How To Finance An Auto Purchase Essays Examples

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In the current world, both employers and employees should be aware of their personal finance management. Personal finance entails an individual’s decisions and activities such as budgeting, savings, debt servicing, mortgages, savings and many more. It involves analyzing one’s current financial situation and predicting both long-term needs and short-term needs. Personal finance investigates how the current economic status relates to the future. Frequently, most people seek advice from financial related websites and financial planners on how to manage their money or finance an auto purchase. Typically, the personal business entails visualization like budgets and networks. For employees to accurately plan their personal finances, they need to perform assessment, goal setting, plan creation, execution and finally monitoring.
According to the Walls Street Journal dated April 2015, the writer spells out tips on how to finance an auto purchase such as buying a car. When one goes to a dealer to buy a car, the salesperson will eventually request the intended method of payment. It’s advisable to insist on paying in “cash”. It indicates that a person is not interested in the dealer or manufacturer financing. Dealer sponsored financing is not always the appropriate method, and the author prefers individuals to credit union banks with better deals on car loans. The article does not only apply to buying a car but can also relate to student purchasing a book or academic items.
The act of showing the car dealer that one is not interested in his or her financing will ensure that he or she pays the deal with more profit. Dealers have ways of slipping extra fees into the investment plans by up-charging buyers hence avoiding them will help save a better part of the finance. The next step is negotiating the car price. The article articulates that the car buyer should consider the used cars (factory pre-owned cars) because they come with extra assurance about their condition at the time of purchase. These cars are likely to lose up to 18% of their value for the first year of manufacturing. Ensure the car is certified and entails a warranty from the manufacturer, inspected and fixed. The article relates to my class work as it highlights the automobile decisions one can take in real life situation.
When going to purchase a car, don’t let the dealer influence your decision instead have affixed mind by sizing your future car loan. According to the writer, one should avoid purchasing cars with monthly payment exceeding 20% of the disposal income instead they should find out prior how they will get their loans. That means after one pays all the bills and expenses; the maximum auto payment is one fifth of what remains. Calculate the duration it will take you to repay the car loan. Do not take long since it can yield much interest. It is advisable to keep your loan term to at least three years but should not exceed five years. Do not use any of your tax-sheltered retirements saving on car, as you are likely to pay through penalties robbing your financial future. Find a best auto loan, a focus on annual percentage rate offered by the mortgage lender. It will help you cross-check loans from each lender to another. Get the best credit at the credit union and avoid distraction from cash car deals that can result into rebates hence cash back deals.
Before securing a well-paying job and still balancing between paying your loans and your bills, it is advisable to apply the rule of living according to the standards. The writer advises such people to avoid expensive cars and costly loans. The above-discussed article relates to the topic personal finance as it highlights some of the actions that might assist the individual in utilizing his finance well. The application of the above tips to my financial situation, I will be able to regulate my financial activities and live real life putting into practice the elements of personal finance.