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Planning to buy your first car? Here is everything you need to know

Planning to buy your first car? Here is everything you need to know

 

Planning for anything matters a lot, especially when you are planning to buy a car. It seems exciting but it may be an overwhelming experience too. There comes a lot of hectic work to do which is to to be managed properly when you plan to buy your first car. Buying a car takes a lot of homework; especially, if you are buying a car for the very first time. But don’t worry, we have brought to you a comprehensive guide to everything you need to know before buying a car. So, let’s get started:

Know Your Budget

First of all, you need to determine your budget. As per a thumb rule, the total expenditure on a car should be 25% of your total monthly income. So, you will have to fix a budget that will not affect your other expenses.

You must think about how much you have to spend. If you need a loan, the idea of down payment is not bad for buying a first car, it will reduce your cost eventually.  Higher than average down payment may also decrease the interest rate on your loan which is in your favour. So, all you have to do is think realistic about your budget. 

The Kind of Car

Once you have determined your budget, the next thing you need to decide is the kind of car you want. Choose the car that best fits your requirements, lifestyle, taste, and circumstances. You can also weigh the pros and cons of new and pre-owned cars to select between these options as well.

Do The Research

Research the cars you have shortlisted. Check for the Manufacturer’s Suggested Retail Price (MSRP) and the resale value of each car. The MSRP is the amount that dealers pay to the manufacturers. This information is quite helpful when you negotiate the price of the cars. On the other hand, the resale value of a car is determined by its engine power, fuel efficiency, the popularity of the brand, availability of spare parts, and the number of service centres. Greater resale value is useful when you have to sell the car for an upgrade or during a financial crisis.

Dealer Options and Finances

Checking for the car prices from different dealers is a smart move. One of the biggest mistakes you can make is not checking for the different dealers and the financing options they offer. You can check and compare the interest rates offered by different dealers, banks, as well as other Non-Banking Financing Companies (NBFCs).

Take a Test Ride

Even after thorough research about the car on the internet, take a test drive and make sure that you like the feel of the car. Along with the features and comfort, check the handling, brakes, driving convenience, etc. A quiet and smooth ride is a must.

Calculate the Repayments Before Taking A Car Loan

Buying a car is fun, but taking a loan can be risky! Several factors come into play, such as total cost and length of loan, eligibility, length, and affordability. When purchasing a car on auto finance, you must have realised that you also need to pay a certain amount of interest beforehand. 

You can use a reliable calulator such as CarPaymentCalculator.net. The unique thing about this calculator is you can view the calculation results instantly and it can help you to calculate car price that fits a monthly payment or loan payment amounts, printable amortization schedules, etc. Car Payment Calculator can help you estimate the total loan cost, interest rate, and loan term. This calculation is important in helping you make a car purchase that helps you in the long run and determining how much you will pay for a loan overall. This way, your auto loan process becomes much easier. By comparing various loan rates with different lenders, you can also get the best deal on your dream car. Hence, a payment calculator allows you to analyse multiple loan options and makes negotiating favourability with loan providers easier.

Pre-Owned Car Check

If you are planning to buy a used car, get it checked thoroughly by an expert mechanic before purchase. Doing so will make you aware of the car’s condition as well as any existing or potential concerns. This will also help you decide whether you really want to purchase that car or if the mechanical issues are way too severe.

Conclusion

Purchasing a car, especially the first car, is a huge decision. Therefore, you must do it very wisely. To make sure that you make a wise decision, do proper research and take your time to satisfy every aspect of the car you are going to purchase. We have discussed the most essential points to consider while making a car purchase, follow these tips and you’ll surely not regret buying the car.

Featured Image: Woman car photo created by senivpetro – www.freepik.com

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