Financing A Car
Sweet sixteens are sweet for reasons which have nothing to do with sugar. This is the year we are finally considered grown up (at least to some extent) by our families and the law, because this is the year we are allowed or given the privilege of being able to drive. And all that means just one thing… finally, we can own our very own car!
The problem with financing a car is that you do have to put quite a lot of effort into it. Financing a car can be done through your own savings (which again brings back the points of hard work and commitment) or it could be through a loan from your family, your company, a bank or some other third party. Financing a car through your own savings is something that can, and should, make you proud. Saving up all that cash to pay for the first down payment of your car will mean that you can show to the world that not only are you the proud owner of your own set of wheels, you got to this level because you worked for it.
There’s nothing wrong in getting a loan for financing a car, even if it is from your parents. Most of the time, parents are willing to help out with financing a car if it’s your first. Working in a company for more than a certain number of years mean that you are eligible to apply and receive a loan from that company for the reason of financing a car, and a stipulated amount will be cut off from your monthly salary for a certain number of months until the loan is paid off. Usually this kind of loan comes with interest, but it’s normally at quite a reasonable rate. Loans or leases from banks are a whole other kettle of fish. Interest rates cause the biggest difficulties when financing a car through banks. They are usually quite high, and have only been exacerbated by the credit crunch, so you would probably lose on the deal.
Choose wisely, because you may wish to make additions and modifications to the car once you’ve bought it, and the choice you make will affect how much you have left to spend on it.
