When buying a new car, it’s important to consider what you’ll be using the car for and what your budget is.
Buying a new car is always an exciting experience. But it can often feel intimidating with such a wide range of options to choose from. After a house, a new car is probably the second biggest purchase you’ll ever make. So, you better be sure to pick the right one. We’ve narrowed it down to these guidelines to help you with your car buying experience.
Deciding on your budget is the first thing you should do. When you make an investment decision like purchasing a car, you’re also making a strategic decision. And unless you plan on paying cash up front, you’ll need to figure out how you’re going to finance your new purchase. You’ll also have to take into account your monthly outgoings like fuel and insurance. Any poker player worth his salt knows that strict bankroll management is key to staying in the game, so set aside a budget and plan it accordingly. A good rule of thumb is to make sure your monthly payment doesn’t exceed 20% of your monthly income.
Asses your needs
You need to think about what exactly you need to use the car for. You want to purchase a vehicle that suits your needs. So, if you have a large household, need a lot of trunk space, or happen to drive people around on a regular basis, then you definitely want to choose a four-door car over a two-door car.
Opt for a smaller car if you want to save money. Small cars are generally less expensive than larger models. They also consume less fuel, so you’ll be saving more money over the long term. Choose a smaller car that suits your lifestyle and can comfortably fit your household.
New or Used
Your budget is going to play an important role in deciding between a new or a used car. Remember that there are pros and cons to both. When buying a new car, you’ll have a manufacturer’s warranty that should last up to three years. Remember that a car is a depreciating asset, and by the end of the first year, a new car loses about 30% of its value. Due to deprecation, you’re going to lose more money in the long run by buying new. When buying used, the car’s first owner will have taken the initial hit of depreciation instead of you.
A used cars tends to be of better value as it will always be cheaper than a new one. Make sure to have it inspected by a qualified mechanic to ensure that it is in good condition. You might also want to obtain a detailed vehicle history report before purchasing. If you are going to buy a used car, try to avoid buying one that has had several owners.
Sometimes buying a used car can feel like assuming someone else’s problem. It doesn’t matter how well cared for the car was; naturally some parts are going to be a bit worn out. Often buying a new car is less costly to maintain than buying an old car that is more expensive to fix up. Ask yourself if you can afford to maintain and repair a used car.
Buying vs Leasing
There are advantages and disadvantages to both. Leasing a car is often cheaper than buying a car outright, as it will have lower monthly costs. There’s also no need to worry about vehicle depreciation. Leasing is a good idea for those who enjoy driving a new car every couple of years. But if you really want a car to feel like your own and don’t mind keeping it for a longer time, then buying a car outright might be the best option for you.
Now go find the right car for you
Buying a car is often a long and involved process, so you want to be certain that you’re buying the right car that suits your lifestyle and budget. Hopefully this guide has helped you narrow down your search for a new car. Do plenty of research and make use of car review websites and other comparison sites. You can also check out some of the reviews on our site for the lowdown on the best new Australian cars.