Tips for Buying a New Car on a Budget
By Graham McKenzie
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 it really is possible to get into a car you will love at payments you can afford. First of all, you need to know how big a payment really fits into your budget. When you are budgeting for you car, don”t forget you also have to pay for insurance, fuel, taxes, repairs, maintenance, tax, license, and registration. But once you know how much you can afford to pay, you can move on to step number two.
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, make a decision about whether you want new or previously owned. At one time people bought new cars because they were, usually, more reliable than news. Now there are many ways you and the dealer can pick out the lemons and choose the cars that are in good condition. You still need, however, to have a certified inspection report and access to the vehicle’’s repair and maintenance history. You especially do not want to buy a car that has had?or, worse, needs?major repairs that are not disclosed to you.
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.
About The Author
Graham McKenzie is the content syndication coordinator for http://www.carinsurancesa.co.za. South Arica’’s leading car insurance portal.