Most people drive a car that is within their budget, reliable and something that they perhaps like but not love. Many people have aspirations to splash out on a nicer car, but when is the right time to do this? Cars are always expensive, but the price rises drastically when you begin looking at luxury and more desirable vehicles.
Bide Your Time
You may want to splash out on your dream car now, but this is not always a good idea especially if you are a relatively inexperienced driver. It is a good idea to spend a few years developing your driving skills and confidence as well as having a few years of (hopefully) no insurance claims on your record as this will help to bring down the insurance costs of a more expensive vehicle.
Save Up
Following on from this, spending a few years driving a cheaper car will also give you the chance to save up the money to buy a nicer car. Hopefully, you will be driving a car with low running costs and be able to set some money aside each month to go towards a newer vehicle. You should also address your overall financial situation and try to improve this if possible whether this involves putting money in a high-interest savings accounts, progressing your career, passive income streams or keeping household costs low.
Consider Leasing First
Before taking the plunge and splashing out on your dream car, a smart step to take first is to lease instead of buy. Leasing a desirable vehicle like the Audi A3 for a few years before buying it for yourself allows you to see whether or not this is a vehicle that you really want to own and could be a smarter financial move too. In fact, many people simply decide to lease instead of buy because you do not have to worry about depreciation, which can be as much as 35% in the first year alone. Additionally, leasing also allows you to drive a brand new car every few years so it is perfect for those that like the idea of driving the latest cars and are not too concerned with ownership.
Find Ways to Make Savings
Once you have a few years of driving under your belt, you have put yourself in a healthy financial position and tried leasing for a while you will be in a good position to buy a nice car. There are then ways that you could make savings/make it easier to afford, such as:
- Buying used
- Buying nearly new
- Arranging a finance deal
- Part-exchanging your current car
- Shopping around
- Negotiating
Many people have dreams of owning their dream car rather than one they can simply afford, but you need to make sure that you do this at the right time and hopefully this post will help you to make the right decision.