Travelling in your own car is very convenient. You get full control of your trip. However, acquiring one and maintaining it in great condition does not come cheap. It is probably one of the most expensive items to buy, probably second to a house. Make the right decision in buying a car by considering all the necessary factors.
A car purchase is a huge investment. It usually requires a down payment which could be up to 20% of the total purchase price, needs periodic maintenance and adds liters of fuel as a frequent expense. Surely, it is comfortable to navigate the road with a car under your control, use a mileage tracker app and explore the places you want to go. But, this pleasure and freedom require a hefty price to pay which is why you need to evaluate this large purchase, carefully think of your choices and choose the right car that fits perfectly with your lifestyle and preferences.
The first question that always comes to mind is the purpose of owning a car. Is this for personal or business use? Do you desire to drive over rough roads or go on joy rides? Do you have a family to bring with you or children to fetch at school? Are you buying it as a reward for your retirement? The answer to these simple questions can affect car models and specifications you need to look into.
The next thing to recognize is whether you can afford it now. Certainly, you can easily mortgage a car over a five-year loan at the best interest rates local banks and other financing companies can offer. But, you have to ensure you can pay on time on top of all your existing obligations without borrowing even more. If not, it is not wise to force yourself into buying a car today unless you need it for business. It is better to defer your purchase a year or more rather than be buried in debt all your life.
Also, purchasing power has its limits. You can be financially capable but only to a certain extent, which is why you have to consider whether to buy a brand new car or a used one. Each has its own pros and cons, especially with the difference in price, so take into account all the quantifiable and qualitative factors that will affect your decision. These may include model year, mileage, fuel economy, capacity, engine reliability and other equally important elements.
Now that you have established your financial status and cleared your way to buying your own first vehicle, the next thing to process is to arrange your payment. If you opt to take advantage of financing options offered by financial institutions, ensure you read the terms and conditions and understand the financing arrangements, including the payments on the purchased vehicle.
Each financing company provides different interest rates, adds varied charges like processing fees, and drafts policies laying down instances where it can repossess your car when a single or series of payments remain unpaid. Shortlist these service providers, tally the total costs and pick the right one that proposes the best deal you can get. If you still have a surplus in the next three to five years, you can even shorten the repayment period so you can minimize the interest expense.
You can give yourself a lift by buying yourself a gift, and a car is a perfect reward for all the hard work you’ve done. Just keep in mind to check first what you want it for and how much you are willing and capable of paying. If you pin these down, you can breeze through the process of buying your first vehicle.