5 Tips before buying your first car
1. Think about the bigger financial picture
In the excitement, some may tend to rush into their first car purchase because at face value, it seems like a pretty good deal. Be sure to look at all the other costs involved as well, like fuel efficiency and the maintenance of your car (Fuel efficiency/Maintenance). Your budget should allow you to cover these additional costs.
2. Don’t rush things and think long-term
You might feel like a certain car is the absolute perfect fit for where you are at the moment, but be sure not to rush into things and think about where you might be in five years. Are you planning to start a family in the near future? Will you soon need a larger car? Take this into consideration before spending too much of your budget on the present tense. If you have a certain car in mind, take it for a test drive, do your research and take a look at some other options available. The critical point here is that you want to be informed before making a purchase. If you know someone with a similar car, talk to them and ask about their opinion and experience.
3. Be honest about your budget
When choosing a car, make sure that you clearly set up a realistic budget that you’ll be able to sustain. After deducting all your expenses from your income, after tax, you will be left with your disposable income. It’s recommended that your car-buying budget should not exceed roughly two thirds of that income. Consider that this budget should include your car’s instalments, running costs, petrol and maintenance. Apart from this, be sure to also take interest rate fluctuations into account. The majority of first-time car buyers might forget that they should opt for a slightly higher budget for monthly repayments during the finance period of three to six years..
4. The pricing of the parts
Now, this is something that you should definitely keep on the top of your list of things to consider. Often, you will find that cars that seem well-priced, might turn out to be more expensive in the long run due to the cost of their parts. Be sure to look into the pricing of parts for when your service plan comes to an end.
5. It’s ultimately all about you
Your first car isn’t just a mere mode of transportation, it’s your first real taste of independence. It’s freedom and it’s all yours! It’s your go-to-friend that will take you to beautiful places and play your favourite songs on your way there. It’s where you spend time in traffic during the early morning work commute and it takes you back home safely. You want to make sure it expresses your personality, where you are in life and where you want to be. Make sure your car is something you enjoy and that it fits to your specific lifestyle requirements.