2 Financial Steps to Take When Buying Your First Car
Unless you live in the heart of a major city, it’s hard to rely solely on public transportation to get to work and run your errands. If you’re sick of waiting for buses that never come and being late to all your appointments, consider buying a car. Take the following steps to make sure your budget is ready for this major purchase.
Apply for a Loan
Most people cannot afford the total cost of a car right away. Do not let this discourage you from bringing home your favorite model. Instead, apply for installment loans Mississippi. You receive a large amount, called the principal, which you can put towards your car, and then you pay the lender a smaller amount every month until you have repaid the entire loan. Prepare for banks to look at your credit history and current loans before approving your application. As you look at different plans, watch out for high interest rates and late payment fees.
Invest in Automobile Insurance
Just as medical emergencies are devastating to your wallet if you don’t have health insurance, one accident in an uninsured car is all it takes to ensure that you’ll be in debt for a while. Furthermore, every state besides New Hampshire and Virginia requires drivers to have insurance, so if you plan on driving to any other states, you need to make this investment. That way, if someone hits you, you don’t have to stress about the cost.
Purchasing your own car is a major financial decision, but you should think of it as an investment in your efficiency and happiness. Now that you don’t have to wait for public transportation, you can take control of your work schedule and get there exactly when you want to, as long as the traffic isn’t too bad.