Buying a Car

First you should determine if your budget allows you to buy a brand new car or a preowned car. The value of a car falls the moment you leave the car dealer. A car is not an investment. It is a depreciating asset.

Do your research and compare cars with your need then determine the type of car that you want to buy, and make sure it is the best car for you. Things to consider:

• Brand reputation-spending less on buying and a lot on always repairing is not advisable.
• Size (sedan or van )-there is no need to buy a big car if it’s just you and one child or spouse.
   

Your affordability of a car is determined after you consider the total cost of the car including the insurance, fuel and general maintenance.

Create a budget. Start setting aside money from your income to buy a car if you don’t have enough in savings already.

You will then need to find out how much you can afford to borrow if it’s not a cash purchase. If possible try and save to pay a deposit for the car to reduce the amount of money you borrow.