Published on July 28th, 2017 | by Jones0
Important things to consider before buying a car
Are you thinking about buying a new car? It’s important to know the facts about buying a car before making the purchase. Your car is unfortunately not an investment, instead, it’s a depreciating asset. So, that means it loses its value over time. On average, new cars lose over 20% of their value in their first year. But looking on the bright side, if you can find a one- or two-year-old car that has been kept in good condition, you’ll get a big discount on an almost-new model.
Buying a car can be expensive. After your home, a car is typically the most pricey purchase you’ll make. And choosing to buy a vehicle isn’t a decision that can be made over a weekend. You should think everything through first.
So, to avoid making a bad decision, here are a few things you need to consider before buying your car.
Do you have a budget?
Whether you buy a brand new vehicle or a used one, it’s important to work according to your budget. Because, while you may have your heart set on a specific car, you might not be able to afford it. So you need to set your budget and look for a car you can afford. If you know exactly how much you’re able to spend, you can set a budget according to that. It’ll help you avoid overpaying for a car and getting yourself into financial trouble.
Now it’s time to take out your calculator and do the math. Do you know what your income and expenses are? Base your income on what you actually take home and not your gross pay. And from that you can work out how much you can afford and want to spend on a new car. Remember, just because you can afford it to buy an expensive vehicle, it doesn’t mean you should.
Decide on the car
There are many used cars of about two or three years old on the market. So that makes a certified pre-owned car more attractive. Besides, there are more affordable cars available than ever before. You have more car options, regardless of your budget. Buying a used car may have you pay a higher interest rate and have a shorter warranty period. But looking on the bright side, you’ll be able to get the best car for your money. If you can afford it to buy a new car, you’ll get the full warranty and will likely pay a lower interest rate. You’ll also often get free maintenance and roadside assistance, depending on where you buy your car, of course. You should decide which type of car works for you by taking a look at your budget.
Conduct proper research
It’s always best to research the cars that have caught your eye. You should check whether they fit your budget. Visit specific car websites to assess the features that are important to you. If you see one you like and which fits within your budget, ask for a quote from the dealer. You can also take a look at your local car magazines to see what’s available in your area. It might be a good idea to look for a car that costs at least five percent less than your monthly budget. That way you can give yourself room to cover the maintenance costs of the car.
Familiarise yourself with all the discounts
Have you perhaps seen any discounts on cars? Take action and enquire about them. Car experts suggest that you wait until the end of the model year before buying a car. Dealers will likely give out bigger discounts as they clear lots for next year’s model. So it’s important to make sure you know when dealerships are giving discounts.
Consider your ownership costs
By now you’ve probably shortlisted your cars. So work out if each of them would fit into your budget by estimating ownership costs. When you do your research, you’re likely to come across websites that would provide you with a general overview of ownership costs for your area. The numbers will vary, depending on your personal situation. But if you want to be more accurate, why not do your own calculations? Ask for car insurance quotes and take a look at how much you should spend on maintenance.
Take your time to test drive
After you’ve done your research, reach out to the dealerships you want to visit and make appointments. Since most car shoppers keep their cars for a long time, it’s important that you take your time with the test drive. Make sure you really love the car. If you need more time behind the wheel, don’t hesitate to ask. Spend time in the car while it’s parked to adjust the seats and experiment with the controls. You should be comfortable with everything before deciding.
So, it’s time to spruce up your negotiation skills and go to your chosen dealership. Negotiate the deal as if you might just walk away. Shopping for a car is a fun experience. Make the best of it.