Buying a car is a big decision. It involves a huge budget that makes first-time buyers skeptical about landing the best deal in the market.
The process of purchasing a car starts with considering various options starting from the color, model, features, technical specifications, and reliability. However, first-time buyers should begin with evaluating the most important concern: whether to purchase a used or a new car. This can have a significant impact on the buying process and your budget.
Here are a few tips to help you make the right decision:
1) Consider Both Options
Before analyzing the options of used and new cars, it is important to understand that buying a car is not an investment.
Used cars come with the advantage of depreciated price. If you have a smaller budget, it is recommended to consider this before you make a decision.
This Consumer Reports article gives a brief idea about the additional costs involved in car maintenance. It explains that depreciation in the car’s price is steepest in the first two years. The longer you own the car after the first two years, the lesser it will cost per year.
2) Make a Choice
Picking between a used and a new car can be confusing. Check out these aspects to get a better idea.
When you should buy a used car:
- If you’re looking for lower insurance rates, go for a used car. When a car costs less, the collision and comprehensive coverage also reduce. You also have the option to skip the collision and comprehensive coverage and save more.
- Registering a used car costs lesser compared to a new car. The purchase price of a used car is lower than a new car. The price of a used car will continue to depreciate, but the loss of money is reduced. Moreover, the initial big investment is not required.
- You pay less and can, therefore, upgrade your car to the exact specifications you’re looking for at any point in time.
When you should buy a new car:
- The groundwork involved buying a new car is less. You also have a brief idea about the payment you will have to make. This keeps you financially equipped.
- There are several financing options for first-time buyers. You can choose the best incentive and cash rebate on offer.
- New cars come equipped with the latest technologies, comfort, and design. Safety features and performance are also up-to-date.
- Though used cars are dependable, the fear of frequent repairs and breakdowns always exists. This risk is reduced in case of a new car.
Though new and used cars have their share of pros and cons, it finally depends on the individual’s choice and factors like budget and personal interest to select a particular option.
3) Things You Should Do Before Making the Purchase
- Be prepared with enough information about the purchase you are going to make and know what to expect.
- Start with surfing the Web for information about the car model, specifications, and the average selling price. Look for customer reviews. This will give you a brief idea about the car.
- Researching about the dealership is as important as evaluating your car. You shouldn’t feel ripped off after making this huge purchase. Check for online reviews and experiences of previous customers with the dealer you have chosen.
- Fix your budget and stick to it. Decide if you will be making a one-time payment or will be looking for car loans. If you were to take out a loan, consider paying installments every month. Also take into account insurance premiums, maintenance costs, and fuel charges.
- Test-driving the car model you have chosen is a must. Check the comfort of the seat, the view it provides, leg seating, features, and interior ambiance before closing the deal.
4) Things You Should Do after Making the Purchase
Ensure the paperwork is done. This will include the title transfer and registration.
Though you may have done a pre-purchase inspection in case of a pre-owned car, visit a mechanic for a post-purchase check. Ask a mechanic to inspect the filters, brakes, fluids, and tires. Get on top of repairs and replacements right away.
Consider purchasing accessories like floor mats and seat covers for the car. For a personalized touch, try adding a phone holder or an aromatic air freshener.
A pollution certificate is mandatory for both, a used and a new car. For example, if you have made a purchase from pre-owned cars for sale in Albuquerque, then according to regulations, a car must pass the emission test every two years and during the change of ownership.
Purchasing a car entails detailed research on the different options available for a used or new one. Furthermore, analyzing possibilities and being well prepared for negotiations will help you get the best deal. Consider the smart tips mentioned above, evaluate various options, and finalize the best!
Did we miss any tips? Do mention them in the comments section below.