There happens to be two big purchases that we are likely to make in our lifetimes. One involves where we live, and one involves how we get around. You are likely to have guessed it, the property and the car. These are the two big purchases for obvious reasons, they cost a lot of money. A house is likely to be the most expensive thing you ever buy in your lifetime, and your car can be a close second. Followed by things such as once in a lifetime holidays and the big cost of a wedding.
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However, there tends to be a lot that you need to consider when it comes to making these two specific purchases. From how you might fund them to the things that you may need to consider before signing on the dotted line. With that in mind, here is a breakdown of these two big purchases and some of the things you may need to consider to help you make the right choice and a considered purchase.
The car purchase
Let’s start with what is likely to be the second biggest purchase in your lifetime, the car. A car can be a big lifeline for you. It could be part of your job, where you need to visit your customers and clients. It could be the way you get to and from work and could be a lifeline for getting children to school and allowing you to live your life. So what is it you need to think about when it comes to making this purchase. Here are some suggestions.
What do you need the car for?
One of the first things to think about would be what exactly do you need your car for. There is a lot to consider to help you answer this question. First up, where you live and how you might store the car. Will it be parked on a drive, in a garage or not he roadside? Do you have space for a big car or should you consider something smaller? The next thing to think about would be what you use the car for day to day. Is it likely to be something that you will rely on for your job or will you want to just use it for social and domestic use? Another thing to think about would be who will be using the car initially. Is the car just for you or will you need to have space for other people? Have you got a large family where you will require to have more than three seats in the back? Or do you need a big enough boot to house not only work things if it is a car used for company purposes but also things like pushchairs, shopping bags, luggage and other personal items that you may need to carry around with you. Getting these questions answered and taking the time to consider what it is you want and need the car for will help you decide on the style, and also the manufacturer. So whether you are going to a Vauxhall dealer or searching out your local garage for a used car bargain, knowing what you want will help you to start the negotiating process and eventually getting the car you want and need.
What is your budget and how should you fund the purchase?
Once you know the style and make of the car it is you want the next big thing to decide upon would be your budget for the purchase. There are two ways you can look at this and it is entirely based upon how you want to pay for the vehicle. If you have savings or the funds ready, then your budget will be based on that amount and you will be looking to get a deal on the cash price of the vehicle. However, if you are looking to pay for it monthly, and either go to the bank for a loan or speak to the dealer regarding a hire purchase agreement or a lease, then your budget should be based on what you can comfortably afford each month. Knowing the budget will help you to decide upon the type of vehicle you want as well as what you can afford. It’s important to know this information before entering dealerships and taking on searches online as this can help you to be realistic with your car search and also the eventual purchase.
How long do you plan on keeping the car?
The next thing to think about would be how long you plan on keeping the car. Is it something that you just want to keep while it has warranty so that you are covered for repairs, or are you the type of person that will keep a car until it has had its day? The thing to think about would be that a car is a depreciating asset, so is it worth it to you to hold on to it for any great length of time. Again this would depend on what you might be using the car for. If you are needing the car for work or will rely on it heavily then you are likely to only want to keep it while there is warranty to be utilised.
Do you have a part exchange to consider?
Finally, when it comes to the purchase of your next car do you have an old one that you will want to part exchange in? This could help you to get a good deal when it comes to the purchase of your next vehicle. If you have a part exchange, make sure all servicing is up to date, the bodywork is good and you present it in the best possible way to help you get a great price to go towards your next purchase.
The property purchase
The last big purchase to mention would be the property purchase and this is always going to be the most expensive purchase that you make. We all strive to be in the property ladder at some stage in our lives and can see it as an ambition to aim for. We save hard towards a deposit and then look to climb the ladder as we move on in life, or even consider additional properties as an investment to earn an income on the press or the rental each month. But what should you be thinking about when it comes to a property purchase. Here are some of the things to think about.
How will you purchase it and what is your budget?
