Buying a car is an exhilarating experience. You are taking your first steps toward more independence and are making a financial investment for  your future. However, once you use a car payment calculator, you have to find ways to fund your car. You could go the traditional route of using a bank but this might not be financially viable on a small budget. If you want to buy a new car, you will need to think outside of the box, so outlined below are some creative ways to finance a car.

Look into crowdfunding

You might have heard about crowdfunding with regard to charities using it to bring in more money or people using Kickstarter campaigns to create new and quirky products, but there are platforms online that are geared specifically toward loans.   These crowdfunding sites need basic information such as your name, age, loan amount and your ability to repay the loan. You can also sign up to personal crowdfunding sites and create a campaign to share with friends, family and the general public. This is a great option for people with bad credit ratings or no credit history at all, as the personal crowdfunding sites do not need these details and you can use the money that you raise for any purchase you like, such as a new second-hand or new car.

Ask friends and family for money

If you have been going to car auctions in Gauteng and have seen a car you particularly like coming up for auction, then you could ask your friends and family for a loan to buy the car. While this type of debt is tricky, as it involves family, it can be an effective way to get money for that car you have your eye on.   You will need to remain on good terms with your friends or family members who have loaned you the money, and be prepared to pay them back on time and at the interest rate of their choosing. You will avoid paying processing fees and high interest but it is important that you try to repay the money as you would with a bank. If your friends are willing to loan you the money, you have to accept the responsibility of repaying them.

Use your talents to raise money

If you have a unique talent, such as being able to write amazing poetry or the ability to draw and paint masterpieces, you can tap into this talent and sell products you have created to raise some money. This could be anything from offering commissioned portraits to freelance blogging for companies.   Using your own talents to raise money is an effective and fun way to buy a car. You will be able to pay upfront with the money you have raised or at least offer a down payment to your bank after figuring out your affordability with a car payment calculator. Be sure to put the money you earn from your talents aside in a savings account, so you will not be able to access it to spend on things such as nights out or new shoes. Keep it to put towards your new car.

Look for a private sale

If you have some money saved up, but find that car dealerships are too expensive, then you should look for a private sale. Private sales allow you to negotiate with the owner on the price, and you may find that you can get a much more affordable price from a private owner who is looking to sell their car urgently.   While this is not a way to fund your new car, it is an option to look into once you have the money. You will be able to save a significant amount of money and avoid jumping through all the hoops that dealers usually require you to jump through. Be sure to do a full inspection of the car and ask the seller for all the right documents before you make a purchase. Bring along a mechanic or a friend who knows about cars to perform the inspection, so you know everything that is wrong (and right) about the car.

Sell your stuff

You have heard the saying before: ‘One man’s trash is another man’s treasure’, and when it comes to funding a new car, selling your old and unused stuff can be a great way to raise funds. This is an option that does not take much effort, aside from sorting through your old belongings and deciding what to sell.   You can set up an account on a platform such as Gumtree and post your items for sale or you could organise a garage sale and post flyers around town and on Facebook to alert people to the sale. Be sure that what you are selling has been well looked after and that the person buying it will be receiving good quality items. If you are selling old clothes, be sure to get them dry-cleaned before the sale and make sure that old electronics are still in working order before posting them online to sell.  

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