Making the decision to get your own car can be one of the most exciting decisions that you will ever make and will no doubt be a time in your life that you have dreamt about for a long time. However, it is very important for you to think very long and hard before you jump in to buying a car no matter how tempting it can seem because committing to a car means committing to a significant financial commitment and you need to be very sure that you can pay this off without getting in to debt.
Setting a budget and a financial goal
In the months before you decide which car you want to own, you will need to start by deciding what kind of money you are able to invest in your new car. You will need to set a realistic budget that would include the initial deposit of the car and also the monthly installments for the car. Of course, before any of this, you will need to learn to drive and this too will be a financial commitment as you will need to pay for lessons.
It is important for you to write own your monthly earnings and your savings after which you will need to subtract your rent, other accommodation costs, your food and any other set expenses you may have. After you have done this, you will need to allocate an amount of money for any emergencies that may occur and it is only then will you have a rough idea about how much you can afford to spend on a car. If you find however that you cannot afford to buy a car just yet, you can still prepare yourself and at least learn to drive from the reputed school until you manage to collect enough of money to buy your car.
You will also need to calculate in detail what you need to spend monthly on your new car in terms of maintenance as well. Ideally, you would need to pay at least twenty percent of the total cost of the car down as the initial deposit and if you cannot afford to this, you may end up spending a lot more than the actual value of the car when you have finished with your installments and you do not want to do that. It is also important for you to roughly calculate what your transportation will look like in the average month so you can also calculate and incorporate the fuel costs in to your budget.