It can be quite daunting when looking for a new car to buy as there are so many options on the market, but keep these 5 tips in mind before you buy a car.
You will need to gather as much information as you can to make the right decision that meets your needs and to ensure you get the vehicle that is right for you.
Keep these tips in mind before you sign on the dotted line.
Know What You Can Afford
Your budget needs to be set beyond the instalments as you need to factor in maintenance, insurance, fuel as well as any possible interest increases in the future. All of these factors will contribute to what you can afford.
If you want to get a loan from a bank then you will need to have a good credit history, be employed fora while and have a credit history before you can apply for vehicle finance.
Buy the Vehicle You Need and Not the One You Can’t Afford
When shortlisting the cars you are interested in, you need to be realistic. If you are under financial constraints then a fuel-efficient and affordable car will be best and you will be grateful that you went for this type of car over an SUV every time you fill up.
Maintenance is Key
If you are buying a pre-owned car then look for vehicles that still have their warranty and if you can, have the warranty or maintenance plan extended. Having this can help you to save on maintenance and will limit your chances of having any unforeseen car-related expenses.
Watch Out for Balloon Payments
A balloon payment may offer lower monthly instalments, but it also offers a large outstanding amount, which needs to be repaid at the end of the loan period.
You need to make sure that the outstanding balance would then be covered by your vehicle when you sell or trade-in for a new vehicle.
Make Sure Vehicle Insurance is Included in Your Budget
Car insurance should form part of your budget. Insurance will help to cover any possible third party claims and if your car is written off then you will still need to pay it off.
Buying a car should be a careful consideration as it can quickly turn into a financial nightmare if you make the wrong choice. Do your research, be practical and stick to your budget.