I need a new car!
 |
| Our locally run Honda (Rowes) dealer, they have been here for year and the family who run it have an exemplary reputation. |
I’m a great fan of Martin Lewis. He talks of good debt and
bad debt and delineating between the two. A bad debt would be a credit card
bill caused by a holiday or non-essential purchases. Good debts are those which
are planned for, affordable and the only ones we have until they are paid off.
I would put student loans into the bracket of good debts as an education will
enhance your life chances. I would also describe a mortgage as a good debt as
it’s still the most economically sensible way of keeping a roof over our heads.
You may be surprised at this but I would also put car purchase into the bracket
of a good debt. Our cars get us to work every day and most employers expect you
to have your own transport and for you to be reliably on time every day.
I have to face up to the reality that I need a new car and
I’ll need to sensibly budget for one.
I’m going to use the example of best new car deals from Honda UK and Honda finance, just because it’s in my top trumps
of cars I’m interested in. I’ve got my
beady eye on a Honda Jazz. A snazzy Jazz as I call them. It’s the right size
and the right price for our budget. I’ve looked into the two ways I can buy my
Jazz. I can think long term and go down the route of usual car finance and keep
it but in the future, I will find myself
in the same position I am now. There’s another really sensible and affordable
option which is especially useful for families who need to change their car
every few years. Honda have a 0% interest finance package where you can agree
annual mileage and a guaranteed future value of the car and a monthly payment.
When you have a budgeted monthly figure, and you have worked out the running
costs of tax, insurance and fuel ,then you will know exactly how much you are
paying every month and you can budget accordingly.
I will be using car finance to buy the car and I’ll tell you why. By the time I save for a car, my own will have depreciated so much it will be worth nothing at all on a trade in. Secondly, and this will surprise you, I always buy a new car! Again, I’ll tell you why. At one stage of my career, I was commuting for two hours a day. I know you’re thinking ‘so what?’ but as a woman driving on my own, having a reliable car was essential to me. From then on, I had a new car. I looked at my monthly payments as peace of mind with a warranty and break down insurance all in the same deal.
I will be using car finance to buy the car and I’ll tell you why. By the time I save for a car, my own will have depreciated so much it will be worth nothing at all on a trade in. Secondly, and this will surprise you, I always buy a new car! Again, I’ll tell you why. At one stage of my career, I was commuting for two hours a day. I know you’re thinking ‘so what?’ but as a woman driving on my own, having a reliable car was essential to me. From then on, I had a new car. I looked at my monthly payments as peace of mind with a warranty and break down insurance all in the same deal.
 |
| Honda Jazz - the most fuel efficient car in my price range. |
