So, finally the wait and all the money-saving time is over and now you are going to buy a new car. Good for you. Buying a car is a big step towards adulthood, towards becoming a responsible grown up and most of us cherish this moment. You would have seen how your father looks and adores his first car, no matter how old or useless that car is now. That is the kind of bonding people have with their first car. So just to ensure that you get the car you have been dreaming about and that too at a great price, here are few quick tips.
1. Calculate the interest you will be paying: If you are going to take a loan for buying a car, you should check with various banks about their interest rate. Before taking the loan, calculate how much you would have to pay as interest and are you comfortable with that amount?
2. Your budget and cost of the car: Who doesn’t want to own a Ferrari or a Lamborghini? But for most of us, these cars don’t fit in our budget. So decide your budget, which is the amount you are willing to spend, and check for the cars which are available in that budget. Look for the car which is the best in that price range.
3. Research about the loan and interests: People tend to think that they should opt for low payment per month over a longer period of time. But this is not the correct approach. The value of car depreciates over time and also the more the time you take, more will be the interest amount. So it is better to opt for bigger amount per month for a short period of time.
4. Why are you really buying a car?: This is a tough question. Sit down and introspect. Do you want to buy a car because it will solve your conveyance troubles or are you buying a car because it has great looks and features? You want it for years or you get easily bored? Answers of these questions will help you decide whether you should take a loan and buy that car or not.
5. Calculate hidden expenses too: Take in account all the usage and maintenance expenses. Like for example the costs of fuel, servicing, insurance, annual excise tax and other owner related expenses.
Use these easy tips and then you can rest assured that you will get not only a good car but also a great deal.