What Car Should You Buy?

What Car Should You Buy?

You’ve done your research. You’ve compiled brochures and visited several websites for information on car loans and different vehicles available in the market.

And yet you still can’t decide which car you should buy.

Buying a car is no easy decision. On one hand, you have to carefully balance your wants with your needs. And on the other hand, you need to understand the impact of your decision against what your financial standing would be like over the short and long term.

As such, you shouldn’t rush yourself into making a decision.

Take a measured approach to buying a car

Fortunately, the information you need to make an informed decision is readily available, mostly online.

Today, you will find different websites that review the pros and cons of each vehicle on your shortlist as well as your available options for financing your vehicle purchase.

Simply put, the asymmetry in information on cars has tipped in favor of consumers.

If you are planning to buy a car, here are some of the steps that you need to undertake.

Be prepared, buy prepared

There are three important considerations that you should factor in when you are planning to buy a car — your lifestyle, your budget, and whether you want a new or used car.

Take advantage of the information readily available online. For greater ease, you might want to start with using interactive tools that help you choose a particular model based on pre-selected factors.

From there, you can narrow down your choices by researching each individual model on your shortlist.

Setting a budget

One of the worst things that you can do when you are buying a car is coming in blind without any specific budget in mind.

As soon as you possibly can, determine how much money you can truly afford to allocate toward the purchase of a car. For starters, you can use online affordability calculators.

These calculators allow you to modify different options like monthly payments and down payments until you find a scheme that is suitable to your intended budget.

But apart from earmarking funds for the purchase of a car, you should also consider other expenses associated with owning and maintaining a vehicle. These include insurance, registration, fuel, basic upkeep, and emergency repairs.

Factoring in your lifestyle and other factors

Before you rush in to a bank to secure a car loan, there are a few other critical factors that you need to pay attention to.

First, determine what will be the main use of the new vehicle. Will you use it mainly for commuting to work? As a family vehicle? Or for weekend trips outside the city?

Take into account who will be using the new vehicle. Will it be your daily driver? Or will it be used primarily to ferry the kids to school and their activities after class?

Make a list of must and nice-to-have features. In an ideal world, you can get all the features that you want in the car that you are planning to buy. However, some features are optional and can cost you a lot of money. As such, make a list of the features that are crucial and ones that you can do without.

Exploring available options

Now, more than ever, consumers are spoilt for choice. From hatchbacks to SUVs, today’s consumers have several options to choose from.

  • If you want a daily driver, consider buying a city car. This type of car is designed to have two to four seats mounted on a compact frame. Another advantage of this car is that it is fairly easy to drive and park.

  • SUVs have become popular in recent years due to attractive features like ample storage and space. Although these are built like 4X4s, SUVs are used mainly for city roads.

  • Superminis, just like city cars, are compact and easy to drive. However, these vehicles are a bit larger and often have more upscale features.

  • Coupes come in two- and four-seater varieties and are popular for their sporty appearance. But the tradeoff of that appearance is less room for passengers and luggage.

  • MPVs are ideal for families for their space and storage. Some MPVs can handle as many as seven passengers.

Now, are you ready to make a purchase?

Categories: Finance

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