The Big Purchase: Head or heart?
by Eve Green
With summer well on its way, gear heads everywhere have been relentlessly scouring the classifieds for that perfect slice of the motoring dream. From high-end roadsters to burbling rods, there’s something out there for everyone. But the cost implications can be a huge burden on the average enthusiast. With prices fluctuating to climate conditions and ever-growing demand for specialty cars, the days of a bargain seem to be long gone.
There is so much to consider when it comes to justifying the big purchase. Whether you want to save and pay outright, take out a loan, sell other assets or buy as an investment; the possibilities are endless. Of course, there is not simply one right way of purchasing that dream car. It is ultimately down to the individual buyer and their individual budget, and due to the vast array of uses and values of cars, no purchase is the same. A potentially novel approach to car finance is to treat it much like a business transaction, weighing up the pros and cons to make sure your purchase keeps a smile on your face and does not put a hole in your wallet. Following your heart but making sure your head is very much involved in the process as it were.
The Research and the Maths
First things first are working out the costs involved. Obviously there is bound to be hidden costs, from the possibilities of an insurance hike, to trailering and transport. These costs may seem potentially trivial for a large purchase, but for those with a more modest budget it could put that dream just out of reach.
High-end motors can prove costly when considering classic muscle and the actual availability of original parts. It can often be easily forgotten that original parts may be not only difficult to find but more importantly, pricy. Be calm, be patient and don’t always assume that your bargain will actually save you cash.
Any savvy buyer therefore will know to keep some contingency cash behind them for any unexpected costs.
When it comes to purchasing that dream motor, there are many ways to go about it. There may not be just one set way of purchasing, but with a few sensible choices a little piece of automotive perfection could be adorning your garage, whilst you sleep sound in the knowledge that the bank manager will not be knocking on the door anytime soon. It could be said that car finances should be seen in exactly the same way as business finances.
The Question of Payment
With the surge in the availability of car loans and flexible payments, car finance (http://www.carloan4u.co.uk/)is extremely appealing to those wanting to quickly get their hands on their dream motor. They offer the ability to have it all and pay later, (http://fahrcar.com/news-and-articles/classic-car-loans-collector-exotics-muscle-hot-rods-sports-cars/) and obviously car enthusiasts will be happy to take this advantage. But being sensible is key when it comes to car financing. Make sure you can manage the repayments, and also remember to not just look at the repayments monthly, but as a total repayment. After all, that’s how much you’ll actually be paying. Being too highly geared in your purchases can be a disaster waiting to happen. However, if you can manage the repayments and can justify the total amount against the value of the motor, then why not! There are many different options available so shopping around is essential. This option also allows buyers to make the purchase when the value of the motor is at low, allowing you to save significant amounts of money. As apposed when personal finance is available when the prices may have fluctuated or the vehicle sold, potentially making the whole purchase cheaper, as it allows the buyer to make the purchase when the market is at its best rather, than when personal finance is in place.
Wheels of fortune
Buying as an investment can seem silly for such a passionate purchase. But why shouldn’t such a large expenditure be seen as an asset just like any other purchase? Values of rare and exotic cars fluctuate, so a smart purchase can be a great investment. Let’s be honest, it will be sure to get the pulse racing more than seeing share values in the news every week. By buying as an investment, the option to “trade up” is also opened up. Making smart moves by buying low and selling high, as you would with any other investment purchase, not only provides for some seriously enjoyable money making, but also allows buyers to sample more of those vehicles otherwise destined to be nothing more than a poster in a garage or a desktop wallpaper.
Overall all gear heads will dream about that one big purchase and the dream of rumbling down the highway with another addition to their collection. But for some, the finances are just too much to handle. Some sensibility and adding some rationality into the equation, can turn the dream in to a reality and dare it be said, a money making exercise. After all, there is always something else out there for you to enjoy. So it only makes sense to be smart, do the math and make it possible.