6 Tips for First-time Car Buyers
So you finally have a stable job and would like to purchase your first car. They say that paying monthly dues for your car is like financially supporting a college student. And this is somewhat true as this involves enormous amount of money. You have to weigh your options, list the pros and cons and it can be stressful, but then exciting at the same time. Would like to ease some of your burden and help you by considering these 6 tips for first-time car buyers.
1. Know your capability.
The most significant thing to look at is your capability to pay the monthly amortization. Remember that expenses don’t stop after you settle the down payment to your auto dealership. You need to consider also the additional expenses such as gasoline, insurance, maintenance and repair cost. Hence, it is very important to assess if you can afford to sustain a monthly obligation.
2. Set a realistic and reasonable budget.
Plan your budget accordingly and avoid spending on wants. On top of your monthly amortization is your basic expenses such as foods, utilities, allowance and so on. The higher your down payment, the lower your monthly amortization will be. Be consistent in paying your monthly car payments. Otherwise, you will incur extra interest rate and penalty. Do not go beyond what you can afford. Make sure that even with the additional expenses, you can still live comfortably and proceed with your everyday routine without a halt.
3. Determine what car you really need.
Take into consideration your personal lifestyle and day-to-day activities when buying your first car. Are you looking for a car for your daily commute so you go for fuel efficient cars? Or you need extra leg room since you’re also expecting a baby or you have a big family? Or you just simply want the best car both interior and exterior? Since it is your first car, the safest car then?
4. Review and check your financial options.
Various banks offer car loans. It is important to review the interest rates, amount of down payment, and years to pay. If you possess good credit and can secure a favorable interest rate from your bank, you should choose that option. In my case, I inquired from three banks and they have different offers. Do not forget to compare all your monthly fees against your budget. Of course, it is still the best option to purchase your first car in cash if you have enough funds as you can save a lot on interests.
Check the article Find the best Car Loan in Philippines.
5. Request for quotation and cost comparison.
Ask multiple dealers for quotation as the offer is different even for the same car model. For instance, I asked quotations from four dealers within my area and yes they offered different rates. The quotation includes freebies. Better ask your friends, relatives and colleagues for recommendations. And if you will have a chance, do a test drive.
6. Enjoy your first car.
The moment you get your very first car, celebrate as it is a milestone. Go somewhere and take a road trip with your family or friends. Don’t worry too much if your car gets scratches and dents as this is normal. Sometimes you also cannot avoid minor accident that will damage your car. Once, a tricycle bumped into my car at the back and the right rear light was damaged. Unfortunately, it was hit and run case. Good thing it was minor and I have my insurance to fix it. Even if you drive extra careful, there are still reckless drivers out there.
Most people often say that having a car is not an asset instead it is liability as the value keeps on depreciating. I don’t mind because for me, I save a lot of time and I can go anywhere without the hassle of transferring from one public vehicle to another. I can also use it during emergencies, road trips and mostly driving to office and back home is much more comfortable.
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