It’s fun to drive a new car, but buying that new car can be a major pain. Add in the credit crunch due to today’s economic crisis, and you can find buying a new car you like that won’t break your budget really frustrating.
But you can get a good deal on a car without breaking your budget. First of all, figure out what you can afford. This is the most important step and should be the first place you start. Sit down and take a good, hard look at your budget. Figure out what you can realistically afford. Make sure you include insurance premiums, gas, maintenance, license and registration in your costs. Once you have a shopping budget, you can move on to the next step.
Secondly, consider how you will use your new car. Will you do mostly highway driving? City driving? Do you need room to haul luggage or equipment, or is passenger room your first priority? Your needs and your budget determine the kind of car you should shop for.
Next, decide on whether you want to purchase a new car or a used car. In the past, many people would buy new cars because used cars were considered unreliable. However, with improvements in technology, cars are better and lasting longer, making used cars a worthy choice. If you do decide to go the used car route, make sure you have access to the vehicle?s repair and maintenance history. You don?t want to purchase a used car that has had major repairs that have not been disclosed.
Then you decide whether you want to buy or else. Leasing tends to cost less per month and demands a lower down payment. It’s an option worth considering if you trade cars every two or three years. But if you keep your cars until they fall apart, and you can afford a larger down payment, buying is a better option for the long run. If you live in a rural location and commute to the city, or if you use your car in sales, leasing usually is a poor choice, since going over your allotted miles can be extremely expensive when you return the car.
Whether you decide to buy or lease, be ready to negotiate. Get bids on the model you want from several dealers. Especially at the end of the sales year, look for specials. Dealers want to get rid of cars at the end of the sales year to make room for the new models. Look on the net to find even more sales and to shop around for good deals.
Finally, if you plan to use financing, get your loan approval before you even go to the dealership. Getting your financing approved in advance makes you a much more desirable customer, and you are far more likely to get their best deal.
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
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