The right car budget isn’t necessarily what a lender will let you borrow – it’s what comfortably fits alongside your other financial priorities.
When choosing a car, it’s easy to focus on the sticker price or whether the monthly repayments look manageable.
But the true cost of ownership is much broader.
Look beyond the repayment
Your budget may also need to cover:
- Registration and insurance.
- Fuel or charging.
- Servicing and repairs.
- Tyres and other maintenance.
- Depreciation over time.
Finance matters too. A longer loan term might reduce the monthly repayment, but it can increase the total interest paid.
And there’s another consideration if buying property is on your radar: taking out a car loan can affect how much you may be able to borrow for a home.
So rather than starting with “How much car can I buy?”, it may be better to ask “How much can I comfortably spend without putting pressure on my other goals?”
Planning a car purchase? Reach out to explore your finance options and see how a vehicle loan could fit within your broader borrowing plans.
