Ready for a New Car?

Taking a Payment Test Drive

​I am so blessed to own my car. It's old but works well with minimal  maintenance cost. Because I haven't had my own car payment in a while, the thought of a new five- or six-year payment commitment is scary. My main goal in every decision I make is to make sure it is financially sound - how will it enhance my financial independence and goals?  With that in mind, I asked myself, how can I be certain that I can afford the car I want? The first step to finding a solution and resolving my fear of car payments was that I prayed. I prayed for financial wisdom. I prayed that I continue to have income and that I will also find additional ways to growth financially.  Furthermore, I prayed to have the right plan in place so that when my car "bites the dust", I will be able to get a new one. ​

With Faith comes clarity - What if I literally put the cart before the horse by starting to make payments to myself while my car is still running? Let’s say I do some research. First, find a car I like (most dealership websites will have the approximate payment amount listed).  Next, call my insurance company's customer service or use the online quote tool to see how much it will cost to add the new car and remove my old car from my plan.  For this example, I will use a car payment of $600 per month and an increase in insurance of $100. This means that I will have to pay an additional $700 per month to get the car. Now, let's consider if my budget can do that. If I'm NOT able to save $700 a month, I would need to find a cheaper car (A GAL GOTTA EAT)! If I am able to save the payment and maintain a comfortable lifestyle, the money is still available for emergency use.  Then when it's time to buy the car, I will already have made several payments or in the best-case scenario - I could possibly pay it off.  The reward is being confident of what I'm able to afford ahead of time. Additionally, if I use the money saved to make the down payment, I could opt for a lower car payment or a shorter financing term which will likely get me a better interest rate on the car loan. I can also just keep the savings as back up for a rainy day or spend it on a road trip in my new car. Just imagine, if my current car keeps on ticking for five more years to make this goal even more successful - that will be icing on the cake! 
It is amazing how prayer and planning can make a scary decision easier. If you need help with making a decision or need an accountability partner, let me know. I am now a certified goal life coach. Together we can make things happen. ​Much Success, Carla