Key considerations when buying a new car

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A car investment is an expensive one and therefore it’s essential that you do research and make an informed decision lest you regret. You can’t just wake up one day and decide to buy a car without doing due diligence. After all, getting value for money is something that we all need. In light of this, let’s take a look at the key considerations when buying a new car.

Intended period of ownership

The length of time you intend to keep your car should inform the type of car you ultimately buy. Gone are the days when we bought a car and disposed it after a few months. The difficult economic conditions means that a lot of people are currently keeping their cars for a long period of time. In this regard, it is highly recommended that you take your time, carry out proper research and ensure that the car you ultimately buy meets your needs and that it gives you value for money.

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Cost of owning the car

Ordinarily, individuals take into consideration benefits, features as well as price tag. This is acceptable without a doubt but you also need to consider the cost of ownership. How much will it cost you to maintain the car? What about repair costs and insurance costs? Ensure you buy a car that you won’t strain maintaining. If you are not sure about your choice, there are a number of comparison sites that can help you make an informed decision. They project such factors as financing costs, insurance, depreciation, fuel and maintenance. From the information given you could be able to choose a car that you won’t face difficulties maintaining it.

A row of new 2010 Toyota Prius hybrid vehicles sit for sale in the car lot at the Toyota dealership in El Cajon, California March 9, 2010. U.S. safety regulators and Toyota Motor Corp dispatched investigators to San Diego on Tuesday to inspect a 2008 Prius that sped out of control on a California freeway a day earlier. REUTERS/Mike Blake  (UNITED STATES - Tags: TRANSPORT BUSINESS) :rel:d:bm:GF2E6391LGF01

Fuel efficiency or economy

With difficult economic conditions, people are keen to buy a car that is fuel efficient. You don’t want your fuel costs hitting the roof hence making it almost impossible to use your car with leisure. A car that is fuel efficient gives you peace of mind and you don’t have to routinely wonder about where you will get the money to meet the fuel needs of your car. Take into consideration the size of the tank, the average cost for driving say 25 miles, expected annual fuel costs and so on and so forth.

Choose a reputable dealer

It’s not always about the price. A lot of people make the decision to buy a car solely on price while ignoring other factors. However, this can end getting you into a quandary. The reputation and success history of a car dealer is instrumental when buying a new car. Go for a dealer that respects your choice and gives you professional advice especially if you are a greenhorn and have scanty information about a given make of a car. The dealer you settle for should have different makes and brands, spacious showroom, warm customer personnel, a solid reputation and one that treats you like family. Go for a dealer that adheres to best business practices and is keen on forming long term relationships as opposed to making a quick sale.

 

 

Tips to buy a new or used car

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We all grow up looking forward and dreaming of the day we will buy our own car. It is something that is engraved in our mind and which more often than not holds a lot of importance to us. Technically speaking, we can say without any fear of contradiction that an investment in a car is the second most expensive endeavor that a person undertakes besides buying a home. With this in mind, it’s imperative that you make a wise decision lest you end up using a good chunk of your savings and get a raw deal. With that said, what are some of the tips that you can utilize to buy a used or new car?

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Scrutinize your budget

Just like mobile phones, cars come in different designs, price ranges as well as customized functionality. In light of this, it’s essential for you to carefully scrutinize your budget and go for a car that meets not only your needs but also your tastes and preferences. The general rule of thumb is that you should be able to afford the car you endeavor to buy. The right estimate or sound investment decision would be not allocate more than 25% of all your monthly household income. The amount should be sufficient to cover an auto loan while ensuring that you do not get into bad debt.

Narrow down the list of cars you wish to buy

Chances are that you already have a rough idea of the cars you wish to buy. While driving around, you might have spotted a number of cars or been recommended some cars you should consider buying. Narrow down the list by looking at the car features, fuel efficiency, price and any other factor you feel will help you get the car you yearn for at the budget you have. Don’t make a rash decision but rather take time to acquaint yourself with the features of the car among other important factors before you make the final decision.

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Make a decision based on your budget as to whether you wish to lease, buy a used or brand new car

Based on your budget, weigh the advantages and disadvantages of buying a used car, a brand new car or the lease route. While leasing might get you a brand new high end car, the fact that you don’t fully own the car or are restricted with the leasing regulations will be a major disadvantage. On the other hand, you might get a used car at a competitive rate but you will be disadvantaged in the sense that you will have to pay high interest rates, the warranty will be slightly shorter and in certain circumstances, you won’t be privy to the vehicles full history. It is therefore important that you weigh all these merits and demerits before you make the final decision to buy a car.

Work on the financing option

If you don’t have the total amount upfront, you might consider car financing. In essence, car dealers might not be that interested to sell you a car on cash basis but would rather prefer to sell it to you on loan as they end up getting attractive kickbacks in terms of a flat fee or a commission. Do not be surprised if your car dealer proposes attractive interests if you wish to buy the car on loan. Before you settle on dealer car loans, make sure you make a comparison with what a bank or credit union offers so as to make an informed decision as regards financing.

Negotiate

Most of the time, you might be tempted to rush into test driving as a result of the tempting promotions from various car dealers. Do not make that mistake. Put your negotiation skills to test especially if you wish to trade in your old car and buy a brand new car. After all, it won’t hurt saving a few bucks if you negotiate from an informed perspective. Do your homework well and you won’t regret when it comes to buying a car!