You Have to Know The Difference Between Your Needs And Your Wants For Getting The Best Car Loan
June 25th, 2009It’s great that you can get financing for your new automobile. If you have the right information, you can easily get the best car loan deals available for your profile. But, there is a serious issue you should consider before taking out that loan…
Do you know the difference between your needs and your wants? Do you know the difference between your wants and your desires? If you don’t, you need to as it should be a strong point when taking an auto loan.
I’ll explain with an example…
John needs an automobile to move around. This need can be met with any working vehicle. However, he really wants a rugged vehicle that he can take on his offroad adventures (he wants an SUV). But, what he really desires is a Hummer jeep.
But what effect would buying a Hummer jeep have on John’s finances? Can John repay his loans without abandoning his other responsibilities? If buying a Hummer jeep would bring about a financial burden that’s beyond him at the moment, it would make sense to back off a bit and choose another SUV — That is, a far cheaper one (But still good enough for offroad adventures).
Here again, John should look at the costs of this cheaper SUV and what it would mean to his finances today and in a few months’ time. If he can handle it without ruining his credit rating, fine. But if he can’t find a way to handle the extra expenses (don’t forget auto insurance), then he has to make further compromises…
Go for a used SUV or look for something else that he can afford with relative ease.
This applies to you, too, if you’re about to take a car loan. You don’t have to ruin your finances in order to buy your dream car. If you can’t today, buy something less. There will always be another opportunity for you, hopefully, as you grow richer.
But, let wisdom rule as you make your auto financing decisions.
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