Buying a Family Car: Steering You in The Right Direction

Buying a Family Car: Steering You in The Right Direction

Posted on February 9, 2023

If you are expecting a baby, there are a million things going through your mind. You want to give your child the best of everything, and that will include getting a family-friendly vehicle. Your current car may be perfect right now, but when buying a family car, you'll want one that is reliable and will provide you with peace of mind, as our auto loans team explains.

Anticipating your current and future vehicle needs

The average car loan is on average five years, so when buying a family car in you should think about whether your family will continue to grow during those five years.

Select a vehicle that has enough room to grow with your family, so you aren’t forced to change cars midway through the term.

Working out your budget

While it may not be on the top of your agenda, you will need to work out a budget for what you can afford.

With the new baby coming, the average monthly expenditure can easily reach $500, especially if this is your first kid and you will want nothing but the best for them.

The last thing you want to do is get yourself into financial difficulty by purchasing a car you cannot afford.

You need to look at your budget and factor in benefits like the Child Tax Benefit, which can help offset the costs of having a baby.

After you have worked out your current budget and allocated funds for an emergency fund, you will know how much per month can go towards a new car payment.

Reviewing your credit

You are probably preoccupied with the idea of being a parent but spare a few minutes to review your credit.

As a parent, you need to take every precaution to keep yourself safe both physically and financially, so make it a habit to always check your credit score; it’s free and only takes a few minutes.

To secure the most competitive car loans, you need a credit score of over 680. If your score is under 620, you fall into the subprime category, do not put off fixing your credit.

Interest rates are going to start rising soon, and if you have a low credit score, it causes everything more expensive, and you need to make every dollar stretch.

How to access the best car loans

Since we are on the topic of getting the best value for your money, you will need to access the most competitive car loans based on your financial situation.

The best way to access these loans is with the help of a car dealership. While everyone has been conditioned to shop online for great deals when it comes to great car loans, your best option is a local brick-and-mortar dealership.

These establishments will be able to secure loans at the most competitive rates and will have vehicles that will meet the growing needs of your family.

You should contact the dealership today, interest rates are going to rise soon, and you don’t want to be stuck with a high-interest rate car loan.

We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 

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