Not many of us are fortunate enough to be able to pay for our vehicle in full using cash. As a result, we usually have to resort to taking out a loan in order to finance our purchase. A few of you have asked me to write about our own thought process when we got our car last month, so here’s me continuing this as Part 2 of my previous post here.
The first thing you’ll want to do before you decide to even go ahead and get that car, is to first check your finances to ensure you don’t end up stretching yourself too thin with loan repayments later on.
Liquidity vs. loan interests – What can I afford?
Depending on the Open Market Value (OMV) of your car, you can get maximum financing of up to 60% or 70% of the OMV. If the OMV of the car …