lists & guides
Buying a Car: the Ins and Outs
Saturday, January 09, 2021
Right now, more and more people are looking into buying a car. So, if you’re considering buying your own set of wheels, you’re not alone! The coronavirus and Covid-19 pandemic has seen increasing numbers of people trying to keep their distance from others and only come into contact with members of their own household in order to reduce the spread of the virus. This isn’t always possible on public transport - especially during common times of travel when the transit can get busier. By having your own vehicle, it’s easier to travel without having to come into contact with anyone else. Having a car also opens up opportunities such as being able to travel around public transit operating hours and being able to leave your home and get straight into your vehicle rather than walking to public transit stops and stations. But of course, buying a car isn’t always easy. There are countless things you need to take into consideration before getting started.
Budget
The first thing you need to do when planning buying a car is to determine your budget. You need to make sure that you can comfortably afford your car as well as the ability to pay all your other bills, and have a little disposable income left over. Ideally, everyone should try to live to a budget in order to avoid overspending and to effectively manage finances, though that can sometimes be difficult due to cost of living. But creating a budget can help to somewhat alleviate the difficulties of possibly living paycheck to paycheck. To create a budget, it’s important to first figure out your salary after taxes and other essential contributions like social security, insurance costs, etc (what you actually “bring home”). Then deduct essentials such as rent or mortgage payments, energy, water, food, and outstanding debts. The money left over is referred to as “disposable income” and that should cover your car and general spending. It’s also important that when coming up with a budget for a car, don’t just deduct the monthly cost of the car itself. You’ve also got to consider costs such as car insurance, fuel, servicing and maintenance costs, and general upkeep of the car.
How Far Are You Willing to Travel?
Most people aim to buy cars from their local area, as it eliminates the need to travel long distances to pick cars up. So, try checking out nearby dealerships and a limited search location when starting to look for a vehicle. Of course, if you find your dream car a little further away, you can always use car shipping services to get it to you safely and securely. When I purchased my dream car, it was almost two hours away, but it was “the one” and they could meet my terms. Don’t forget to negotiate! With so much being available online now, you can talk terms and get down to the nitty gritty before even heading to the lot.
New or Used?
A big decision you may find yourself making is whether to go for a new or a used car. New cars are nice, but they lose a lot of value as soon as you drive off the car lot. Instead, it’s generally advisable to opt for an almost new car with a reduced price tag.
Buying a car is a big decision. At the end of the day, this is probably the second biggest asset you’ll ever invest in after your home. So, take your time, don’t rush and do your research. You’ll inevitably come to the right decision. And with tax season here, it may just be the perfect time to do so!
Tell me about your dream car below.
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