The year we turn 16 is a special one for all of us. This is the year we are finally considered grown up (at least to some extent) by our families and the law, because this is the year we are allowed or given the privilege of being able to drive. And all that means just one thing… finally, we can own our very own car!

Financing a car of your own is not an easy task, as it requires not just money, but a lot and lot of hard work and commitment beforehand. Financing a car can be done through your own savings (which again brings back the points of hard work and commitment) or it could be through a loan from your family, your company, a bank or some other third party. Financing a car through your own savings is something that can, and should, make you proud. Saving up all that cash to pay for the first down payment of your car will mean that you can show to the world that not only are you the proud owner of your own set of wheels, you got to this level because you worked for it.

There’s nothing wrong in getting a loan for financing a car, even if it is from your parents. Most of the time, parents are willing to help out with financing a car if it’s your first. Working in a company for more than a certain number of years mean that you are eligible to apply and receive a loan from that company for the reason of financing a car, and a stipulated amount will be cut off from your monthly salary for a certain number of months until the loan is paid off. More often than not there is some kind of interest rate that applies to this loan, but the rates are generally much lower than the going rates in the market. Getting a loan or a lease from a bank is another story. For one, financing a car through a loan or a lease from the bank could be a hassle for the sole reason of the interest rates involved in them. Banks usually charge pretty high interest rates (which have only risen higher in the present economic situation), and so if you are financing a car through these means you will end up paying the bank almost double the amount of the loan or lease you have received.

As with all other things, think about all your options available and decide on which suits your pocket, lifestyle and budget the best. And enjoy you car!

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