Are you planning to buy a car? Keep these things in mind

You decide your budget before everything. That’s because it helps you to save a lot. Similarwise, before buying a new or an old car you have to decide your budget for a few things. At first, you have to keep in mind your expenses and your savings as well. Decide how much you can afford to spend on a car as many additional costs come with it including insurance, servicing and fuel costs.

Stick to your budget

Many financial companies will suggest you many things at the time of purchasing a car. But you have to ignore these temptations. If you say once that you can afford more, the bill will automatically increase. Keep in mind that there is nothing exists like zero percent loan.

Assessment of car

Next important point is the evaluation of the vehicle. You have to decide whether you need a new branded car or an old one which works just like a new car. Even if your car is just one year old, the price of that car will decrease vehemently.

So you can buy an old car instead of a new one to save money as it’ll work for you in the same way a new one does. A car is not an investment. It comes with different costs insurance, registration costs, maintenance, etc. You cannot recover these costs even after selling it.

People usually buy a house by taking a loan. Car loans are also available, but it’s expensive. Along with that, you have to lease the loan out to get tax benefits out of it.

So if you want to buy a car by taking a loan, choose the loan first. Car loan emphasizes your finance options first. So, taking a loan against security or a personal loan is not a good option. Instead of that, you have to arrange your down payment first.

Choose wisely

After arranging this down payment, you need to finalize whether you need it for personal use or you want to give it on rent. While budgeting, try to figure out the estimated price. You can take the help of different channels. Take the help of the internet. Agents and dealers can also help you to figure out the budget.

Different types of car insurance

  • First of all, you can go for comprehensive car insurance which will cover all the damages made to your car for theft, fire, etc. It will also give coverage for third party damage.
  • Second, you can choose private insurance which will cover all types of risks including accidents, third party liability as well. This one is basically available for private cars.
  • The next one is Commercial insurance that covers commercial fleets that affect your business.

Negotiate and then purchase your favorite car. Don’t waste all your savings on it. If you get discounts, make sure you don’t have to spend money on these discounts in the future. Sometimes some hidden terms and conditions can be seen in these discounts. So, be aware of that.

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