Buying a car is not an easy task. You have to be really careful with your choice, especially these days when the market offer is huge and you can find cars of all classes, prices, and designations.
Not all cars are equal when it comes to maintainability. Some are more expensive in repairs than others, some are easier to maintain than others. To be able to know what car is the most suitable for you, it’s important to learn about the most common mistakes people make when buying a car and how they can avoid them.
Paying attention only to the initial costs
In Singapore where car sales have increased during recent years, one common mistake people make when buying a car is thinking only about the initial costs (the acquisition itself). The fact that you get one car doesn’t mean it’s going to serve you for many years without any additional expenses. If you were to take the advice of a licensed money lender in Singapore, you should not pay attention only to the initial purchase price. You should also consider the other expenses that are necessary to maintain your car in good working order.
Here are some of the additional costs you should consider planning for:
Annual insurance fees – If you don’t have one already, you will need to get car insurance.
Car registration fee – This usually depends on the state/region where you live and it’s not very high but still should be planned in advance.
Road license plate tag renewal fee – It usually occurs every 5 years or so, sometimes 1 year.
Maintenance services fees – There’s no way around them unless you want to walk everywhere by foot.
Taking these additional expenses into account, the actual costs of owning a vehicle are much higher than the initial purchase price.
Not knowing your needs before choosing a vehicle
Thinking only of the vehicle’s exterior design and not the interior space is one of the most common mistakes people make when buying a car. You have to know what kind of use you will give your car and what number of passengers it should accommodate. If you need a small vehicle that enables you to drive in narrow streets, go shopping or just move around town with your friends, you shouldn’t choose a big SUV. This could be very uncomfortable for the passengers as well as for yourself as they don’t have enough legroom or headroom. In any case, if your needs are more than average, it’s better to pick up an appropriately sized car instead of choosing something too large or too small because otherwise, you will commit the same mistake again in two-three years from now.
Some people buy a car only because of its looks. They don’t think about how it will be to drive or if they can actually afford it because it’s so expensive. This is one of the most common mistakes when buying a car. Of course, all people like beauty and if someone gets an offer for a new look, he or she feels really good about themselves and drives around town with this nice feeling inside them… But what happens after 2-3 years? The car suddenly breaks down and starts to require additional repairs which bring you more costs than benefits. These costs multiply exponentially since we’re talking about relatively big expenses which can cost up to 30% of the car’s actual price.
When you buy something expensive, it should be your priority to think about the quality and not only appearance because in this way you will ensure long-term satisfaction with your purchase. It’s better to save up money for a year or two than to lose so much when buying an inappropriate car just because of its exterior design/looks that don’t even last after two years.
Not considering the resale value
Many people pay attention to the future costs but forget that when selling your car, you will get only part of the money you’ve initially spent on it. Nowadays many more new cars appear on the market and this influences their value too so if you want to sell your old one, it won’t be easy unless you have a more recent model. Also look at insurance fees again because if your old car is worth less than a newer one, you’ll have to spend a lot more on annual insurance fees which can bring another unexpected expense.
Always consider which car model will satisfy your needs and do proper research before you decide to buy something. Nowadays there are so many models on the market that it’s much easier to find a good choice for everyone. You don’t have to pay attention only to the initial costs but also think about future expenses because buying an inappropriate car can lead up to huge and unpleasant expenditures.