Should I Get a Loan For My Car?


At first blush, personal finance seems like an untamable beast due to so many moving parts. You have to take into consideration your bills, taxes, income, future goals, investments and much more. Luckily, a simple way to combat this overwhelming feeling is to take into consideration what point in your life you are currently at.
While this can be said for virtually all facets of personal finance, it is perhaps the most important when considering a loan. Car loans, for example, are something that an individual should put quite a bit of thought into before making the leap.
Let’s take a look at a few of the things you should consider before moving forward with securing a car loan.

Consider Your Savings

First and foremost, you need to consider your savings. Always follow the golden rule of having a savings account with at least 3 months of expenses in it. This way, if you ever suddenly lose your job, you will have a nice buffer to hold you over while you look for another one. If you do not have at least 3 months of expenses covered with savings, chances are you’re going to need a loan. Dipping into your life savings just to buy a car outright when you can be paying a manageable monthly loan payment.

Consider Future Income

If you plan on buying your car outright instead of getting a loan, you’re going to need to consider your future income. Securing a loan when you’re unsure of whether or not you’re going to be able to pay for it is never a good idea. Always make sure you have a steady job that is very secure before moving ahead with a loan. Should you default on your loan, you will run into credit problems in the future making it hard to not only get a loan but credit cards as well.

Comments

Post a Comment

Popular posts from this blog

Forex Trading Requires Some Caution

Forex trading, like all potentially profitable investments, can be risky. Here's how to arm yourself with the knowledge you need to keep from getting burned. Whether it is in the millions or thousands, trading in the Forex is a bit risky. There are a lot of players involved and if you don’t arm yourself properly with knowledge about the Forex you may just get swamped. The Forex is the largest, most vibrant market in the whole wide world. The financial world has never had a market that involves so much transaction. Over a trillion dollars worth of different currencies exchange hands everyday. Some lose in the trade, while some hit the jackpot and make tons of money. The Forex is characterized by its unpredictability and the liquidity because it deals with foreign currencies and each one's value influenced by their own country. That's why anyone who is greatly considering joining the Forex trade should think twice, thrice and maybe even ten times before doing so. This
Read more

Free Forex Guide Part 4

Getting Started   When it comes to getting started in forex trading, there are quite a few things that you have to consider first. The first thing that you need to do is to find and choose the right broker to help you in making your trades. When you are choosing a Broker you need to know that there are many Forex brokers to choose from, just as in any other market. Here are some things that you need to look for in making your choice: Low Spreads The spread, which is calculated in pips, is the difference between the price at which a currency can be bought and the price at which it can be sold at any specific point in time. Forex brokers don't charge a commission, so this difference is how they are going to make money. When you are comparing brokers, you will find that the difference in spreads in Forex is as large as the difference in commissions in the stock arena. What this means is that lower spreads will save you money and therefore, look for a broker that offers low
Read more

Free Forex Guide Part 6

Technical Analysis Just like their counterparts in the equity markets, technical analysts of the Forex trading market analyze price trends. The only real difference between technical analysis in Forex and technical analysis in equities is the time frame that is involved in that Forex markets are open 24 hours a day. Because of this, some forms of technical analysis that factor in time have to be modified so that they can work with the 24 hour Forex market. Some of the most common forms of technical analysis used in Forex are: • The Elliott Waves • Fibonacci studies • Parabolic SAR • Pivot points A lot of technical analysts have a tendency to combine technical studies to make more accurate predictions on your behalf. (The most common method for them is combining the Fibonacci studies with Elliott Waves.) Others prefer to create trading systems in an effort to repeatedly locate similar buying and selling conditions. Choosing Your Strategy Most successful traders will develop a
Read more