Buying a car is a little different to buying sweets or groceries at the store. It requires more thought and thorough planning. It may seem like a rather daunting task but it doesn’t have to be if you play your cards right.
Buying a car is often a necessary expense but it should also be an investment. This is why one should consult a financial advisor and seek advice on any questions that might arise upon purchase of the vehicle.
Here are a few questions one should ask before buying a car :
1. Do I need a car? This may seem like rhetorical question but often people buy cars that they never use. This is simply because everything that they need is within walking distance and it is cheaper to walk.
2. Can I afford a car? Being able to afford a car does not mean being able to pay the deposit or just the monthly premiums, depending on how you choose to pay for it, but it also includes the general up keep or maintenance of the vehicle, insurance, petrol, etc.
3. Am I not in debt? One may be able to afford car but also be in debt. Your financial records are crucial at this time as they can determine whether you are eligible for a loan to buy the vehicle and pay the instalments, or are you a liability.
4. Will my bank finance my vehicle? Should you wish to seek financial assistance from your bank when purchasing your vehicle then you need a healthy credit record. This means that your debts, if any, need to be below 36% of your income.
5. Which model am I buying? Simply walking into a dealership and picking out the fanciest car in the room never works. First you need to know what you want and then consider whether you will be purchasing a new vehicle or a second-hand one. The tricky option is the second-hand vehicle as it has been used. This is when you need to know the history of the previous owner, mileage on the car and whether or not the car has ever been involved in an accident.
These may seem like minor details but very vital as you need to get your money’s worth.
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