Figuring...

that below – but you’ll need to put down a significant amount for down payment, say 20 percent at least.

What makes this option more economical is the add-on rate for the duration of your auto loan. It’s different between banks and also depends on your relationship with the bank, but if you’ve been a loyal patron and know the manager personally, you can haggle the rate down to as low as 24 percent. That’s more than half of what the dealer offers. You can also negotiate the price of chattel mortgage and insurance, and maybe even spread out the payment over a certain period.

If your salary does not reflect the amount required for the loan, get yourself a co-maker. This could be a wife, parent or even a friend. A co-maker is someone who lends his credit by joining in the principal debtor’s obligation, so as to render himself directly and primarily responsible with the principal debtor. In other words, the co-maker will pay the car loan if the borrower doesn’t, but you don’t get to take home the vehicle unless you live with them.

Spouses are automatically co-makers of their significant other; banks require this arrangement. If legally separated, a waiver is necessary before the loan can be processed.

Ownership costs

Let’s say the monthly amortization is easily covered by 10 percent of your salary, the ugly truth is, that’s the least of your worries.

Warranty of brand new vehicles will save you money but it only covers major components that break down due what automakers call ‘material fault’ says Jay Martin, Service Manager of Hyundai Commonwealth.

Oil changes and the consumable parts up for replacement like brake pads, air cleaners, oil filter, etc. will be out of pocket. Prepare to pay for oil, filters, and various consumables during periodic maintenance services.

The older your vehicle gets, the more care it needs. After the first two years, you’ll need a new battery (around 13,500), swap the front tires for a new pair (roughly 12,500 each) and new brake pads (15,000 each for the Accent and you’ll need four in front). Three years and beyond, you’ll have to pay for vehicle registration, which is about 14,500 per annum, plus the pricey TLC (tender loving and care) it will require.