Marriage marks the beginning of a new stage of life as a newlywed couple. With this, you will soon embark on a range of other major life decisions, some of which will concern finances. So then, when it comes to purchasing a new car, there is a lot for the two of you to agree upon, beyond the general preference for a particular make and model.
Something old, something new…
One of the first things to consider is whether you’re in the market for a new car, or a used vehicle. In many instances, given the financial burden that accompanies a recent marriage, and the prospect of family planning for some couples, savings for a new car are somewhat limited.
In this instance, you may look to venture into the second hand market to look for a somewhat recent car, that doesn’t compromise on safety, but is priced at a discount. Pursuing this option could help you stretch your savings that little bit further to obtain finance that doesn’t impose a strain on your new life together.
Budget and income
At some stage you will both need to discuss the extent of your budget, which will be based upon your financial standing and income levels. Pooling savings together in a joint account is a recommended step to safeguard those finances so that you don’t end up inadvertently spending elsewhere.
It’s also critical to gauge the working commitments you both expect to undertake, as having two incomes will provide you with more scope to obtain higher levels of financing. With that said, the nature of work each of you perform will also have an influence, particularly if one or both jobs do not provide fixed income.
Signing the dotted line
Obtaining finance as a couple is no more cumbersome than as an individual, just with an additional layer of scrutiny. The options available to you are quite similar to conventional financing options under individual names, albeit typically with a higher threshold amount available. Both of you will be required to meet the relevant eligibility criteria to apply for the loan.
If you are both co-signing the loan, you will both hold responsibility for making repayments. Therefore, if one of you struggles to make payments, the other person also bears responsibility. Both of your income levels and credit scores will be considered, so depending on these factors, you may decide against co-signing the car loan. Beware however, in this instance one party will assume the entire risk associated with late payment or default on the loan.
The Fincar team is here to help you with all your financing needs. Contact us today to help arrange your next car or equipment loan.