2020 has been a financially challenging year. As the pandemic has forced many businesses to shut down – temporarily or permanently – households have become strategically frugal to survive.
The good news is that many households have been able to manage their level of debt during the quarantine. Unfortunately, setting financial priorities also means postponing all non-immediate expenses.
Say your vehicle needed some repair work done at the beginning of the year. You might have been tempted to delay the repair to avoid putting too much pressure on your budget. Yet, you can’t ignore mechanical issues for long without consequences. Now, the vehicle is unsafe to use and too damaged to repair. What are you going to do?
Talks of a COVID vaccine are hopeful. However, even with a vaccine, the economy isn’t going to recover overtime. In other words, you can’t afford to purchase a new car now. You need to make sure you can build up your financial stability and bring your budget to a healthy post-pandemic level.
Consider financing solutions that work for you
Managing debt in quarantine has not been easy. For many American families, the household budget is on a knife-edge. The pandemic outbreak has paralyzed the US economy, and many people have been relying on social welfare services as a matter of emergency. Unprecedented government support and tight budgeting have been crucial in avoiding a debt crisis. However, signing up for financing options that don’t match your current situation could drive debt. You need to look for money lenders such as New Roads Auto Loans that accept bad credit history. Indeed, these options are more likely to have a suitable payment program in place.
Can you postpone the purchase?
You can’t go long without a car. However, if you can find ways of working from home, you can delay your car purchase. As a lot of grocery stores offer online shopping delivery, you can reduce your commute. Postponing the purchase can be a good idea if you’re going to save. You can’t save enough for a brand new vehicle. However, in a few months, you can save for a second-hand car. How can you dial up your frugal budgeting strategy?
If you’re a homeowner, you can switch to a mortgage to reduce your interest rates, giving yourself some financial breathing room. Considering a new energy provider can also help save costs during winter.
Can you sell the old car?
Your car may not be safe to drive anymore. However, it doesn’t mean you can’t sell it. Indeed, did you know you could still make money out of your car parts?
A platform such as Parts Beast lets you sell parts for a small fee. Alternatively, you can also reach out to your local garages to discuss a parts deal.
With old vehicles, you could find that working parts are valuable because they can be hard to find. Additionally, car enthusiasts are happy to buy second-hand parts to fix or upgrade their own vehicles.
For anyone who’s been struggling to make ends meet during the pandemic, unexpected expenses are an unpleasant surprise. However, when it comes to car costs, you can lessen the financial burden on your budget. Buying a new car on a traditional car loan is a dangerous gamble. However, options that suit your post-pandemic budget can help you navigate this dilemma both in terms of financing or saving.