Buying a car is a super exciting purchase for many people and so it should be. Whether the car you buy is brand new or pre-owned, there are various considerations to be undertaken before signing on the dotted line. Careful consideration and thorough research are great ways to get the car you want especially when you budget appropriately for the new purchase. If you are unsure about whether to buy a new or pre-owned car, read the guide below to help you make a good decision.
Determine Your Budget And Needs
Before deciding on whether to buy a new or used car, decide on what your budget will comfortably allow for. Always shop for and buy what you can realistically afford, and not what you want to be able to afford. If you cannot afford your dream car now, you can create a savings plan with the future goal of purchasing the car you desire.
Your car budget must include finance repayments, insurance, wear-and-tear budget, fuel expenses and the general upkeep of your vehicle. Include the cost of replacing the wheels and tires of your car in your car budget in order to prevent costly scenarios you cannot immediately afford. Ensure that you have a comprehensive budget to adhere to when shopping for a new or used car.
Secondly, decide on what type of car you would prefer to purchase. Are you in the market for a new car? Can you afford a new car? Do you require a manual or automatic, a sedan or a truck and what brand do you resonate with? Make a list of what features you require and understand that you may need to alter this list according to your budget.
Advantages And Disadvantages Of Buying A New Car
When buying a new car, consider the following advantages and disadvantages;
- A new car usually comes with a service and maintenance plan
- A new car has a factory warranty which covers you in case of a malfunction
- Lenders offer better finance on new cars
- ● You have freedom of choice when selecting a new car, you can choose your model, make, color, accessories, and modifications as you wish
- New cars have a better resale value
- New cars have the latest safety and security features which used cars may not have
- New cars are generally more fuel-efficient than older ones
- New cars are damage and problem-free, making it a more reliable buying decision
- New cars cost more than used cars and will be more costly to finance
- Insurance premiums on new cars are usually more expensive
Advantages And Disadvantages Of Buying A Pre-Owned Car
Now let us explore the pros and cons of buying a pre-owned car;
- Service and owner history are not always available or reliable
- Used cars have wear-and-tear both on the exterior and interior
- Used cars may be devoid of the manufacturer`s warranty
- Latest technological and safety features may be lacking
- The depreciation in value of a new car has already occurred and is insignificant now
- Depending on the car, insurance can be cheaper
- Used cars cost less than their updated counterparts
- Spare parts and services may be costly
- You may have to spend more money on repairing or replacing certain features or parts
- Older cars are not as fuel-efficient as the newer models
- Demo or display models can be more affordable than a brand-new vehicle on the dealership floor
Finance And Insurance
There are various ways to finance a car. You can either use a bank or lender, trade-in your current car, pay cash or put down a deposit in order to minimize car installments.
When buying a car, especially from a dealership, it is crucial to manage the sales person`s expectations immediately. Do not allow yourself to be sweet-talked into adding features or upgrading the car model when you know you cannot afford it. Car salesmen have a bad reputation for selling extra features that you don`t need to increase their commission. Do not fall for their sales skills or any manipulations that you will certainly regret later. Stick to your guns and persevere with the budget you set out with before the buying process began.
Before car shopping, consider using Crediful to check your credit record in order to secure the best finance and interest rates available to you. Your credit record will determine the interest rate payable on the finance the car dealership, bank or financing institution is willing to give you. Your credit score is used by lenders to determine your financial status and your history in managing credit or debt.
Finally, you will need to insure your new set of wheels to protect yourself from the financial downfall of theft, damage or fire. The cost of insurance should form part of your budget from the beginning so that you do not purchase a car you will struggle to finance. Remember to shop around for car insurance quotes in order to get the best cover for the best price.
Now all that is left to do is process the paperwork, get the keys and enjoy many happy miles in the car you choose! Enjoy the ride!