One of the milestone purchases that most individuals aim to achieve during their lifetime is that of owning a car. While the purchase of a new vehicle is a good investment, over time, the value of it continues to depreciate unlike the purchase of a house. Moreover, with the plethora of options available across budgets and features, narrowing down the choice of your next car can become a bit confusing. Another significant factor that plays into this type of purchase is cost efficiency. :
A number of working professionals tend to defer their goal of purchasing a car because of budgetary constraints. If you are on the lookout for a new car and are not sure of how to make a decision that will give you what you are looking for in the most financially viable way, the following tips might help:
1. Research
The first step that one should take when thinking of looking to buy a new car is to do extensive research about the type of vehicle that they want to purchase. Some of the areas that should be examined very closely apart from the price of the car include fuel efficiency, overall performance, cost of insurance, the reputation of the car manufacturer, after-sales service and customer reviews among other factors.
2. Timing
One good way of making sure you get the best price on a car that you want is to time your purchase. Usually, a car that has been launched fairly recently will carry a higher price tag than one that was launched the previous year. Additionally, some car manufacturers offer special discounts and perks during the festive season.
3. Financing
When looking to buy a new car, financing the purchase plays a major role. If you are looking to apply for a loan from a bank, thorough research must be conducted before a decision is made. Banks offer car loans at different interest rates and, in some cases, also provide a few special offers. Banks usually tend to provide their customers with a loan amount that is usually around 80% of the vehicle’s on-road price. Additionally, the repayment tenure ranges from 1 year to 7 years. There are also a few car manufacturers in the country that provide financing options to prospective customers. Furthermore, car owners who provide loan options usually offer discounts or freebies with the car.
4. Used cars
If the age of the car is not an issue, buying a used car is a great way to save money on a purchase. Since cars have a somewhat high depreciation rate, used cars tend to be a lot cheaper than new cars. There are a number of advantages associated with buying a used car – the insurance cost is lower, the rate of interest charged by banks on used car loans are lower, and the depreciation rate on the car is much lower than it is for a new one.
5. Exchange offers
If you already have a car and are looking for an upgrade, you can trade in your old car. A number of car manufacturers offer customers a lower price on a new car when they exchange the old one.
The above tips can help with decreasing the cost of a new car. Furthermore, getting a warranty extension, and avoiding purchasing a car insurance policy from the car dealership can help with lowering the cost of the car.
