A car is synonymous not only with freedom and financial independence but also with a real qualitative leap in the standard of living. Before you even think about buying a car, you’ll probably need to make some sacrifices, plan ahead, and have discipline. And nothing to give up, see? After all, when you turn the key in the ignition, you’ll see that it’s all worth it.
If you were excited because you already wanted to buy a car but were both apprehensive, the following tips would show you the first considerations before buying the car:
Our financAssessyial capacity
Although the world economy is in a good phase, interest rates are low, and financing opportunities are good, the main criterion for assessing how much can be spent to purchase the car should be the monthly income. It is important to have at least the idea of your salary for the next three years, which is the average term for auto financing.
Next, one must evaluate what is the commitment of the salary that can be done with the financing. This varies according to fixed expenses. In the case of a young person who lives with his parents, for example, and therefore does not have so many bills to pay, the commitment may be greater than that of a young person who lives alone. Fixed costs such as apartment rent, school fees, electricity bills, water, and food should be subtracted from the total salary, and the remaining amount should be set aside for some emergency, and the other half should be set aside and other expenses related to the car, such as insurance, gasoline, and parking.
New or Used?
The main and most obvious advantage of a new car is that the owner will not need to worry if it has ever had an accident, if it has ever had a mechanical problem, or if it was well taken care of by the former owner. The used car, in turn, has as its main advantage the lower prices, since even a new car, when leaving the resale already suffers a depreciation of 5% to 10% of its value.
Used car prices are even lower now because, with lower interest rates, the search for new cars has greatly increased. And with the decrease in demand, the used car is at a much lower price.
In order to buy a used car, however, a greater rigor is required on the purchase so that a bad deal is not done. The tires of the car, the steering wheel, the mileage should be analyzed and, in no case should the buyer trust what the former owner speaks. To better verify the history of the vehicle, a good option is to ask a trusted mechanic to evaluate the intended car.
The choice of make and model
Choosing both the make and model of the car can be the most complex part of the process because it involves a number of criteria that must be weighed very carefully.
Firstly, the buyer should reflect on the use of the car. If it would be used for travel, a model that consumes less fuel may be the best option; if the goal is to carry suitcases and loads, a pickup can be a good alternative, and if it is to be used to carry a large family, for example, a minivan may be considered.
Once the buyer has defined the type of car best suited to their goals, the next step is to compare the brands. This choice should take into account the maintenance costs that the car will have; the warranty offered, the possible resale value and the design that pleases you.
The power of the engine is another factor that must be weighed according to the goals of the car. If the car would be used on trips with mountain ranges, for example, a 1.0 engine may not be a good option.
The best way to make a good deal is to gather as much information as possible to have arguments when it comes to talking to the seller. Find out the price range of similar cars in other dealerships and inquire about the fees charged.
Search for prices in dealerships, specialized magazines, classified newspapers and on the internet. Find out the dealer price and the list price and negotiate on those values. Make price notes or take newspaper and magazine clippings that prove values, as they can be used to get a bigger discount.
A tactic widely used by many salespeople is to tell the customer that they have a unique offer, which if not used the same day, is sure to be lost to other people who are interested. Do not give in to pressure; an impulse purchase does not give room for comparisons and good trading. Ask the seller at least one day and check with another dealership or the Internet if that proposal really is worth it.
It is also important to keep in mind what the desired car model is and the maximum price that would be paid for it before talking to the dealer. This may prevent the seller from delivering a different model than the one sought, which would often be more expensive and less suited to the initial proposals.
Versions that already contain certain items such as power steering are better than cars in which these extras have to be installed. This is because, when you want to resell it, your table value will often take into account only what it already had as standard.
If you can afford to pay cash, use this in your favor. With the cash in hand, the sale does not depend on credit approval and is streamlined. Since this is good for the seller, because the money goes into the box faster and advances the commission, it can get more flexible.
Cash or installment payments?
Paying cash can bring good discounts and so is the best option. According to a recent survey conducted on car buyers, it was observed that 69.5% prefer to finance the purchase in cash, while 30.5% expressed their preference for installment payments.
Currently, there are also numerous financing options which allow up to 84 installments (seven years), but it is recommended that the limit be 36 months. In three years the, debt could be paid off faster, the buyer pays less interest and, if he needs to sell the car, the portion to be paid will be lower, and the probability of needing to put in more money to repay the debt is lower.
Hiring insurance is a key step in buying a car. Unfortunately, anyone is liable to leave with the new car from the dealership, only for it to be stolen the next day. So the insurance should be done along with the purchase of the car. In addition, researching the insurance before the time of purchase can help in choosing the car, as prices vary by model.
Insurance can be done in a bank or through a brokerage firm. For those who have never owned a car before, trading through a brokerage firm is indicated because they may have more information to pass on to the less experienced customer.
In conclusion, buying a car is very exciting, but there are many considerations to make so as to avoid all forms of regrets as highlighted above.