There are different types of cars in the market. You can buy a car based on your financial capability. Most people purchase a car on financing which lets them buy their favourite vehicle even if they do not have sufficient money. Financing a car means that you are borrowing money from a financing company or a private lender to purchase a car from a car dealer or a private party. The borrowed amount has to be repaid with interest at an agreed installments.
Financing a car is a huge financial responsibility which should be taken with careful consideration of the financial obligations. If your earnings are not consistent to manage your monthly expenses, you need to think twice before financing a car.
A car is a liability and they depreciate in value over time. Opting for car financing is not a viable solution when you already have another debt running. You can go for car financing when you generate sufficient monthly income to pay off the debt.