Today, a car is not just a luxury. For many families, especially those living in big cities, this is a necessity. But not everyone can afford to buy a vehicle. Therefore, the question of where to get money for a car is quite relevant for many modern citizens. In reality, there are many options, the main thing is to properly motivate yourself and confidently go towards your goal.
Where to borrow money to buy a car?
Most often this is the first question that the future owner of the vehicle asks himself. After all, it is quite difficult for many to make such an acquisition immediately, without borrowed funds. Today there are many options where to get money for a car.
The most popular are the services of lending organizations, which help almost everyone to purchase a long-awaited vehicle.
When the future owner of the vehicle begins to think about the method of financing the purchase, first of all, he must decide on the choice of car model, its cost and understanding of how much money is not enough for the car. If a small amount of money is needed for the treasured purchase (in case of existing savings), you can consider a loan option from friends or relatives. You can also go to the bank for an inappropriate loan or get a small consumer loan.
Is it possible to accumulate?
How to raise money for a car? Another, no less relevant way is to save and accumulate. Many neglect this option, believing that with one salary it is unlikely to be able to get a sufficient amount. But if desired, everything is real.
First of all, it is worth deciding on the choice of a future car and calculate the amount that will need to be postponed from each monthly income.
In order to protect their savings from inflation, experts recommend not storing money to buy a car at home, but opening a deposit account for this purpose or issuing a plastic card with interest on the balance. Also, it will not be superfluous to draw up a personal financial plan. Most citizens do not like and are not used to keeping records of their finances - income / expenses, saving on purchases and saving money. And completely in vain! There are no difficulties in this matter, you won’t have to figure it out for a long time, especially in modern gadgets there are many organizer applications with which you can quickly and easily learn how to manage your finances.
Tips & Tricks
Many do not even know how to save and save money. But everything is quite simple. First of all, it is worth revising your expenses. There are many ways to save money on a car, including by saving:
- Shopping at discounts and special offers. Due to the great competition of retail chains, customers can significantly save on purchases of products, clothes, household chemicals.
- Refusal of frequent entertainments. For example, you can limit gatherings at the bar every weekend or instead of going to the cinema to watch a movie at home.
- If possible, walk to home or work, saving money on a taxi or paying for public transport.
- It is worth revising the use of water and electricity at home, this will save on utility bills.
- You can analyze the tariffs for mobile communications or the Internet, disable unnecessary paid services, etc.
Enough options, it remains to bring them to life. And the saved amount can also be put aside in savings.
How much do you have to save?
How long will be the accumulation of money for the realization of a cherished dream, depends solely on the specific wishes and the level of earnings. The accumulation period is calculated simply - 15% of the monthly budget is calculated (or another amount that the future car owner is ready to put aside), the amount received must be multiplied by 12 - this is the annual potential accumulation. Now we will divide the cost of the selected car by this amount - this is the period for which it will be possible to really save up for the car.
Buying a car under a car loan program
The most popular way to buy a car is with borrowed funds from a bank. Today, a car loan for a used car or a new vehicle can be issued at almost any financial institution.
Thus, it will turn out to buy a car even without a down payment. Such a targeted program is the most rational decision when a lot of money is required for a purchase. Naturally, those who want to use a car loan for a used car or a new car should consider all the pros and cons. As an advantage, many note:
- the ability to immediately use a car;
- when making a large cash investment will not be required;
- You can choose small monthly payments for a long term of debt obligations, which will reduce the burden on the family budget. But here it is worth considering that in this way the borrower will overpay a larger amount of interest.
It should be borne in mind that in the conditions of a car loan agreement there may be pitfalls that need to be understood in advance. In most cases, this is an acceptable way, especially for those who do not know how to save money on a car and do not want to wait a lot of time.
Installment purchase
This is the next option where to get money for a car. Of course, this method is much tougher for the potential buyer, but at the same time, it saves on overpayments of interest. The down payment here is much longer, and the period for paying off the debt is less. Minimum requirements: the borrower will be required to pay at least a third of the total price of the car as a down payment, and pay off the balance no later than 2 years. Some companies ask to pay immediately half the cost of the vehicle, and pay off the rest of the debt during the year. When applying for installments to obtain finance for buying a car, you need to take into account another 10-20 thousand rubles. for banking services (opening an account and issuing a card to pay a debt amount). It is imperative that you strictly observe the schedule of payments under the contract, since the risks are large and the penalties are serious.
Not all experts recommend this option. Installment agreements with different companies can be with quite favorable, and with very enslaving conditions. When making such a responsible decision, the borrower must carefully study the details of the contract and evaluate the financial possibilities. You need to look carefully at the contract itself, additional payments and commissions, and whether the full cost of car insurance is registered.
Buying a new car in the cabin under the trade-in program
Those who wish to purchase a new car without mileage offer car dealership services. But this method is only available to those who already have a used car. Have a car, but want a new model? It is worth taking a closer look at the condition of your car, thinking about how much it will cost in a couple of years. Used vehicles are dramatically losing value. Maybe it’s more profitable now to change the car for a new one so that it does not have time to depreciate? For such cases, a trade-in service is provided. It is provided by official dealers and car dealerships.
In most cases, this is a good option to sell your used car to buy a new one for a small amount of cash. Payment for a supported car is immediately credited as a down payment when you purchase a new vehicle on credit.
Leasing as a way to purchase a car
If there is no car, but you really want to buy, a new car under a leasing agreement may become a working option. A leasing company requires payment for its services, but the benefits are obvious. A debt agreement, but without a credit yoke. A car is fully owned by the leasing company until full payment, but the borrower uses it on a rental basis. When drawing up a leasing agreement, it is worth considering the offers of several companies. Conditions may vary quite significantly. Some overpayments can be 5-10%, while others - almost half the cost.
Conclusion
These are the key and most common methods regarding where to get money for a car. Each person from the proposed methods can choose the most suitable. You need to decide on your own, taking into account your own financial capabilities and the cost of the desired acquisition.