Struggling with no Disposable Income: How to Balance Car Financing and Insurance Payments

Purchasing a car is the ultimate rite of passage for any youngster, and something that should traditionally become more manageable and affordable as you age. This is only so long as you have the financial resources to meet the associated financial obligations, however, which in turn requires you to have both gainful employment and disposable income. Today’s generation of adults are struggling to generate the requisite levels of disposable income to live comfortably, however, as a stagnating national wage and rising inflation have left more than one million modest and under-achieving earners in the nations’ capital alone.

Balancing your Finances: Owning and Insuring your Vehicle

In general terms, the cost of car ownership is split between managing monthly finance repayments and insurance premiums. While regular and irregular maintenance must also be funded, these costs are sporadic and do not place as great a strain on consumers. With this in mind, let’s consider the following steps towards balancing your auto finances: –

  1. Select a Modest and Fuel Efficient Car

Not everyone is happy to compromise, but this is often necessary in the quest to manage the cost of vehicle ownership. In order to purchase, own and operate a vehicle in the current economic climate, you will be forced to select a modest and fuel efficient model that minimises annual costs. Identifying a quality used car is a good place to start, while lower performance vehicles may also help in the drive to reduce expenditure. Not only are these cars typically more affordable, but they are more likely to carry lower insurance premiums.

  1. Enhance your Skill-set and Partner with a Viable Insurer

In terms of insurance, there are a number of innovative ways in which you can reduce your monthly and annual costs going forward. While some of these may require a small, short term investment, they will enable you to make long term gains. In addition to purchasing a practical and low cost vehicle, for example, you could also enhance your skill and standing as a driver by completing an advanced driving test. Another important step is to partner with a reputable insurer such as AXA, as such outlets offer comprehensive and flexible coverage that help you to save money without compromising on value.

  1. Choose a Flexible Car Financing Company

On a similar note, it is also important to secure the most affordable car financing deal possible in the current climate. While lenders have been forced to develop a more sympathetic outlook in recent times, as a consumer you must capitalize on this to compare the market and negotiate a financially prudent deal. Regardless of your existing credit score, you should prioritise firms that welcome struggling applicants and offer more flexible repayment terms, as this offers you an insight into the philosophy of the company and affords you the best opportunity to strike a manageable repayment plan.

Have something to add? Share it in the comments.

Your email address will not be published. Required fields are marked *