Is Your Vehicle Worth the Cost?
“Is your vehicle worth the cost?” is a very subjective statement and largely depends on the financial status of the owner. But than of course there are ways to keep a balance between viable and nonviable expenditure. The below paragraphs will shed some light on how do you can arrive at a point where you are positive that your car is worth the cost.
Most of the new car owners in Pakistan now buy a car through car financing or auto loan offered by several banks and other financial institutions. Now, the basic question is how would a person conclude that what is the worth of a vehicle he can easily afford and manage. Some of the points written below will help you take a wise decision.
- The first thing to evaluate is the kind of loan you are seeking to buy a new car. For a high-flying executive buying a top of the line Mercedes or Audi can be a piece of cake. Paying installments irrespective of what amount would be convenient for him paying each month. At the same time for a mid-level executive paying loan installment for a Suzuki can be taxing on limited income. It is therefore necessary for the person seeking loan to first evaluate his income vis a vis expense. Before applying for a car loan, the person must also calculate the figure he can make as a down payment against auto finance. There is no reason to seek a loan for which a person stresses his life and have sleepless nights. Borrow only what is easily repayable
- Before you apply for car loan it is advisable to select make and model of the car you are willing to purchase. This will not only define the budget you are looking at but will also enable you fully scan the car features such as its fuel consumption. Again, this is also quite subjective and largely depends on the daily run. People who can afford or for those whose fuel bill is fully paid by their office this may not be the first concerned. However, for those who are fuel conscious and drive for large distances this can become nightmare after few months.
Therefore, if you have selected a car which is expensive and have higher engine configuration it’s not the worthy on two accounts:
- The cost of auto finance; meaning the installments will be significantly high because of rate of interest combined with principal amount
- The insurance premium also calculated on the total cost of the vehicle irrespective of how much you have paid as a down payment
- The maintenance of a car is also cumbersome, it becomes more expensive for high end models such as Honda and Corolla. Cars up to 1000cc are easier to maintain and are not a heavy burden on a person’s wallet. For a mid-level executive or a medium sized business man to make his car worth the while is to select an auto finance that is easily manageable.