For most people in the United States, the car is one of their
most expensive purchases. So make sure you ponder this issue
properly before pulling out your credit card.
The first thing you might want to look at is whether to buy a
new car or a used car. Some people just refuse to buy a used
car, while others simply refuse to purchase a new one. There are
of course both advantages and disadvantages of both.
So, what's so great about a new car? Well, a new car comes with
all the perks: the latest devices, the color, the interior
design. And you don't have to worry about any problems with the
new car, you are fully covered by the car warranty. And of
course, if you keep your car in good shape, you can probably
extend the life of your car with minimal maintenance. But a new
car comes with the drawbacks as well. The price, for one, is a
major turn-off factor. And once you start driving the car, the
resale value can decrease quite dramatically within the first
two years. Insurance would probably cost much more as compared
to a used car.
How about a used car? It’s definitely much cheaper than getting
a new car, and your insurance wouldn't cost you a bomb. A
popular used-car option is a off-lease used car. These cars are
usually no more than 4 years old and are almost new, mainly
because of the required maintenance and mileage limits. The
warranty is often found intact as well. However, getting a used
car means you may experience more problems with the car, and of
course you have less choice over the exterior and interior of
the car. You should always only purchase a used car from a car
dealer you are familiar with, so when things go wrong it's
easier for you to seek help.
After you have decided on a new or used car, you should look at
how you will use the car. Will the car be a family vehicle? You
don’t want to get a sedan for a huge family, but neither do you
want to get a mini-van for just yourself. Do you need the
state-of-the-art sound system? If you’re an audiophile with
quite some cash you’ll probably want to invest in one, but if
you listen only occasional than it will be nothing more than a
while elephant. What other features do you need or not need?
You’ll definitely want to get things that you won’t regret
getting.
Next, you should probably be looking at financing. If you’re
rolling in cash, you can pay for the car immediately, but most
people pay in installments. You can choose to purchase the car,
lease the car, or rent a car. The difference between leasing and
renting is that leasing is more long term: you pay monthly for
12, 24, 36, etc, months, than return the car at the end of the
lease period, unlike renting a car where you pay by the day or
the week.
Finally, you should look at insurance. Insurance is always
higher for high-risk cars like sports cars. Not only are the
drivers often more reckless, they are also a more common target
for theft and vandalism. Do you really need that cool flashy car
that ‘everybody has’? Save money on buying that car, and save
money on the insurance too!
Remember, purchasing a car is probably your second largest
expenditure, besides your house. Make sure you evaluate all the
options and think through it properly before buying. On a final
note, always shop around, and NEVER buy on impulse.
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