Five Crucial Steps to Consider Before Buying a New Car
Buying a new car is a big financial decision that you shouldn’t rush into. Cars are an expensive purchase and involve daily use, so you want to feel like you made the right choice. Whether it is your first, second, or third car, the decision never gets any easier.
Here are five of the most crucial steps that you should consider before purchasing a new car…
What Do You Need the Car For?
Before you even begin to think about the rest of the requirements, you should ask yourself, what car is best for me? What kind of vehicle are you looking for? What purpose does it need to fulfil?
If you’re a young student, you’re probably going to need something that has low fuel consumption and great insurance rates. If you are a mum with three kids, you’re probably going to want a car that fits the entire family. So, before you begin fantasising about your new car, establish what your requirements are.
What Is Your Budget?
The second most crucial element to consider when purchasing a new vehicle is your budget. What are you willing to spend? Do you want to pay for the car in full? Or are you happy with financing? Cars can be extremely expensive to buy, run, and maintain, so make sure to factor all of these aspects into your budget, not just the purchasing price.
You may find that the car you really wanted is way out of budget. Why not explore other similar options from different makes? For example, if you really want a Jeep but you can’t afford that specific model, take a look at older years or even different makes. A lot of the time you get the same features, just a lower price tag because it’s the brand name that you are buying.
What Kind of Financing Will You Be Using?
If you are going to be using some sort of financing, first you will need to determine how much you can spend on monthly car payments. According to car experts, your monthly car payments shouldn’t surpass 15% of your gross pay or no more than 20% of your take-home pay.
Once you know how much you are willing, or are able, to spend on your monthly car payments, there are some other factors will affect your interest. The amount of the loan and the length or the loan are the largest determining factors, so you may want to save up for a few more years before you decide to go down the financing route.
Do You Prefer Automatic or Manual Drive?
The debate between automatic and manual drive is probably the most disputed topic of conversation amongst drivers. To make things simple, let’s just go over the advantages and disadvantages of each transmission.
Automatic cars are less labour intensive and require less concentration to drive. From a safety point of view, you can argue that driving automatic transmission allows you to have both hands on the wheel at all times.
Similarly, if you find that you stall often, driving automatic can save you from the embarrassment of having to re-start your car in busy areas. In areas with high traffic, automatic transmission could also be more convenient because you won’t have to stop and start your car repeatedly.
However, automatic cars are generally more expensive than manual ones. Not only are they more expensive to begin with, but they also use more fuel, as they rely on a torque converter to change gears. This makes manual cars more popular amongst budget conscious drivers. Repairing a manual car also tends to be less costly than an automatic one. Lastly, you also have more control driving a manual as you are fully in charge of the gear shifts.
Do You Want a Hybrid, Electric, Diesel, or Petrol Car?
Finally, you can also consider the different models and makes of cars in accordance with the type of engines that they have. This is more of a personal preference but to make things easier, we’ve summed up the pros and cons of each type.
Petrol is the cheapest to buy, however, it produces dangerous carcinogens and harmful greenhouse cases. Storing petrol is also dangerous and the price of the fuel is highly volatile.
Diesel cars have a lower depreciation value than petrol ones. Their engines are more efficient and therefore they save around 25% worth of fuel. However, the price of diesel tends to be much higher than petrol. Nevertheless, the road tax for a diesel car is lower because the CO2 that it produces is also lower.
Hybrid models are great for those drivers that want to find a balance between fuel and eclectic engines. These are much more efficient than petrol or diesel cars and they have high resale values. However, these also tend to be more expensive to purchase and the maintenance of these cars may also require special attention or skills. Similarly, they still produce harmful emissions, albeit at a lower rate than the petrol and diesel cars.
Finally, electric cars are the most environmentally friendly option. They emit no harmful substances and incur zero road taxes. They are also very quiet and retain a high re-sale value. On the downside, they are expensive to purchase and there may be limited places to recharge your vehicle during long journeys.
Overall, a car should cover your basic needs and be able to get you from point A to point B. However, there are so many added features, new technologies, and models to choose from that the decision becomes much more complicated.
Rather than racking your brain and trying to pick a vehicle at random, take our tips into consideration. Find a few models that you like and go over our guide, take some notes and evaluate the pros or cons of each car. Then simply head over to your nearest dealership and pick up the keys to your brand-new automobile.