When looking for your next car, you may be toying with the idea of applying for car finance. It is a great way to fund a car without having to find a lump sum of money to get it on the road, but how do you budget for finance? Here are some of our tips…
We have worked with finance lenders and customers for years now, and we have had experience with people from all walks of life. Whether you’re like Martin Lewis with money or need a little extra help, we hope these tips will help you out.
Take a look at your current outgoings and see what you already need to find funds for each month. It may be a subscription to Spotify or a weekly takeaway, pop down your expenses in a notebook or a spreadsheet so you know what exactly you’re currently spending each month. It is also helpful to add what money you have coming in, so you can balance it out.
Once you have done this, you will be able to see what extra cash you have available each month, which will help you work out your budget for car finance. Go through this a few times to make sure you haven’t missed anything off and make sure you account for saving for things like holidays if that is something you do!
This would be a good opportunity to see where you can cut back. It might be as you realise you’re spending a lot on certain things, and you might want to re-evaluate where you are spending. Again, make a list and see if you can get better deals for certain things too, if you don’t ask you don’t get!
Factoring it in
Once you have a budget in mind of what you can afford each month, you may want to give it a go for a month or two, putting that money aside that you plan on spending on finance, so you can see if you are living within your means.
Once you have been through all these steps, you may decide you want to go ahead and get a car on finance. If this is the case, come and speak to the team at We Finance Any Car. We have a huge range of used cars to choose from and we work with a number of lenders too and will do everything we can to find a deal that works for you.