Buying a new car? That’s incredible! No, really. Being in the position to purchase a car that’s either out the box or second-hand is a major reason for celebration. It can also be the cause of many a sleepless night… 1 reason for this is because cars cost a small fortune. Some cost as much as a house. Granted, it would be a small house, but still, a house nonetheless. Another reason is because a new car starts to depreciate in value the moment you drive it out of the dealership. Both of these are grounds for why you’d spend a fair bit of time pondering carefully the hows and wherefores behind your purchase decision.
We’ve put together 4 main factors that you should consider before buying your next car.
The maximum price that you can afford
This is an obvious place to start, but you’ve got to know exactly how much you can afford to spend before you start your hunt. There’s very little point in looking at the latest Renault when a Ford that’s seen a few kms is where your budget is at. If you’re planning on getting vehicle finance, then use a calculator like this 1 to work out your monthly car repayments.
We also suggest that you factor in additional running costs, like your fuel consumption and monthly car insurance payments into your ‘total cost of ownership’. You might want to consider this car insurance because it’s comprehensive (which is a necessity for cars bought with vehicle finance) and your premiums will decrease every month, so you’ll save on a monthly basis. That should help you with your budgeting for sure.
The dealership that you’re dealing with
If you’re planning on buying a new or second-hand car through a dealership, you might find that the deal-breaker is the actual business selling you the car. We recommend doing a little research on the dealership that you’re going to be giving your money to.
Go online to check out their website and read reviews and testimonies about the company. And if you can’t find anything concrete, then perhaps you should move onto the next dealership. What you’re looking for is a reputable dealer who will provide you with ongoing assistance even after the sale and will make the whole car buying process much simpler. It’s far better to err on the side of caution than go through a dishonest seller, a salesperson who doesn’t know his or her product, or even a snobbish salesperson who won’t treat you with respect.
Your personal preferences
You might be looking for something that comes with a bit more boot space, or you don’t mind a higher mileage so long as the service history is up to date, or you consider ABS brakes non-negotiable. Others might have it in their minds that they need (need, not want) climate control functionality or will absolutely not buy a red car.
Personal preferences are just that. Personal. So, spend some times compiling your own particular list of preferences that you won’t budge on. This way, you can avoid the temptation of settling for something that you don’t want or being swayed into buying something more pricey than you can afford.
A 5-year warranty
You’ve made your list of things that you consider essential, settled on the price that you can afford, and have 2 or 3 respected dealerships that you’re going to visit. There’s just 1 last thing that you need to consider and that’s the safety or maintenance of the car that you’ll buy. Make sure that you get a 5-year warranty that’ll cover mechanical and electrical faults, because these types of failures can result in financial disasters. What you can also do (if you want to make sure that all your bases are covered) is take out car warranty cover, which covers the cost of repairing or replacing car parts that fail unexpectedly and all in exchange for a small monthly fee.
Now that you’re armed with these deal-breakers, we hope that you’ll be able to make a better and easier decision around which car to buy.
Also view:
Vehicle Finance, Car Insurance and Road Safety
Buying and Selling a Vehicle – Informed decisions and the Vehicle Retailer
The Online Vehicle Retail Market and Safely Selling Vehicles Online