Jun 14, 2018

Planning for your big summer purchases

Summer is a popular time of year to start considering some major purchasing decisions. Here are some considerations before signing on the dotted line.

Summer is a great time of the year for so many reasons: school’s out, the weather’s nice, you can spend more time outside and many communities have fun activities or events throughout the season.

It’s also a popular time of year to start considering some major purchasing decisions! Housing listings and sales tend to peak in the summer months, when it’s easier to both show your home and consider moving into a new one. New cars can be appealing during the summertime as well; you can enjoy the snow-free driving conditions and maybe even plan a road trip or two with your vacation time.

All of these major purchasing decisions are important, but what should people consider before signing on the dotted line? We’ve asked Pat Neitsch, Motive Financial’s Assistant Manager for her expert insight to make sure you’re getting the most out of your new vehicle or home purchase.

Before you even consider what you’re buying, think of what’s motivating you to do so, suggests Pat. “You need to evaluate your lifestyle, where you’re at. Do you want to be closer to schools, are you looking in the country, in the city, to be closer to work, or trying to downsize? Whatever the case is, these are the questions you need to evaluate prior to making any of these big decisions. Where are you at right now?”

Incidentally, Pat has just finished moving as well, purchasing a house in the city for her family to be closer to her elderly parents. And as she’s just experienced, sometimes your motivation can help you make a lot of the important decisions ahead of your financial considerations.

However, beware of those sneaky hidden costs, wrapped up in the details around your new purchase that you might not have added to the final total cost of your investment. “There are a lot of factors that come into making a decision, and there may have been some that you’ve missed,” Pat explains. These can be things like the costs associated with insuring that amazing new vehicle, or heating that beautiful home in the winter months.

These incidentals can add up, and make what was a savvy purchase turn into one that cannot be carried. “You buy with great rates, and can get a great big house because the interest is manageable, but then what about this great big house that you then have to heat in the winter and cool in the summer?” she forewarns.

And it’s not just houses that may surprise you. Vehicles have similar hidden costs, like the price of premium versus regular fuel. “Have you seen the cost of that lately?” Pat exclaims. New vehicles also come with a higher insurance cost that your insurance provider may not initially explain.

Although these extra expenses can inevitably creep up on you, this is where the Motive team can really help out — by talking with you and digging deeper to understand your needs and offer tips for saving your money. Through having these conversations directly, we can ask you some of the questions that might help reveal the hidden costs you maybe haven’t yet considered — and then help you plan around them.

And even if you get caught up in the moment of the exciting idea, we’re here to make sure the practical and mundane details are looked after too. Get in touch with us today.