The New Year always seems to be a good place for great ideas, but many of us fall to the way side too quickly and easily as we discover that the idea was solid, but the intention was not.May we suggest a new plan of attack.
1. Make that list and keep it for a while.
2. Then stage two is to see what you have actually done and cross it out. The rest well, generally you won’t do no matter how hard you mentally kick yourself.
3. Take that list and make another one-but this time of places, institutions, friends, companies that can do it for you!!!
4. Recognise that it is almost March. If you really wanted to make a difference in 2011 then it is almost too late, so get on with it!
Passing on some responsibility for things you really have no idea about can be very liberating. Things such as mortgage reductions, superannuation, life insurance and motor vehicles with salary sacrifice. Most of us need professional help in these areas as we have paid the price too often by listening to friends.
This is especially so nowadays in the highly regulated world in which we live. The rules have changed for just about every category and are continuing to change on a daily basis.
In the world of Motoring there is a lot of interest in turning to Brokers both for the car purchase and the financing, for the ease and peace of mind that comes with handing over the reins of something you really couldn’t care to face on a day-to-day basis. These people are experts and are buying and financing hundreds of cars every month, not once every 3 or 4 years like most of us and they are aware of the pitfalls and the requirements of individual lenders. They are also up to date with the latest new car model releases and where to get the best deals.
Let’s face it; there are far better things to do with our lives than visiting multiple car dealers on the weekend and then ringing round to get the best finance deal.
Surely it makes more sense to get your finances in place first. Tell your broker what your maximum budget is. This is usually determined by what you can afford per month. Then advise how many kilometres you expect (honestly) to travel each year and how many will be business related. How long would you like to keep your car? Bearing in mind that the best resale value is to be had when the car is still under new car warranty and without high kilometres.
Why are these questions so important? Simply because nobody wants to own a car in a couple or three years time that is worth much less than the finance payout at the time. Let your broker provide you with the best mix of term and residual/balloon payment based on your answers to these questions.
Once you determined monthly affordability, kilometres travelled per annum couple with the relevant residual, then this will equate back to a maximum amount financed and consequently the maximum price of the car you can reasonably afford. Then get the finance approved for this amount. Simple really!
Believe me, there is nothing worse than wanting to own a BMW when your monthly budget only stretches to a Holden.
This also stops you being talked up by a car salesman and ensures no buyers remorse after the purchase you cant afford!