So you’ve managed to take out a loan or find enough cash down the back of your couch to finally make the purchase of your lifetime and invest in a brand-new set of wheels! That’s great and undoubtedly a milestone that’s worthy of recognition.
However, if this happens to be your first rodeo, there are some things to keep in mind that are worth considering in order to avoid utterly regretting your decision. This post will explore a few points that every first-time buyer ought to know, and that range from the blindingly obvious (although no less valuable) to those that are a little more esoteric.
Check What Kind Of Warranty Is Offered With The Vehicle
The benefit of buying a new car over a used one that already has a decade or more of use is the warranty that usually comes with it. These warranties vary in value and typically include some sort of yearly value or up to a specific mileage. However, not all warranties are created equally, with some manufacturers going well above what others offer, thanks to their confidence in their products. For instance, when it comes to Hyundai vs Kia, you should receive a 5-year warranty in the case of the former and a 7-year one in the case of the latter. Both dramatically surpass the standard period of three years that many manufacturers offer, making these models one of the more desirable options on the market when looking at it from this point of view. Outside of how long you are covered, you should also check what is covered and how easy the process of claiming the warranty actually is when you need something fixed.
Understand Your Budget And Financing Options
Budget is something that we never want to think about, but think we must unless you happen to be the recipient of a trust fund from a wealthy parent! There is no getting around the fact that buying new is a costly endeavor, and the moment you drive a new car off the lot, it will rapidly depreciate in price. This isn’t an issue if you plan on keeping the vehicle for several years, but in order to fund the purchase, you will need to evaluate where you’ll acquire the funds. For most, finance will be the most amenable option as it opens up far more options and helps you avoid blasting all of your savings on one purchase. Moreover, if you are a financially savvy individual and are able to pay back the loan on time in full, you can use your credit card to build up your credit rating and even get rewards if you select the right card.
Consider Fuel Efficiency, Insurance, And Maintenance Costs (The Hidden Expenses)
These are all hidden costs as they tend not to be something that most folks think about when looking at the sticker price of a car. Nevertheless, it’s vital to understand that when you invest in a vehicle, you aren’t merely spending money on the car itself but on all of the requisite components of the task. This means finding vehicles with fuel efficiency that you can afford on a regular basis (or, in other words, avoiding a V8 F-150 if money happens to be tight), making sure the insurance premiums won’t cripple you financially, and of course, knowing what maintenance entails. For that last point, you can sometimes buy a very affordable vehicle but end up spending a fortune on things like new tires since they happen to cost far more than you anticipated.
Test Drive Before You Sign On The Dotted Line
When buying anything over a certain amount of money, you need to make sure it works as described and feels as though it matches your desires. When it comes to a new car, this means taking it for a test drive and getting a feel for how it maneuvers and, most crucially, how it feels to drive. If it’s not comfortable or just doesn’t feel right (when you know, you know), it’s perhaps a sign that you ought to head back to the drawing board and look for other models that match your needs.
Don’t Be Afraid To Haggle Some Money Off
When it comes time to put pen to paper, you should never be afraid to spend a bit of time haggling to get the price nearer to something you are happier with. Now, we need to be real here…you aren’t going to knock off thousands of dollars from the listed price. In fact, you might only be able to bring the price down a small amount. But the point is that the more you push (within reason), the more likely it is that you’ll be able to keep more money in your back pocket to spend on adding the things you like at a later date.
Investing your hard-earned money into something as expensive as a new car can be both terrifying and deeply satisfying…as long as you get it right! By following these tips, you should end up with a vehicle that is precisely what you’ve always wanted, sans any of the pain that can arise from buyer’s remorse!