While I repeatedly talk about financial independence, it is not always just about saving cash and having investments. Having your own car, as per your affordability and feasibility, is a form of financial independence as well. Finding the right tools for planning to buy your car will be your super power. Let’s learn how to buy a car!
Where to go for the best advice?
In olden days, one relied on an elder or a friend to guide you on where to start and how to setup payments for a car or a house. But in today’s world of global immigration and internet, many more resources have now popped up to support us, and often times are more efficient.
Should you even buy a car?
I know that buying your first car is daunting. It is also essential. Yet, many will ask, which to buy first? The car or the house? Well, to be honest, the car! Why? because 1. Car is cheaper than a house. 2. It is the means of transport which will make you more efficient.
Where to start?
In Canada and USA, many websites have popped up to guide you on your car purchasing journey. I have found that Autotrader.ca in Canada is a well-built platform to start. It will give you not just the listings, but also will guide you on a trade-in. Before you head to a dealership, spending time exploring the model and price-range you are looking in, will better equip you in getting a good deal.
Now that you know what car you want to buy, do your budgeting. Nowadays many banks give you the option to track your spending by tracking your credit card expenses, and allows you to budget better. I especially like the TD MySpend, as it is synced with the credit card. Explore your own Credit Card company and Banking Institutes to see what would work for you to budget better.
Free Resource which is actually your Super Power!
If you do not have the option of your Bank offering a expense-tracking and budgeting service to plan your budget so as to prepare for the upcoming new expense, do not fear. Let me introduce you to an amazing free calculator on Pigly.com.
I especially like Pigly as it talks beyond just basics of buying a car. It does not matter if you are buying your first car as a young adult, or a newly-independent single Mom, or are just like me, an immigrant with no credit-score when newly-arrived in Canada, this website will give you all the information you need to get you started with your car purchase. Here is a brief screenshot of their Auto Loan Calculator.
I used the Pigly calculator to review my current car’s payments and even printed out the payment schedule and expected amortization schedule. It is was not only accurate, but also detailed!
What I was not expecting from a free resource was all the useful advice on this Pigly by Jose Abuyuan on how to actually get started on planning and getting a car of your own. Do take the time to read all the valuable information before you head out to buy your car.
Pigly has done its homework on giving you all the right answers on what kind of car you should be buying? , should you be buying a new or used car? Should you lease or finance a car? and many more questions that may pop-up in the process. I especially liked the tips shared on its website like the one below.
I have already marked the Auto Loan Calculator by Pigly as a must-read for my teenager who will soon be ready to buy her own car. Head over and give it a read and let me know if you find it as detailed and useful as I did! This is the direct link to Pigly’s calculator .
Let me know if you have any other question regarding planning and buying your car and your first step towards financial independence.