Do you crave a car while listening to this song on loop? But do you feel you don’t have enough for buying a new car?
Lamborghini chalayi jaane o,
Saanu vi choota de deyo,
Kithay kalley-kalley jayi jane o.
Don’t worry; you have come to the right place! I’ll take you around on a trip making stops at different things you must consider before buying a car.
1: Affirmation: Be sure you really need to buy a new car
Let me ask a question: do you really, like reallyneed a car? (Also, there is a difference between need and want)
In the event that you can do well without a car as well, avoid it.
There is a side benefit to not owning a car as well. That way, you’ll walk more to shorter distances which help you keep healthy.
Not only is this the best habit you can probably inculcate in your daily routine, walking can help you in other ways as well.
Walking has been constantly linked with higher levels of creativity. Your creativity instinct shots up when you start walking.
Studies have demonstrated that walking for even 30 minutes a day is the ideal and perhaps the only medicine your body demands.
I have talked more in detail about this in Smartly Pick A House Location To Become Wealthier Than You Ever Imagined
Okay, we talked about not buying a new car so far. Let’s talk about buying a new car now.
In case you absolutely need a car, narrow down what kind of a car you need. Take a pen and paper and write everything you need (and not want) in a car. If you follow this list religiously, this list will lead you to the right car.
2. Budget for buying a new Car
Unless you’re some wealthy tycoon who has got cash lying around everywhere, you’ll have to set up a budget for buying a new car.
Also, you must keep in mind that paying for a car is not the end. With a car comes the bill for vehicle insurance, periodic petrol/diesel (which are surely not getting any cheaper) and other related expenses.
My advice is to confine your vehicle expenditure (inclusive of insurance, petrol/diesel etc.) to 20% or less of your monthly income.
This way, you’ll not have to compromise on your other objectives in case you decide to buy a new car.
Remember, a vehicle is presumably the most exceedingly awful monetary move one can make. Not only is it a depreciating asset, it is probably the most expensive thing you’ll buy after your house.
Hence, try not going gaga buying one of those!
3. How to pick the right car?
Picking the right car can uplift your status or damage your budget.
The right car is difficult to find given there are a plethora of car options in the market today. There are a number of car types like SUV, sedan, hatchback etc.
While choosing a car, try not to get tempted by the thought of driving around in a huge car.
Buying a SUV is like digging your own financial grave. It would look good on the outside, but not on your financial books.
Consider getting a modest 5-seater vehicle that wouldn’t put a lot of strain on your beloved finances.
Even if you have a large family, do not, I repeat, do not consider getting a huge car or you’ll drown in your own car while financing for it.
Buying a second-hand car is not a bad option. It gives you a car without giving you the financial strain which comes with a new one.
But, make sure you test drive the car before finalizing a deal. Also, try to avoid buying a new car which is more than 6-7 years old. An older car than this will have no value left for you to derive.
Ensure that all the required vehicle repairs at the time of purchase are made by the seller only.
An advantage of buying a second-hand car is that once you use it for 5-6 years, you can consider selling it and buying another second-hand car.
What about mileage and stuff?
What is mileage? In simple words, mileage refers to the number of kilometers a particular car will cover in one liter of fuel.
Therefore, the higher the mileage, the lesser fuel it needs. And hence, the cheaper the car proves to be.
Also, it is true vice versa as well. The lower the mileage, the more fuel it needs to cover the same distance and the more expensive will it be to finance the car monthly.
4. Save Money for buying a new Car
To begin with, try not to borrow money for a car.
It is a bad, bad idea. Also, it is indication that if you have to resort to borrowing, then the price of the car is too much for you to afford.
However, if you absolutely need a car, avoid taking a personal loan for it at all costs. Go for a car loan.
This is because you’ll be offered a much lower interest rate in a car loan than a personal loan.
Also, to save some easy money on your car, follow these two steps:
- Never use a car for going to nearby places: instead walk and you’ll not only save money on fuel but also build health.
- Whenever the car stands idle for more than 10 seconds (on traffic signals, on a shop etc.), turn off the engine and save lots of fuel.
5. Test Drive to find the Right Car
Test driving a car is important before you make the final deal. While you might be hesitant at first to ask for a test drive, trust me; this step is not worth skipping.
An ideal way of test driving cars is to first finalize three cars which you think are the most suitable to you and your finances. Then, on a free morning, you can schedule their test drives one after the other so that you can compare their feel and hold while their impression is still fresh in the mind.
This way, you’ll be able to make a wiser decision.
I hope you’ll consider these points before buying a new car (probably second-hand).
Just for your convenience, let me summarize the points we discussed:
- Consider do you really need a car.
- Set up a budget for the car
- How to pick the right car
- How to finance the car
- Importance of test drive
So that’s it folks! Keep ahead of your finance game by following this blog at Bachat.
Use a car cost calculator to match the car’s total cost of ownership with your budget. After shortlisting cars that fit your budget, take them out for a test drive and pick based on your comfort!
You should definitely set a budget for a new car as it protects you from any unforeseen car-related expenses in the future.