The purchase of a car is an exciting moment in your life. Buying a car instils a sense of pride in you. However, no matter how gratifying the feeling, if you purchase a car without weighing out the pros and cons, you will see some heavy financial expenditures coming your way.
The failure to conduct important research on the various charges affiliated with a car purchase, the costs of keeping the car functional and the car insurance price can put some serious dents in your savings.
While the process of purchasing a car seems seamless and smooth in advertisements and movies, there is a ton of research that you should carry out before making such a big expenditure. For instance, if your new first-hand car is heavily damaged in an accident, and you are yet to buy car insurance, You could be looking at some major expenses on the repair, while still paying the EMI.
Additionally, there is the consideration of buying a brand-new car or a used second-hand one. With multiple online sites cropping up that make buying a used car seamless, more and more people are buying one in recent times. So, let us look at 6 things you should look at while purchasing your next car – should it be a new car or a used car.
6 things to check while purchasing your next car:
- Understanding the requirement and needs:
Before going ahead with the purchase, you need to ensure you understand your requirement for the car. You should start by making a list with the specifications you need in the car, for instance, the storage capacity, height requirements, seating conditions, fuel mileage etc. These things will help you understand what you want from the vehicle and can help decide which car to purchase. For instance, if you’re purchasing a car for business/commercial purposes, then going with a used car can be good and affordable.
- Calculating monthly vehicle budget:
After narrowing down your requirements from the vehicle, you should look at the amount of money you can spend on this purchase. You should decide on the budget you are willing to spend, keeping in mind the different costs associated with the purchase of a car.
If a first-hand car seems a bit out of your budget, a smart thing to do would be to go for a second-hand car that meets all of your requirements. To calculate your finances efficiently, you should also factor in the long term costs like the insurance for car, monthly servicing and loan repayment.
- Comparing the different deals available:
When deciding on a car, do not blindly accept the first deal you get. Visit different dealerships to find the best offer on both first hand and second-hand cars. It can be beneficial for you to compare different brands in the same category to select the best car for you. Different deals can help you in making an informed decision. Some dealerships also have tie-ups with insurance companies for providing the customers with a smooth deal on the insurance for the car.
- Reading up on the dealership:
Researching about the dealership can also be helpful to you. If you read up about the dealership and find out about the bad deals provided to their previous customers by reading through their customer reviews, you can ensure to avoid the dealership. Conducting thorough research on the dealerships available can also provide you with information on different places that sell the best second-hand cars. After looking at the options available for both first hand and second-hand cars, it will become easy for you to decide on the car to purchase.
- Checking the vehicle and asking for a test drive:
Once you have zeroed down on the dealership and vehicle, it is a must to ask for a visual tour of the vehicle, the features that come with it and a test drive. A demonstration of the interiors can help you get better accustomed to them. After learning about the features, you can visualize how they might fit in your life. If possible, opt for the test drive with your family members. They might be able to help you with insights that might have missed your eyes. When asking for a test drive of a second-hand car, make sure that the car has been serviced and in good condition. If you purchase a second-hand car from a dealership, you can be sure that they have checked the car and that it meets the requirements for certification.
- Making the decision:
While making the final decision on which car to choose, you will have to consider the pros and cons of both first-hand and a second-hand car. One good rule is to check if you can pay the car off completely in three years. If you cannot afford the car at this rate, then look for something more affordable. A first-hand car’s value starts depreciating as soon as it leaves the showroom. When you opt for a second-hand car, you can take advantage of the depreciating value the previous owner faced.
In conclusion, before making the massive purchase of buying a car it is important that you weigh out the pros and cons, your necessity for the vehicle, the overall budget you are willing to spend. Once you have mapped these out, you can begin your research on the different cars and insurance policy for a car available in your budget. While most people buy insurance for a new car, most fail to cover a used car. It is imperative and a legal mandate to buy insurance for a used car as well. So research the options well and buy a comprehensive car insurance policy for your next car.