It’s that time of the year when car commercials make you feel like you’re driving an antique. You might be tempted to make that move and get yourself a new beautiful vehicle. A financial sound decision consists of reassessing your thoughts and decide whether it is necessary. Nonetheless, for some people, the time has come to invest into a new car. Buying a car isn’t something you should rush into. Of course, it’s not as big of a financial expenditure as buying a house, but it can be one of the biggest purchases you make every few years. A car is a necessity, and when the time comes, if your old car is giving up, you really do not have any other choice. What should you consider when picking your next vehicle? Here are some suggestions.
Outline the details for the car you want
This is the first step. One of the first things you might want to do is to consider the type of vehicle you would like. Are you in a situation that requires you an SUV? Maybe, a very small sedan will do because your office is right around the corner. Are there any specific makes and models of car that you have seen out on the road which attract you aesthetically? Making a note of them helps you to narrow down your possibilities, and it makes it easier when you decide that now is the time to make that big purchase. Next, we will look at finances.
It is a good idea for you to set some time aside to work out what your priorities are for your new vehicle. What is it do you need it for? Do you need a minivan because of the family? Extra seats or a bigger car perhaps? Maybe you need your car for your job, and you want something more executive looking, or perhaps a comfier drive.
How will you fund it?
This could be the first step and it is an important one. Being clueless about prices and your budget will only get you frustrated. It is a good idea to decide on a budget or a monthly payment that fits your current financial situation. On that note, simply because you can afford a certain monthly payment does not mean that this is the car for you. The goal is to pay your bills and still have a sufficient amount of savings. So, it is always good practice to have a set plan. In fact, having a defined target avoids you any emotional decision you may make when discussing with a salesman or when about to sign any document. Websites like https://simplyfinance.com.au/ can be useful, and it will help you determine what your monthly budget is.
A new or used vehicle?
There are two options when it comes to buying a car; you can either buy a brand-new vehicle or choose a used one. There is always going to be benefits and negatives when it comes to both options. It can often boil down to your budget and your intentions for the vehicle. Sometimes deals on new can be better than used vehicles, but then every used vehicle is unique. I personally stay away from cars used by rental companies for the simple reason that renters tend to not take care of the vehicle as much as they do their own.
How long do you plan on having it for?
Finally, how long do you plan on having the vehicle for? It might be worth taking the time to think about your plans. Do you want something that will always have a warranty? One that will have little or no maintenance costs? Or do you plan to keep it for a while? Making the decision on this can also help you when it comes to budgeting and the funding option that is a right for you.
Let’s hope these tips help you when it comes to buying a new car in the new year.
Money-Smart Millennials 