Cars have long been a symbol of personal freedom. For many people, there is nothing more satisfying and fulfilling than the thrill of taking on the open road, windows down, blasting their favourite music. If this is you, you most probably always picture yourself doing so in your dream car – perhaps a vintage muscle car, a convertible, or some other vehicle. But you think to yourself it is all just a dream and a fantasy. There is no way you could ever get your hands on that car given the state of your finances.
However, it so happens that with proper planning, you can actually purchase the car of your dreams without spending beyond your means. In this article, we have provided a brief step-by-step guide to help you finally own your dream car.
Set a Clear, Realistic Goal
When looking to buy a luxury car that seems out of your reach, you need to have clear and specific goals. Your first and most crucial step is to identify the exact car that you want.
Specificity is the key here. Keep in mind that most luxury cars come with a price tag ranging from £50,000-&100,000.
You need to be realistic about the amount of money you can want to spend, otherwise, you will end up frustrated. Ensure that all the key details are determined before any planning; including the make, model, and year.
You also need to take into account the fact that this car is an investment as with any other – with time, it will depreciate in value. While things are different for vintage cars and antique models, whatever amount you spend will lose value over time. This factor should help restrict your choice of cars.
Apply Your Savings
If you have a dormant savings account and have already built up a significant amount, gifting yourself your dream car is a great way to apply that money.
However, if you don’t have any money saved up, don’t worry, there are still other ways to find that money, only that it will take you longer to buy your car.
If you want to set some money aside for your new car, you need to take the time to review your budget. There are definitely some day-to-day things that you can cut out or spend less money on. You can do just fine without that morning coffee run. These large coffee chains charge upwards of 4 dollars a drink, not including any pastries or side items you fancy.
Why not put that money towards buying the car of your dreams? In the end, when you are flying down the open road in your dream car, the sacrifice will turn out to be all worth it.
Build Your Credit Score
Having a good credit score is crucial when looking to buy a car. In fact, many reputable car dealers won’t sell you a car if your credit score is poor, even if you have substantial savings.
To improve your credit score, prioritize paying your bills on time and also consider keeping your credit cards open. Though keeping your credit card open seems counterintuitive, consider the fact that when you close a credit card, you remove its credit limit from your average, which can result in a lower credit score. The smart move is to keep these credit lines open only using them occasionally. But ensure to pay them on time.
When it comes to raising your credit score, the point is to make sure you are making payments on time. So, you can also consider taking out a small personal loan with the aim of improving your credit score by paying it on time.
Take a Personal Loan
Besides taking out a personal loan to boost your credit score, you can also go for a bigger loan to help fund the purchase of your car. Depending on where you obtain your loan, you can also enjoy lower interest rates. Getting car finance direct is often the best way to secure the best deals.
Find A Second Source of Income
Obviously, this option isn’t practical for everyone. If you have a family or a busy job, you may not be able to take on a second job. However, if you are in a position to do so, a second income can significantly help to speed up the purchase of your luxury car. If your current income sufficiently meets your monthly needs, you can devote your entire second income towards the purchase of dream car.
Determine the Maintenance Requirements of Your Dream Car
After figuring out how you will fund the purchase of your car, your next step is to sort out daily finances. You need to figure out how much you will need for its regular expenses.
Using and maintaining any car costs money, particularly when it comes to luxury cars. It is, therefore, important that you calculate the monthly expenses of your new car beforehand. Here are some costs that you will need to take into account:
- Registration and inspection fees
- Insurance payments
- Fuel costs
- Loan payments
- Cleaning and customizations
- Parking fees
Most luxury cars require more expensive premium gas regularly, which runs up its upkeep costs. You also need to factor in the cost of regular cleanings and customizations (if needed.
All this might seem like a lot and discouraging, however, through proper planning and having realistic goals, you can be able to pull it off.
Seek Out the Best Deals
Don’t just settle for the first offer you come across, take your time and do some shopping around. After figuring out your financing options, it is okay to wait for the right pitch. Seek out that offer that best suits your situation and go for it.