Buying a car these days is much more complicated than in times gone by, especially when you want to buy a new one. It can be a daunting task, especially if you’re on a budget. But what are some of the major aspects you must consider when in the market for a new vehicle?
Choose Your Preferred Brand
It might not seem like a productive first step to choose the brand you prefer; however, it can actually be quite helpful. For example, if you have owned cars before and are upgrading, you might have a brand in mind. Conversely, if this is your first car, you might want to consider a brand that is somewhat “beginner-friendly.” Some brands like VW are renowned for their high quality and are well-suited to both beginners and those who have been driving for some time. On the other hand, something like a Ford Mustang might be a little overwhelming for those just beginning their car ownership journey!
Consider Your Ability To Pay For Upkeep
Once you have chosen a brand you like the look of and you consider suitable for your requirements, you should consider whether you can afford to maintain it. Many people forget that they will be fully responsible for the upkeep of their vehicle, and if you buy a car that costs a lot to maintain, you could discover your bank balance depleting far quicker than you thought. Some cars require costly parts or will cost more to insure for various reasons, so you should factor this into your decision.
Lease Buy or Finance?
The next step is to decide on how you will buy the car. Your choices are leasing, acquiring finance, or buying it outright. They all have advantages that might appeal to you, but you need to make a choice.
- Reduce or eliminate sales tax.
- Your monthly payments are usually lower than financing.
- You don’t need to worry about depreciation (it is priced into the lease cost).
- You get a brand new model.
- The leasing company covers maintenance in most cases.
- You will never own the car.
- You are in a perpetual state of monthly payments.
- You will have a limited range allowed to drive each year (going over will cost you more).
- To be considered, you must have a good credit score.
- You will own the vehicle.
- You can often get great deals on previously leased cars.
- Used doesn’t have to mean dilapidated.
- Insurance is cheaper than a leased car.
- You are responsible for maintenance.
- The car will depreciate each year you own it.
- Parting with such a large sum can be a difficult pill to swallow.
- You will typically have more choices.
- Dealerships will give you first-class service!
- If you are prompt with repayments, you will increase your credit rating.
- You will own the vehicle once it has been paid off.
- You will have monthly payments to deal with (more expensive than leasing).
- It will depend on your credit rating.
- It could be high-interest rates.
- You generally still need to pay an upfront cost.
Shop Around For The Best Deals
The car market is one of the few industries left that you can negotiate and haggle. Therefore, it is in your interest to look around and see what offers different dealerships are providing. You can even wait for certain holidays to have sales on older models they want to shift to make way for the newer ones. This doesn’t mean you are getting a second-hand car, but instead, you will get the previous year. So, for example, you might get a 2020 BMW rather than a 2021 model. If you don’t mind this fact, you could snag an incredible bargain and still walk away with a brand new vehicle!
Check The Warranty (Or Get An Extended one)
Most new cars offer some form of warranty, but some errands typically offer better ones than others. For example, Hyundai is famous for providing up to 10 years or 100,000 miles (different parts have different periods). It is always nice to have that peace of mind, even though most modern cars tend to remain trouble-free well beyond the stated warranty. If your chosen vehicle doesn’t have a particularly good warranty, you might want to consider purchasing an extended one along with (just read the fine print).
There are many things to consider when buying a new car, but there are only a few things that you should always consider: Price (and how you will pay), upkeep, and warranties; the rest is detail.