The Quick Guide To Buying A Vehicle

The Quick Guide To Buying A Vehicle

Buying a​ car will most likely be one of​ the largest purchases you make in​ your life and so its importance cannot be understated. With such a​ huge array of​ vehicles to​ choose from, throughout the various price ranges, research will be the key to​ a​ successful purchase. When you are thinking about buying a​ car there is​ one important factor to​ appreciate – in​ financial terms nearly all vehicles are liabilities. That is​ they LOSE money and are an​ added burden to​ your finances – not only the initial purchase but also the insurance, gas costs, repairs and then the depreciation when you come to​ sell it.

That said, they are also fast becoming an​ essential possession in​ the modern world – only major cities have comprehensive public transport systems, so to​ get around at​ your convenience there is​ only one option – buy a​ car.

The first item to​ consider is​ the method of​ payment for the vehicle – buy to​ own or​ lease over a​ period of​ time. Either way you will need to​ calculate your budget to​ see what you can afford not only up front or​ monthly payments but also the following:

1. How reliable a​ make of​ car it​ is​ – are the parts expensive?

2. How long is​ the warranty period and how comprehensive is​ it?

3. How much does the insurance cost?

4. What are the service intervals and how much do they cost?

5. The economy of​ the vehicle compared with the type and distance of​ driving you normally do.

6. Style of​ vehicle – do you need a​ truck or​ SUV for local/inner city driving? How many passengers do you carry?

7. How long will you want to​ keep it? (Marriage, kids or​ relocation?) Don’t sign up for expensive 5 year financing if​ you only want to​ keep it​ for 12 months.

8. What is​ the MRP of​ the vehicle – always look for discount.

9. What is​ the resale value of​ the vehicle – is​ the depreciation high?

Methods of​ Purchasing

1. Buy new – This is​ fast becoming a​ more affordable method of​ buying a​ car and you can either pay cash up front (if you’re lucky), arrange your own financing or​ take out the financing from the car dealer (if buying from a​ dealer). Most domestic manufacturers will offer either large discounts for cash payment or​ 0% financing over a​ period of​ up to​ 5 years. The imported vehicles (far eastern/European) are very popular and most don’t need to​ offer such large incentives for sales as​ the reliability and economy of​ their products are in​ high demand.

There seems to​ be 2 major factors when choosing a​ new vehicle – price over quality. a​ Japanese / European imports have the quality but you will pay handsomely for it​ – a​ North American vehicle (GM, Ford, Chrysler/Dodge) definitely have the price and incentives so that will come down to​ personal choice.

2. Buy used – The most likely choice of​ many of​ us either through a​ private sale or​ a​ used car dealer. Many private transactions are completed due to​ reasonable pricing (agreed between the seller and purchaser) that is​ normally based upon the condition of​ the vehicle (any crashes or​ service history), the age, and fair market value. The main drawback is​ that these sales are completed “sold as​ seen” and there is​ very often little or​ no comeback should the vehicle subsequently fail shortly after the transfer of​ ownership.

It is​ a​ necessity to​ have the vehicle history checked if​ you are committing to​ a​ private transaction. if​ the vehicle is​ stolen or​ has finance owing on it​ there is​ a​ very strong chance of​ it​ being repossessed should it​ be uncovered. These checks also show the last known mileage (prevents clock tampering) and also any reported collision damage (written off and then rebuilt) and for a​ small fee can save an​ awful lot of​ heartache and financial difficulties.

If you buy from a​ reputable dealer you will pay more for the vehicle but will normally be able to​ trade in​ any old vehicle. Again you will not be paid too much for the trade in​ but not having to​ worry about the sale of​ the old vehicle may well offset that. You should also have a​ decent warranty with the vehicle you buy which may be the balance of​ the manufacturers warranty or​ up to​ 3 months from the dealer. if​ it​ is​ a​ dealer warranty, make sure you fully understand what is​ and more importantly isn’t covered – the small print must be read and understood. Depending upon the size of​ the dealership, you may be able to​ purchase an​ extended warranty, again check what is​ covered and for how long – you really don’t need any surprises when the problems arise.

3. Auctions are another method of​ purchasing which can save you a​ lot of​ cash if​ you are brave enough. You will have the chance to​ look over the vehicles prior to​ the auction and the auction company will usually run some background checks to​ avoid selling stolen cars. if​ you know what you are doing this can really be a​ cost effective way of​ buying a​ car but also probably the one with the highest risk.

4. Lease – This entails a​ down payment (normally) followed by a​ monthly payment which will be less than the financing of​ a​ new vehicle payment. This method isn’t everyone’s idea of​ monetary sense as​ you make payments but will never have any equity at​ the end of​ the lease term. The major benefits are that you will be able to​ have a​ new car every few years (usually before the warranty period expires) and simply give the vehicle back in​ exchange for the next new one. You will most likely have a​ pre agreed limit on mileage that will cost you extra should you surpass it​ and you will be liable for the servicing costs.

Whether you are buying a​ car - new or​ used - never pay the “price” on show – these are heavily inflated and you should be able to​ negotiate a​ substantial discount. if​ not – go somewhere else – you are the customer that they should be bending over backwards to​ please. Do not be afraid to​ walk out on a​ dealership if​ you are unhappy with what’s on offer and definitely visit several different dealerships and play them off against each other to​ gain a​ favorable price.

More detailed information on Buying a​ Car can be found at​

Related Posts:

Powered by Blogger.