Personal Financial Planning, Fourth Edition

7. Buying and Owning a Car

Introduction

One of the first big-ticket items that individuals hope to purchase after graduation is a car. This usually occurs after they have saved enough money to make the downpayment for their dream car. It is exciting to own your four-wheeler, but before you rush to the car showroom, you need to think through the issues listed below before making such a major financial commitment.

• Ascertain that a car is necessary;

• Verify that you can service the car loan;

• Ensure that you can afford the maintenance costs of a car;

• Choose the make and capacity of the car;

• Buy the car from a reliable car dealer.

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