Shopping for a New Car on a Budget
Driving a new car is a lot of fun, but buying one can be a major pain. Throw in the tight credit market due to the economic crisis, and that makes shopping for a new car on a budget all the more frustrating.
But you can get a car you’ll love for payments you can afford. First of all, be sure you know how much you can afford. This is where you have to start. Take a long, hard look at your budget, making sure you include insurance premiums, taxes, gas maintenance, license, and registration in your calculations. Once you know how much you can pay, the move on to the second step.
Second, think about how you will use your vehicle. Will you be doing a lot of city driving? Highway driving? Do you need room for several passengers or room to haul luggage or equipment? Your budget and needs will determine what kind of car you should shop for.
Next, decide on whether you want to purchase a new car or a used car. In the past, many people would buy new cars because used cars were considered unreliable. However, with improvements in technology, cars are better and lasting longer, making used cars a worthy choice. If you do decide to go the used car route, make sure you have access to the vehicle?s repair and maintenance history. You don?t want to purchase a used car that has had major repairs that have not been disclosed.
Then you decide whether you want to buy or else. Leasing tends to cost less per month and demands a lower down payment. It’s an option worth considering if you trade cars every two or three years. But if you keep your cars until they fall apart, and you can afford a larger down payment, buying is a better option for the long run. If you live in a rural location and commute to the city, or if you use your car in sales, leasing usually is a poor choice, since going over your allotted miles can be extremely expensive when you return the car.
Regardless of whether you buy or lease, be prepared to negotiate. Get bids on cars from several dealers. Shop around for sales and specials, especially if you are buying a car at the end of the year. Dealers often want to get rid of cars at the end of the year in order to make room for new models. The internet makes it easier than ever to negotiate and shop around for good car deals.
Finally, if you are going to buy a car and need a loan, get preapproved first. Having that preapproval in hand makes you a much more attractive customer to an auto dealer, and that makes them more likely to negotiate with you and give you a good deal.
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
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