Things To Think About Before Buying A Car
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If you’re thinking of purchasing a car, it’s a good idea to do your research first. Aside from choosing a make and model, you’ll want to investigate other factors that will affect your daily life.
A BMW has more expensive parts than a Toyota.
A Prius has better gas mileage than an SUV. Do you take out a personal car loan or finance it using a hire purchase or a personal contract purchase?
Make and Model
The make and model of a vehicle determines its starting price and how much it depreciates. There are various websites that rank vehicles from those that depreciate the least to those that depreciate the most. Along with depreciation, you’ll also want to think about your needs.
Are you looking for a small, compact car that can easily get you from point A to B in a bustling city? Or do you need a truck with four-wheel drive that can get through rough terrain and snow without problems? At the end of the day, a car is a tool that simplifies your life.
Parts and Maintenance
Certain makes and models come with more expensive parts or require that you purchase higher octane gasoline. Not only do you need to consider your budget for a car, you will want to take a look at how much you can afford to maintain the car.
Some new vehicles come with bumper to bumper warranty and free maintenance (oil change) while an older, second hand vehicle may not be covered any warranty plan. How much you’re willing to pay for parts and repairs depends on your monthly budget and expenses.
Depending on how far you drive and whether or not your mileage is reimbursed,gas mileage is an important factor. Even with an initial low cost and cheaper parts, a car that burns gas inefficiently will require more stops at the gas station and add to your daily or weekly expenses.
Hybrid and electric vehicles are extremely efficient but come with a high price tag. Maintenance on these newer types of vehicles are also pricier. Small, compact cars such as a stick-shift Honda Civic are fuel efficient, but may not handle snow and ice well in the winter time.
Paying for the Car
There are four different ways to purchase a car: cash, a personal car loan, hire purchase, or personal contract purchase. Paying in cash could work for high mileage, second hand vehicles; but keep in mind that these vehicles may require more maintenance and repairs.
Always research the vehicle’s maintenance history when buying second hand. Also, buying a second hand car from a location that does not snow means that there is less of a chance that there is salt corrosion.
A personal loan and hire purchase are similar in that you’ll be paying down the price of the car, plus interest, every month.
Personal loans may be harder to get at first, but you’ll own the car right away. Compare car finance deals on Moneyexpert.com. A hire purchase is easier to obtain and requires a cash deposit of about 10%, but the car may get repossessed if you fall behind on your payments.
A personal contract purchase is usually available for new cars. After an initial deposit, you pay for the amount the car depreciates over a period of time. At the end of your contract, you have the option to buy the car or return it to the dealership.
This option may be best if you’re not looking to own a car for more than a few years. Once you have weighed out and researched all of your options, websites such as MoneyExpert.com can help you secure a payment plan to purchase the car you want. *Please consider all options before purchasing a car on finance.