Quick Tips To Save Money When Buying Your Next Car
Buying a vehicle is a big investment no matter whether it is brand new or used. It is commonly the second biggest investment after the home. It is a big decision to make.
New cars are easier to purchase just because the transaction process is a bit more streamlined, and the manufacturers as well as dealers have standards before letting it be sold.
Though that doesn’t mean you shouldn’t get it checked as well. For used cars, it is essential to get it checked thoroughly, and that you know the ins and outs of purchasing a car. You wouldn’t want to run into any problems down the line costing you more than what the car is worth.
It takes much consideration, time and research if you want the best out of your money. Many choose to purchase a used car because depreciation value is far less than a brand new car.
Though those that purchase a brand new car will generally have that safe of mind. Whether you are saving for a home, holiday or other things, here are 6 quick tips to save money for making your next car purchase.
Budget
This of course will be your main factor. Decide on an amount that is realistic and that you can afford. It is easy to be tempted to take a loan for car slightly out of your reach.
Work out your finances and if you do consider taking out a loan, factor in the interest and time to repay it. It is best to consider paying the loan off as fast as you can otherwise you may end up paying a large amount on top of the true value of the car.
Consider this initial budget, and then deduct further costs such as maintenance, insurance, registration, fuel, and other running costs. This amount should be the maximum budget for the overall car as things may come up unexpectedly.
Vehicle
After you decide on a maximum budget, decide on the car you are after dependant on type and what the vehicle will be used for. Would it be for going A to B? Work? Family car? Towing?
Or even weekend car? There will be a multitude of options depending on your budget. Everyone have different taste and preferences. It will essentially come down to practicality and attractiveness.
If it is a family car you ideally would factor in space, safety ratings, and features as benchmarks. If it is simply for work or as a daily commuter, you would factor in fuel efficiency and engine size.
Check the market value of the model and compare it to similar models of different manufacturers to see if the price is justified. Also understand that European makes typically have a slightly higher maintenance cost.
Inspection
This is the most crucial step. If the car is brand-new, give it an inspection and most definitely a test drive. This could even determine whether to retract your decision on this model and go back to researching other options.
For a used car, make sure you ask the right questions and thoroughly check the car. Consider doing a car history check on the car to see if there are any flaws.
Test drive the car thoroughly checking all the features, functions, handling and power. There are extensive buying used car guidelines online that you should check.
Otherwise if you are still uncertain you can take the car to a local mechanic or even call out a mobile mechanic to inspect the car at the dealer or private sellers location. This will definitely save you in the long run, saving you any unexpected and unwanted maintenance costs.
Insurance
Make sure you grab an insurance quote from a trusted insurance company for the car you are going to purchase, so you know what cost you are expecting to pay.
This will also be handy and can be transferred straight away once you are happy with the inspection and test drive and have made the purchase. This is for safe of mind and would help you greatly in case of an accident while driving home.
Consider which insurance is most appropriate for you. Comprehensive will cover third party damages as well as your own car, while third party will only cover other damages, leaving your car to be repaired separately at your own expense. Make sure you also shop around for the best deals and options available.
For a car that has a typical higher value, then it is ideal to have comprehensive, while for a used car that is not worth as much, or won’t be driven often, consider third-party insurance. Purchasing insurance with any existing home or automotive policies that you already hold can also give additional loyalty discounts.
Car Loans
If you are considering taking a car loan, make sure to read the fine print and do a proper consultation. Definitely call around to check for the best rates and flexible repayment schedules. Interest amount can get quite high considering the value that you are going to get loaned.
Car Service
The last step that every car owner should take after purchasing a used car is to get the car serviced, changing the filters and fluids. Even if the previous owner stated that they just changed it recently, it is best to get this done yourself or professionally. Catching any minor issue can result in you saving on a bigger issue.
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Category: Car Purchase
