Investing in a new motor is always one of the biggest financial decisions of your year. Not only are you worried about your investment depreciating over time, but you need to make sure that you have the cash to pay off loans, or to purchase your new vehicle outright, without putting your other financial responsibilities in jeopardy. In this guide, we’ll take a look at all of the options at your disposal to help you finance the purchase of your new motor – whether it’s a motorhome, a campervan, or a new car you plan to use for work.
If you’re able to put a little cash away each month, and you’re planning on purchasing a new car some time in 2021, the financially responsible option for you and your family is to start saving today.
Create a new budget, and cut out your expenditure on certain luxuries that you can do without, and transfer a chunk of your monthly income into a savings pot. Leave that pot to grow over the months to come, until you’ve saved enough to buy a car outright. This is a financially responsible way to finance a new car, although, for many, it’s unsustainable – especially in the unstable economic climate created by the COVID-19 pandemic.
Finding a Loan
Loans are another way to finance a vehicle that you might not be able to buy outright – even with many months of savings. There are plenty of circumstances where you might need your new vehicle sooner rather than later. Vacationers want a new campervan right away, while workers need new trucks when their old ones break down.
In these circumstances, you need to find a loan that you can pay back over time – up to a period of 10 years – which will help you purchase your new motor. Use the tool provided by Auto Finance Online to get to grips with the kinds of loans you can use to finance your new motor this year.
Selling Old Cars
Unfortunately, most cars depreciate in value over time. Only those that have been taken very good care of, and which have not built up huge mileage, are fit for a good resale value. In order to prevent too much depreciation, check out online guides on maintaining your motor vehicles.
We’ll assume your vehicle has not depreciated too much in value: There are three options for you to make cash on your old car:
- Go to a dealer, and ask them to sell your car for you. The dealer will take a cut of the sale, which will leave you with less cash to spend on your new car.
- Sell your vehicle independently. This is a good option for those who know how to use online seller platforms, and can devote the time to talking with potential buyers.
- Scrap your vehicle. If your vehicle isn’t worth a great deal of cash, a breakers yard or scrap year will offer you a price for its parts. This is the best option to help you get rid of an unwanted car fast.
Using the cash you earn from these sales, you’ll have a little more to put towards your new truck, car, or campervan this year.
This guide will help you understand your financing options when it comes to purchasing a new car in 2020 or 2021.