How to Make Smart Financial Decisions When Buying a Car
30th June 2017, Posted by : Michael
Planning to buy a car? You must have given ample thought to the model you are going to purchase its features, your requirements etc. but have you spared a thought to the cost of ownership. Yes, the basic questions- how much will it cost? There are many important aspects which you need to consider.
Buying a car will be an investment which will last over a period of time. Due time needs to be given before you take any decision. Important factors you must consider while buying a car.
What is your budget?
The first factor to consider is the budget which you have before going in for the car. Be it a new car or a second-hand car, there is a host of options which are available today. But apart from your needs and requirement from the car, the major factor that continues to influence the car buying is your BUDGET.
Maintaining a car is a costly affair, unlike motorbikes. Not only the running costs like fuel expenses and the service costs but the upkeep and other periodic costs are also associated with it. These costs increase with the second-hand vehicles. They usually require more trips to the garage than the standard new car.
For example, if your car is to be used over long distances, you need a car which has a good mileage. In case you are going in for a used car you need to check on the condition of the car. Whether it involves heavy repairing work? For assessing the condition of the car, you might have to consult a car mechanic or an expert in the field.
The financial options
You need to evaluate the various options available for financing your car. In case you already own an existing vehicle, then you need to decide whether you would like to avail the exchange which almost all car companies offer. Otherwise, you may want to sell the same and avail the funds towards buying the new one.
You need to decide whether you would avail a loan. If so then the interest rate of the car loan, the tenure of the same. You must know about the down payment.
If you are planning to finance your car from a bank, the EMI of the loan needs to be ascertained. Try out the different options and go for the lowest possible rate of interest. This would have a term effect on your finances in future. So you need to be careful before taking any loan.
Other factors include factors in regard to maintenance. The servicing of the car is an important factor. You need to check in on the network of service stations. If you are a frequent buyer of cars, you might also have to consider the probable resale value of the car being bought after a period of time.
One should bargain with the dealer to get the maximum possible discount on the model and should not hesitate to get quotations from different dealerships.
Money could also be saved by getting basic accessories complimentary and many dealers offer it as such to sweeten the deal!
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