Ravi Kishore, a common man in India walked into a car dealership showroom. Excited to purchase the first car, he had been saving quite a sum to get a second-hand car on a budget.
Ravi did his bit of research on the maintenance before getting into the car dealership. Real soon, he grabbed the opportunity to see what the dealership had in offer.
He was as ready as can be to take a look at what was on offer at the dealership, and thought that the potential car possibilities would be endless.
Soon, the car dealers and Ravi realized that there was not enough money saved in favour of the car.
Ravi Kishore had to walk out and his plan could have worked out in his favour if:
Need Vs Want!
Knowing the type of car, we want to buy will help us determine how much money we need to save. Besides the hovering market prices, we can still save up or apply for a loan instead, if we are salaried.
For example, if you just want a car to drive to college, work or the shops, a small car would be your best choice.
Keep a close eye on the ongoing prices of that car
Besides saving up for purchasing the car at an ongoing price, Ravi should also consider the costs of owning and maintaining a car, as listed in the book he read:
How to Make Your Car Last Forever by Thomas Torbjornsen. We don’t want to find ourselves buying a car and then not having enough money to pay for ongoing costs.
Mark a budget and save up to it.
Upon deciding the car and owning the responsibilities to maintain and sustain the comfort in the future, Ravi can create a future budget and continue saving up to it.
This helps him to counter the budget with better income plans. He can aim at expenses and see how much he can save each week.
Scrap unnecessary expenses
The biggest advantage of creating a budget for the right purpose can reduce unwanted expenses naturally. In fact, Ravi can find it surprising to see that the amount that can be saved is high.
To not be taken away by e-commerce trendy and fancy gadgets or fashion fabrics that only give momentary or temporary happiness. To not get carried away by the trending buys, even if it is unnecessary.
Target multiple incomes
It would be the best idea if Ravi not only had a job but multiple incomes which serve as not only savings but he can lead a safe and comfortable life.
Negotiate the price of the car
The last trick is to face the dealership with the right attitude and strike the right chord to negotiate. Always pitch for a lower price and the dealer will meet our price in-between.
Whether one is buying from a dealer or a private seller, knock the price down a bit.
Hopefully Ravi’s efforts both technically and financially will help people get their first car without too much hassle. With these tips in hand, you should be able to save up for your first car in the shortest amount of time possible.
If any of the above tips help you meet your financial goal to buy a car, do leave us a comment or feedback if it has worked otherwise!