Buying the first car is probably the first major purchase you make in your lifetime. The possession of a personal car brings a feeling of accomplishment. However, as it involves an investment of a fortune amount, it is expected that you approach the process with ample of considerations. Here is your guide that will help you to take the best decision regarding the purchase of your first car.
An old car of a brand new vehicle?
While you are about to buy your first car, you have the options to invest in a brand new car, or you may opt for a used vehicle. Especially, if you are on a tight budget, a used car in the perfect running condition is a good proposal. It is because, the cost of such cars will be substantially lower than a new car. In addition, the insurance cost for a used vehicle is substantially lower than the price you would have to pay for insuring a new car. Most importantly, before you get accustomed with the traffic condition and acquire the skills to drive safe, used car is a good option. If you decide to opt for a used vehicle, ensure that you conduct a detailed testing of the car’s condition and the check, if all the car related documents are in the right order.
Finance Vs. Out of pocket investment
Once you have decided the model, comes the consideration about the financing option. These days, finding a Car finance scheme is not a big deal. These schemes spares you from investments out of pocket. However, it comes for a cost. Before you opt for a vehicle loan scheme, check the rate of interest, the repayment tenure as well as the terms and conditions that govern the finance scheme. If you decide to opt for a finance scheme, you should discuss with the financier regarding the customization of the repayment schedule that will make it easier to manage the repayment. It will be wise to pay off a major part of the cost out of pocket, and avail a portion of the cost as finance. This will substantially reduce the amount you pay as interest.
Leasing Vs. Buying
If you are planning to have a car for a shorter span and you decide to keep the monthly cost low, leasing is a good option. However, on the long run, this is not a fruitful proposal, as after the lease period is over, even after paying some fortune amount as the leasing cost, you will never have an asset to your name.
Give a good consideration of the probable resale values, the mileage that the vehicle offers, before you decide on the model. Before you actually buy a car, you may avail it for a day for a test drive. In such instances, you can get one day car insurance. This will offer you all the coverages and benefits that are usually availed from car insurance policies.