A car is an important asset because it helps you move from one place to another with ease. However, you have to have a proper plan on how you will invest in your car. This will save you a lot of money and future headaches of having bought what you don’t like or a faulty vehicle. Here are some tips on how to make investment decisions when buying a new car.
1- Decide On the Type of Car You Want to Buy
The first thing you should do before buying a new car is decide the type of car you want. You can use a crossover, traditional car, manual, automatic, SUV, or small vehicle. You can choose depending on where you live, the road conditions, your taste, and your preference. Besides, you may buy an electric car, and if so, you need a lot of time searching for the right one. Once you identify what you want, scroll through the internet and read professional reviews from other owners with the same cars and models.
2- Used or New Car
After you have identified the type of car that you want, you have to decide whether you like it new or used. If you settle for a used car, you must search for one with low mileage, has been on the road for 2-3 years, and is still in good condition. You can visit several yards where they sell used cars. Alternatively, if your choice of car is a new one, you can see new car dealers’ websites with favorable prices.
3- Negotiate
Once you have settled where or from whom you want to buy your car, approach the seller and negotiate for the best price. If you believe in cash, let the seller know how much you have and are willing to pay for the car. A good seller will lower the price to less than what you’re ready to pay.
Note that even if your bank is paying for the car, you still must negotiate, and once you land a good deal, you can take the quotation to them to process the payment.
4- Car Financing
Now that you have settled for your car, you need to buy it and take it home with you. At this point, you can get it in cash or take a car loan from the bank or the financial institution of your choice.
5- Get Car Insurance
Besides buying your car, you also have to get car insurance. You can approach your current insurer if you owned a car before. However, if this is your first car, you must talk to a new insurance agent in person or on the phone. Ensure that you bag the best car insurance customized for your needs.
6- Avoid Add-Ons at the Dealership
After negotiating the price for the car and settling for it, you’re handed over to the finance manager. Don’t agree to any add-ons. By this, I mean any approaches to get you to pay for
• Tire protection plan
• Paint protection
• Extended warranties
• Gap insurance
Most new car dealers have add-ons that lead naïve car buyers to pay more than 300% more. This may prolong your loan repayment period or increase the loan payment amount if you use a loan to finance car buying.
