Knowing how to handle debt will prevent the joy of a new car from quickly turning into an ordeal.
The road to buying a car does not end with choosing the personal or family vehicle you are looking for, unless you have the cash. Financing is generally used. Knowing how to handle debt will prevent the joy of a new car from quickly turning into an ordeal.
To access a credit you must have between 20% and 35% as a down payment. For a $ 21,000 car, at least $ 4,200 (20%) will be canceled and the remaining $ 16,800 will be financed (not including insurance and tracking device). If it is programmed for five years, the interest would be $ 7,712.60 and the final cost would reach $ 28,712.60. If the debt is for three years, the interest would be $ 4,462.97.
Economic analyst Héctor Delgado suggests that to buy a vehicle we must set a budget.
“Having the budget that one is going to buy the vehicle because many of the cases and it is what usually happens, we go to the dealership, we get excited and we try to acquire a credit or a car with a price that is quite difficult to pay, so it is quite important before going to a dealership to at least have an estimate of the budget that I can access ”, he said.
Something very important before financing the car through a loan is determine how long the vehicle will be paid for, warns Gabriel Rovayo, president of the consultancy Roadmak Solutions and head of EFQM. He remembers that in Ecuador these credits are usually up to five years. But It is better not to spend three or four years on the issue of interest and depreciation of the car, dice.
Is it worth taking a credit for 5 years or more to buy a vehicle? The experts at Daily Finance suggest that this can vary, as there are conditions to be aware of: if they offer you a very low rate or something like “0% financing”, it shouldn’t be an inconvenience. A second reason is that if you plan to keep your car for more than 6 years, it may also be worth it.
It can be a bad idea when all the hidden costs of owning a car are high. It’s one thing to pay off your vehicle credit and do math that may make an effort to take the credit, but when you find that between maintenance, gas, taxes, and insurance a lot more and your paycheck might not be enough. (I)
Paul is a talented author and journalist with a passion for entertainment and general news. He currently works as a writer at the 247 News Agency, where he has established herself as a respected voice in the industry.
