With time, you come to a point in time in your life when you are done with taking lifts and bumming off with friends. Yes, that’s when you look forward to buying a car, which is a huge deal.
The car options to choose from are almost infinite, and car dealers are notoriously assertive. So, it can be challenging to find the right combination of wants and needs with an affordable price tag. When buying a car, there are many other factors than the price that you need to consider. There is a whole process of finding a car, getting a car loan if you need it, and signing the paperwork.
Here are the top things to consider when you are planning to buy a car:
- Understand the Purpose of Buying a Car
Once you have narrowed down the choices, you must also understand the difference between your needs and wants. Everybody has a specific set of requirements to fulfill when they buy a car. For long-term satisfaction with your purchase, choosing something that meets those criteria is essential. Like, if you are married and are about to start a family, then you’ll need to look for something roomy and safe. Similarly, if you’re old in age and suffering from lots of aches, you need a car that is easy to get into and out of.
Identifying the right purpose to support your intention of buying a new car will help the car-buying process easier for you.
- Narrow Down Your Choices
The car of your choice must fulfill your needs, wants, and lifestyle demands all at once. Narrow down your options to a couple of cars that fit your price range and needs. Consider factors such as safety, speed, mileage of the car, comfort, and how in bad weather it handles itself. Just because something’s good for your wallet doesn’t mean it’s going to work for your lifestyle. So, select a car wisely before you go ahead and buy it.
- Arrange Your Finances
While striving for expensive cars is one option, it is always good to first think of arranging the money required to own a car. If you want to opt for a car loan, test your eligibility for the loan with different banks and choose one that gives maximum benefits. For instance, Axis Bank offers car loans at low rates, and you can check your eligibility for the car loan online quickly.
Next to it, you also need to calculate what you can afford to pay each month. Be sure to consider the amounts that might be spent in gasoline, insurance premiums, and annual registration fees, and note that fuel prices are pretty high.
- Know the Ownership Costs
Some cars are affordable in price, but more expensive in terms of regular maintenance and fuel efficiency. It is essential to consider additional ownership costs when purchasing a new vehicle. Over the years, gas and maintenance costs can add up.
Similarly, check with an insurance company before you buy a new car to find out the cost of car insurance. Based on the vehicle’s make and model, the premium increases. Typically, the more expensive a car is, the higher will be its insurance premium.
As a rule of thumb, total vehicle-related expense must not exceed 15% to 20% of your total monthly budget.
- Identify the Right Time to Buy a Car
The best time to buy a car is at the end of a year or the end of each quarter. This is because car dealerships have to achieve their sales goals at the end of the year, which motivates them to slash prices and sell cars at lower rates during these times. You may feel there is no need to wait for the right time to buy a new car. However, doing this can save you hundreds, if not thousands, on the final car price.
Buying a new car is a significant decision in life, which may end up causing a financial burden to you if not taken carefully. Keep in mind that your wants can be unrealistic. However, it is good to focus on fulfilling your needs first by buying a car that suits your budget and lifestyle.