Man touching a new car

Things to Consider When Buying a Car

Many motorists find the process of buying a new car too intimidating for their liking. Instead of taking chances with your hard-earned cash, you’re better off making informed choices right from the get-go.

The process of buying a new car can be daunting, especially when you haven’t done it in a while or you’re doing it for the first time. You might have a hard time choosing a car model that will suit your needs for years to come. When the weighty nature of the decision finally hits home, the process becomes even more intimidating.

Luckily, going long on the research and planning can help you out of the bind and get you a car that suits your lifestyle. Once you’ve visited an SUV dealer and identified the vehicle that you want, you can decide whether to buy or lease one.

Evaluate Your Needs

Your definition of the right car depends on your expectations of the vehicle. You might be the kind of person who uses a car to make a statement. Or you could be the type of a driver who is more concerned about the performance of the vehicle.

Both of these drivers are looking for cars based on how they make them feel. On the other hand, if you’re looking for a daily ride for work, you can employ a different thought process. You should consider the carrying capacity, mileage, and safety features of the car.

Define Your Budget

Couple choosing a car to buyUnless you’re planning to pay cash for the car, you’ll have to finance the purchase with a car loan. You need to be realistic about the amount of money that you can dedicate to paying for the car each month. Experts recommend that you cap the amount at 15 per cent of your monthly paycheck.

Even when going for a used car and taking advantage of the lower prices, the same principle applies. If you opt to lease instead of buying, the cap is set at ten per cent of your monthly salary. You need to set aside about seven per cent of your income for insurance and fuel costs.

Beef Up Your Knowledge

A car is the second largest item on your budget after the mortgage, meaning that it’s a significant purchase. There’s no point in committing that much money to a car that you picked on a whim. Instead, you need to carry out in-depth research to identify the vehicle that meets your specific needs.

Thanks to the Internet, you can have all that information at the click of a button. Consider the real cost of ownership when making a decision. Accessing such information can help you make an informed choice base on logic and reason.

In the end, buying a car can be a daunting process if you’ve not taken the time to carry out extensive research. Some skilful salespeople are likely to steer you towards a model that doesn’t fit your needs. You might end up leaving with a car that beyond your budget or committing to financing plan with unfriendly terms.