With a broken fridge or any other appliances in the house, considering a replacement is a very easy decision to make. However, that may not essentially be the case while buying a car. To most people, it’s arguably one of the biggest financial decisions they make in their lives. Unless you are a multi-millionaire or heading there, you will most likely have such a decision to make. It may not be easy but equally not the hardest one to especially with the right information at hand. Deciding on what refrigerator to take home may not need any research or too much concern on its looks, but for a car, most people will want to know more about it before stepping into their favorite dealerships. This is the case to both new and repeat motor vehicle buyers. As an important choice to reach, a few decisions must be made.
Before even settling for a type of car one is willing to buy, the cost of the actual car will need to be determined first. This can be done through financial assessment of self. A further determination to make is whether to pay cash or seek motor financing with the latter being a choice to many. Others opt for leasing!
Buy or lease
In the long run, most people would support buying a car to leasing. Leasing involves making monthly payments for a specified period after which the contract expires, and the whole process commences all over. Buying whether on financing or upfront comes with the knowledge on the value of the car unlike the confusing state of leasing. Most people opt to lease based on the mindset that, with monthly payments, one gets a good car. The bitter truth is, however, if you cannot afford to buy the vehicle off you can’t afford it.
Cost of a new car vs. an old one
It’s a very famous assertion that new cars depreciate exponentially immediately they are driven off the dealer’s premises. While this argument is entirely correct, some opt to let others do the drive off and after two to three years buy it off at a reduced price. It is a clever gesture, to go for a fairly used car especially those within factory warranty and have a decent resale value. This is the best first line of defense in avoiding getting stuck with a piece of junk.
Differentiating between need and want is a right decision to make after determining how much to spend on a car. Need has a sense of requirement. For couples with kids, a roomy and safe type of a car is a need while for a simple young bachelor, affordability will determine need too. To everyone, there are a set of requirements to be met in deciding on a car. Accurate decision-making has long term satisfaction attributable to it.
Type of a car
Following a determined need is a decision on the make of the car to go for. Extensive research is helpful in choosing the right one. Determined through research, nearly half of vehicle buyers make a decision about their new cars based on their previous ones. While that is one way of going about it, research on facts such as technology on safety, fuel consumption, alternative energy cars, fuel economy among other factors may narrow down the list of liked cars. Brand reputation and warranty offers are also important factors to consider. Budget and need may influence the type one chooses but rarely limit on the spectrum of choices available out there.
With a certain car in mind, even before visiting a dealership, sources of funding should be well determined. Remember a budget has already been established. Whether you are buying out the car or getting a loan from a financial institution, one needs to be acquainted with a few finance related concepts such as credit rating. For financing, interest rates should be a very conscious factor to note. An excellent credit score earns less interest rate as well as comparatively less monthly installments. Henceforth, it’s imperative to be aware of one’s credit before signing against dotted lines. Most people go for credit union loans for they have attractive rates, better than banks.
Whether a first time or a repeat buyer, taking these steps earnestly, among others available for research, will reduce a car buying decision to a daily conscious decision like any other.