ExecutiveChronicles | What You Need to Know Before Buying a New Car | A car is a costly purchase, whether you are buying new or second hand. Therefore you want to get a good deal as well as a vehicle that will last you for some time.
The best way to make a smart choice and avoid the standard first-time buyer mistakes is to have a good idea of what you need and do some research before buying. In this article, we are going to outline all the main things you need to know before buying a car.
The Purchase Cost
What many people tend to forget is that buying a car is not a one-time expense. There is the price of the actual vehicle itself, but there will also be ongoing maintenance costs to consider.
When it comes to the purchase cost, the smart move is to work out a budget before beginning your vehicle search. Knowing what you can afford to spend will save you from wasting time on cars that are outside your range – and prevent you from being tempted to overspend.
Of course, most people do not pay the full price of a new car upfront. Financing the purchase is the more common option.
Financing means paying a deposit to the car dealer, which is usually at least 10% of the total price, and then paying off the rest of it in monthly installments. Therefore your car budget should be worked out based on your income from month-to-month, to be sure that you can afford these payments.
The repayment term is typically three years and you should not let the dealer talk you into lower monthly payments over a four-year period. That is because these will cost you more in interest.
Alongside the expense of buying the vehicle, you must also consider maintenance costs. These include tax and insurance, fuel costs, service charges, and replacing parts. A good battery will last for years, but parts like tires have to be replaced more often.
Furthermore, it will be a good idea to keep spare tires, wheels, etc as a precaution. Fortunately, there are tire and wheel finance options that let you spread these costs too rather than paying them all at once.
Repairs also come under the maintenance costs banner. It is inevitable that sometimes things will go wrong with the car that you cannot fix yourself, so finding out how expensive a particular model is likely to be to repair is something you should do.
Will the replacement parts be relatively cheap and easy to source? How likely is the car to break down frequently? These are the questions to ask before buying.
New or Second Hand
One way of reducing the cost of the actual car is to buy a used one instead of new one. However, that can end up costing you more down the line in repairs and maintenance if you are not careful.
It is safer to buy used from a car dealer rather than privately, but make sure you get all of the registration documents, as well as its road history. Other things to check carefully before buying used are the overall appearance, age, and mileage, as well as the condition of the tires, seatbelts, and windscreen wipers.
You want to know that it has not been modified to look newer than it actually is.
What You Need
Aside from the expenses involved in buying a car, you must also know what sort of vehicle fits your needs. Someone on their own in a city location will have very different car requirements to a person with a big family who lives out in the suburbs or the country.
Consider the space needed within the vehicle and how often it will be used to ensure you make the right choice.
This gives you a basic overview of what to consider to avoid a costly car error.