8 FINANCE RELATED TIPS TO CONSIDER WHEN BUYING A NEW CAR

woman-buying-a-car

Buying a new car could be quite a daunting task; the financial aspect as well as getting the best deals and even deciding on the car that would suit you perfectly would make purchasing a car quite an ordeal.

Whether it’s your first car or a replacement for an old car, there are certain financial aspects that should be taken seriously. Buying a car isn’t a big deal most times, living comfortably afterwards is the major thing — and a lot of people rarely put this into consideration.

These 8 tips should be considered.

1. DETERMINE YOUR BUDGET

Like with every financial action to take, budgeting always comes first. Determine the amount of money you’re ‘willing and able’ to spend on that car; emphasis on willing and able because it’s not just about the kind of car you want, but the impact it would leave on you after its purchase. You shouldn’t go broke after buying your car — that’s rarely a nice option financially.

2. BRAND NEW OR FAIRLY USED

This is also another option to consider when purchasing a car. Sometimes it may be advisable to go for a fairly used car if you cannot afford the high prices that new car commands.

3. CAR CONDITION  

The condition of the used car is also another important factor to consider. Buying a used car that’s in bad conditions would leave you with more bad than good. It’s important to check the mileage and general condition of the car before purchase. Buying a used car in ruins can wreak your finances terribly.

4. Mode of payment

It’s also important to use a convenient mode of payment for your car purchase. Would you rather make total cash payment at once? Or pay in installments or finance the purchase using a bank with lower interest rates?

5. ITS MAINTENANCE

The amount or price of that car and the amount you’re willing to spend may be one thing but its maintenance may pose another problem you should be wary of. Some cars come at an affordable maintenance cost while some come with high maintenance cost, and others come at even ridiculous cost of maintenance. Never buy a car that the cost of its maintenance would leave your finances in ruins.

6. FUEL CONSUMPTION

Fuel consumption is another important financial decision that you shouldn’t take for granted. Some cars have high fuel consumption while others are built for the economy. Be sure to buy a car that you’re comfortable with its fuel consumption.

7. THE CAR COST AGAINST YOUR EARNINGS

This probably is one of the most important things to consider; it goes side by side with your budgeting. People love to make statements with their cars and go the extra mile to buy a car just because it’s in vogue, caring less about their income. Buying a car worth your annual income is never a wise decision financially; it means you’ve worked a full year only to spend everything on a car.

8. NEGOTIATE

Car prices differ from store to store. Be sure to go for a dealer that would give you good price rates.

With these tips, you can never get it wrong financially when buying yourself a new car.

Jake    

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