Buying a car is a huge decision. Between the rising prices of automobiles and the sheer magnitude of the investment required, it is imperative that you prepare for the car buying process properly. After all, you wouldn’t want to further add on to the expense by making a poor bargain or getting a used car that is not worth the price. Nor would you want to skip on any important steps because you were unprepared. The decision-making process is anything but easy. In fact, according to Cox Automobiles, only one in three people know what vehicle they wish to buy at the start of the car purchasing journey!
Before you buy a car, it may help to see if you like how it drives, by taking it for a spin in your favorite simulator game, such as Drift Hunters. Are you also unsure how to decide to purchase an automobile? Here are the five steps you must take when out car shopping.
Set a budget
Before you step out and begin your car hunt, you must first take a step back and self-reflect. Ask yourself, how much money can you afford to splurge on buying a car? Be practical about it.
Before setting a budget, you must first take out money for your basic necessities and emergencies. Also, you must take into account the long-term costs of owning a vehicle. This includes the fuel expense, the maintenance cost, and the monthly insurance premium.
After considering it all set a reasonable budget for your vehicle. This will allow you to automatically filter out certain options as well as decide whether you wish to buy car UK used car markets have or get a brand new model from a dealership.
Define your needs
After setting a reasonable budget, you now need to identify what you need in your vehicle. Note that the keyword here is ‘need.’ This will differ from what you want your car to have.
For starters, while a luxurious five-seater SUV might seem like a dream car for you, if you are single and do not go on trips often, it is not an inherent need. Similarly, getting a car that is easy to get in and out of should be a priority if you have joint problems.
Once you have decided on the basic needs that your vehicle must fulfill, you can move on to the flashy specifications like the style, color, fuel economy, safety features, capacity, etc.
Let the research begin
Now we enter the stage that takes the most time. According to Autotrader, a whopping 69 percent of the time of potential car buyers is spent researching cars online. Another independent study by CoxAuto revealed that, on average, people visit 4.2 websites during the research phase.
Make sure you spend significant time in researching the potential vehicles that meet your needs and demands. Don’t just look at vehicles that you are familiar with. There are a lot more types of automobiles than SUVs and Sedans.
The best way to research cars is to browse relevant automobile websites and compare the specifications. Filter according to your budget and needs. This will help you narrow down your choices to a few vehicles. For these cars, go visit the dealership and avail a test drive to assess how the car feels on the road.
Compare the insurance costs
One cost of purchasing a vehicle that car buyers often forget about is insurance. In most countries, car insurance is mandatory. So, when purchasing a car, this is one cost you have to consider no matter what.
Now, just like car brands, there are various insurance companies to choose from.
Different companies charge varying premiums based on factors like the car condition, your driving skills, and your driving history. This includes the number of tickets given and accidents that occurred. The cleaner your record is, the lower your premium will be.
Also, insurance companies take certain statistics and probabilities into account when making predictions about the potential risk. For starters, younger people are generally novice drivers and hence are more prone to accidents. Similarly, compared to suburban areas, cities feature more car thefts.
So, a wide variety of controllable and uncontrollable factors are taken into account when finalizing the insurance rate. By researching and talking to various insurance companies, you can get quotes to compare and decide which plan to go for.
Arrange to finance
Before you head to your selected dealership to buy your shortlisted vehicle, the final step to purchasing a car is determining the financing options.
You can do three things – lease a car, take out a loan, or pay the entire value upfront to the dealer.
As per Census, 6 percent of households prefer leasing cars. Another study by Policy Advice reported that US citizens alone have cumulative auto loans worth 1.18 trillion USD!
Each method has its pros and cons. Leasing allows you to only pay the rent of the car for the time you wish to have it. You can then update to another model. However, in this case, you are not truly the owner of the car, and there are certain mileage restrictions in place as well.
On the other hand, financing via auto loans allows you to divide the total cost of the car into affordable principal payments. But, interest is charged as well, whose rates are dependent on your credit rating and other macro-economic conditions.
Finally, paying upfront is ideal to avoid any additional payments in the form of interest. It also gives you immediate ownership of the car. But, the cost of purchasing a car can be quite cumbersome, especially if it is a brand new one.
Pick a financing option that seems the most reasonable to you, given your financial standing.
Ending Remarks
Purchasing a car is always a daunting task, regardless of whether you are a first-time buyer or not. But, approaching the task systematically can take away some of the anxiety. With these five simple steps, you can easily decide how to finalize a car’s purchase. So, tighten your seat belts and get researching!
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