A Mum’s Guide to Finance

Trying to hold down mum-life is no easy task. Throw in getting the kids to school, raising a newborn, and all the other parenting perks, focusing on the things you need may rarely cross your mind. When was the last time you drank a hot cup of coffee, let alone think about getting your car sorted?

Juggling your mum responsibilities naturally always comes first. Getting your head around car finance may seem like a step too far! Fortunately, that’s where I come in.

When affording a new car seems impossible, car finance may be your best chance at getting the wheels you need to get to your next big day out. Nowadays there are even car financing options for bad credit.

 

Know your budget

Never knowing which car will suit your family best is tricky when navigating the motor market. Safety, size and cost-efficiency are all essential things to consider.

With so many different models and brands to choose from, the budget is definitely worth thinking about before visiting a seller. When pennies are tight anyway, blowing all your cash on a non-reliable vehicle isn’t going to make you feel any better about life later on.

Think about how much you can afford to spend and stick to it. Having a budget in mind will help you when applying for car finance. Try doing this before you get to the dealership, so you know what finance options are available before haggling with a salesperson. You don’t want to get caught out on the forecourt. Having children can be stressful enough!

 

Instant loans

Tested, tried and true. Probably the most popular way of financing a car is taking out a personal loan. Borrowing money from a lender, bank or building society can allow you to drive away with your dream car instantly.

Perfect if your child is about to start school and your current vehicle isn’t quite up to the job!

So if you would like to own a car fully and for a long time, a personal loan may be your most straightforward solution. Especially if your bank balance is a bit tighter than you would like, and don’t have the money for a deposit or finance deal.

 

Don’t be afraid of your credit score

Having a bad credit score doesn’t mean you will be turned down for car finance. Nowadays there are a lot more forgiving finance companies and lenders out there willing to give you a chance.

Good credit does give you more options, in the long run, however, bigger loans may be unaffordable. So make sure you are confident in your repayments before signing on the dotted line.

If repayments are something that plays on your mind, get in touch with your finance company or lender. They may be able to arrange a deal where you can return the car or pay off your loan early.

 

APR vs monthly instalments

Never be afraid to ask questions. Looking at the finer print in any agreement is always worth doing before making a deal. Plus, it’s a great life lesson for the kids!

Knowing the difference between APR (annual percentage rate) and monthly instalments will save you money. Often car dealerships like to draw you in with attractive incentives, that aren’t always as good as they first appear.

So, find out how much you are expected to pay. APR is how much you will pay over the course of a year, rather than a monthly rate which adds up!

 

Deposit schemes

Getting a payment down can often make us feel like we have made a good dent out of the repayments to come.

Asking a finance company, lender or dealership about a hire purchase will have fixed monthly repayments. So, if you like to know the exact amount of money going out of your account, this might be the one for you.

Until the monthly repayments are made, the seller still owns the car. Credit is secured against the vehicle, so if you no longer want it, you will have to settle the outstanding debt first.

If the idea of not fully owning a car puts you off, stick to a personal loan. Hire purchase loans are suited for people starting a family, those that like low-risk credit and if your circumstances are suited for monthly repayments.

 

Whatever your circumstances, getting a car on finance is not as complicated as it may seem. Life can be stressful enough without having to worry about your car too. So if you are starting a family or are already in full swing Mum-life, dont break the bank! Check out what finance is available to you.

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