One of the first things to think about when it comes to making a property purchase is to think about how much your budget is and how you plan on making the purchase. Most properties are bought with a mortgage, but the type of deal that you can get will vary from interest rates to lenders with different deals available. You also need to factor in the having you have and what percentage of the deposit you have. Basing the deposit and the mortgage amount as a total, that will give you the overall purchase price. You also need to remember that there are fees to consider for the lender as well as any legal fees that you may incur during the property purchase process.
What type of house and where it should be?
Once you have the budget now comes the fun part. Finding the right house or property for you. There are a few things that you may need to think about to help you narrow down your search results. You need to think about the area in which you want to live and factor in things such as schools and local amenities as well as calculating your commute to work. You then need to think about how many bedrooms you might want or would life, as well as other wants or needs such as a driveway or a garden. Having a list of things you want and then the things you can compromise on will help you to locate the right sort of property for you. Make sure you see a few different ones to help you make the right choice. You might want to consider other options such as a flat or whether or not you choose to buy a home that needs some work. Buying a property that would need modernising could be a very smart investment move and have you increase your profits when you come to sell and move on to the next home.
Plans for the future
Last of all, make sure you take the time to think about what your future plans might be. This might be plans you have with work or plans for a family. Can your home accommodate? Is this house move going to be a short term or a long term thing? Knowing what your plans are for the future will help you to make a great choice for your property now. So that you can end up profiting from your property purchase and not facing any depreciation or loss in value.
Let’s hope sharing some of these things will help you when it comes to making one of these purchases in the future.
You know, your points are about the purchase is really good. Something which we all should remember and consider. unless you are filthy rich!
I really appreciate you sharing this because when it comes to purchasing a car or a property, there are so many different things to factor in, outside of your financial situation!
Next in my goal is to purchase a property ~ it seems a daunting idea. To be locked in a certain place for a time so you really have to put much research into whether the place you’re eyeing for is truly worth it.
Thankfully my family taught me young to try and always purchase a vehicle with cash only. This not only leads to no debt, but also practices setting goals and working towards them. A piece of advice that my grandmother gave me when it comes to purchasing a home, is to not purchase one unless you see yourself living in it for a minimum of 5 years. She says this because of all the additional costs of purchasing a home, beyond the actual sale price isn’t worth it unless you stay over 5 years.
Buying a car or house can be stressful. It is such a big purchase and this is very helpful!
Wow!! these are some great thoughts and i completely agree… when you buy these two things, you should choose the one that fits you well.
Really great guide in making sure that purchases are done right.
Planning for large purchases really helps me feel happy and excited when the time comes to actually spend money. I am naturally a saver, and this guide is a great resource for when to spend money.
Speaking of buying a car, we opt for a second-hand car that uses cheaper fuel and sold our brand-new car for a practical reason. No loans from bank, and still the cheaper car serves us right.
Great tips! i agree: the more money item requires the more planning should be done for it
You make very good points here when it comes to buying a property or a car. So far, I’ve only had to deal with car purchases but hopefully, in the near future I will be looking into buying a house as well.
These are all good things to consider. Too many people rush into purchases only to regret it later. I follow Dave Ramsey. His common-sense approach to money is great.
these ideas and points you have mentioned here are really amazing and lovely..glad you shared this with us..great work though…
Before the pandemic we were scouting for a place to move in. I am glad I made a second thoughts on that place because I lost my job a month ago.
A couple of years ago I bought a car and I agree with your advice. I actually chose to buy a car from an individual rather than a dealer this time. Funny story, I arrived at the elder married couples home (not alone) to look at the car and test drive it and when it came time to sign/exchange papers in their home I saw family photos and exchanged life stories (I ended up being there a while… you know elder people with their many great stories) I found out their son is a well-known actor and in one of my favorite movies AND that he drove the very car I bought from them. I got to hear stories about him and see photos of him and his family growing up. Small world ; )
There are really many factors to consider when purchasing a car or a property. It should never be taken lightly.