From finding the right car to negotiating the price, the car-buying process can be stressful. You understandably want something which is safe, stylish and the right size for your family. But you also need it to be at the right price too. Aside from your house, a car is probably the most expensive thing you will ever buy. So you need to ask yourself how you are going to pay for it before you begin your search. If you’re unsure what to do for the best, here are three options you might want to consider.
Borrow from your family
If you’re eager to avoid high-interest rates and complicated paperwork, borrowing from your family could be a viable option. If they are able to, talk to your family about lending you the money you require. It could be your parents or in-laws for example. You can then work out your own informal repayment scheme. This is a more laid back approach to buying a car and could be more affordable in the long run. However, It is important to remember that many families have fallen out due to the lending of money. If you are late with your repayments or use the mother for something else, it could cause tension and upset. So make sure you are fully committed to buying a car and repaying before approaching them for financial help.
Use your rainy day fund
If you’re good at managing money, it’s most likely that you have savings account that you pay into each month. While you might have been saving this for home improvements or a holiday, why not use it for your new car instead. This is often the most popular finance method used by car buyers. You won’t have the hassle of repayments or restrictions like you would if you take out a loan. Just ensure that your savings account has a good rate and is easily accessible when you find the car you want. Once you’ve bought the car, you can then start replacing the money you’ve spent.
Using your home
Many homeowners forget about the value that is locked up in their home and don’t consider it a funding option. But taking out homeowner secured loans could be a simple way to of getting the money you need. This type of loan gives you the money you require while using your property as security. The money is then paid back in monthly installments over a period of time. If this sounds appealing, go online and check out different lenders interest rates and terms. Just keep in mind that if you cannot keep up with the repayments, your home could be put at risk. So always make sure you can comfortably make the repayments and don’t borrow more than you need.
These are just a few options you have to fund your family car. Before you start shopping, set a maximum limit and have a clear idea about the type of car you would like. Car salesmen are renowned for applying pressure and without foresight you could end up buying a car that is too expensive and unsuitable.