In 2016, the U.S.
Understanding Why Financing A Used Car Immediately May Not Be The Best Long-term Plan
Although it may seem obvious, it should be reiterated that establishing a budget for your used car is essential. One unfortunate problem that many single parents have experienced is financing a car with payments that are expected to be paid with the as yet non-existent employment. It is easy to see that by doing so, you may have a car for a month or two.
However, if you don't get the job you want or expect and must settle for the lower-paying job you can get right away, you could find yourself back on the bus with your kids in a few months when you cannot afford the car payment, insurance, and other fees associated with vehicle ownership.
Planning For Responsible Car Ownership
If you have recently experienced financial challenges that have made buying a car challenging, there are two options for buying a car that you should consider. One is paying cash for your car, after having it inspected by a mechanic who is willing to put his or her findings about the vehicle in question in writing and provide a warranty for that information. If you are one of the fortunate single parents who gets a sizable tax return, buying a used car with some of those funds is a good idea.
If you don't get a
When you have been able to put that amount of money into a savings account every month for six months or more by a specific date, you will know that you really can afford it. If you have to put that payment off or you find yourself skimping on other expenses in order to do so, you cannot afford that amount and you should re-assess your budget. The upside to that plan is that after six months of putting money aside, you will have a hefty down payment to buy a used car. The downside is that you and your kids will be on the bus, in a cab or walking where you need to go for a bit longer, but you will not be putting yourself into a more tenuous financial position while doing so.
In conclusion, owning a car can make it easier to get and keep a job, which can dramatically improve the quality of life for you as a single parent and your children. As a result, you should consider the above facts as you are planning to look at used cars.