Tips for buying your first car


Buying your first car is a big step. If you are considering buying a new car, you may already have worked out a budget. That’s a great first step! However, before you go car shopping, check the list below to see if you’ve factored all potential costs into your budget.

Buying New or Pre-Owned

The smell of fresh leather, an untouched interior, and a spotless exterior make a new car tempting. However, the smarter financial move may be to buy a pre-owned car instead. New cars depreciate from the moment you drive them off the showroom floor.

Pre-owned cars have already gone through this depreciation and can thus make more sense financially. However, used cars can come with risks for uninformed buyers, such as expired motor plans or an incomplete service history.

Warranties and Motor Plans

Once you’ve found a car you like it’s time to consider the maintenance costs. Cars require servicing, which is why dealerships often offer service and motor plans. Here’s a quick look at their differences:

Service plan – The dealership or manufacturer takes the responsibility to service the vehicle. These plans are usually for a fixed time or distance and expire when either the age or distance limits have been met. Service plans usually last for around three years or 100,000 km.

Motor plan – This covers the various parts of the car that extend beyond the limitations of the service plan. The dealership or manufacturer is responsible for fixing or replacing any parts covered by the motor plan if they break during the lifetime of the plan.

Car Insurance Cost

When you’ve found a car you’re happy with, it’s time to check out your vehicle insurance options.  You can get an estimated quote before you buy bought the car by using an online insurance comparison tool. It’s advisable to cover the car before you drive it because, if you are in an accident, the costs involved could be excessive. Understand that, once you’ve collected the vehicle, the dealership is no longer responsible for what happens to it.

When you’re comparing insurance companies, take more than just the upfront monthly costs into account; some insurers include roadside assistance as part of their benefits and some don’t. So, one may seem cheaper, but if you break down and need a tow, it could end up costing you more if you’re paying for assistance from your own pocket.

When evaluating your risk, insurers will take several factors into consideration, such as your age, how long you’ve had a licence for, the location of your workplace and home, etc.

How Much You Travel

How much you travel is an often-overlooked budgeting component. Your fuel to work and back, to family, friends, grocery shopping, and the odd weekend away will factor into the overall cost of owning and using a car. Your car payments and insurance might meet your budget, but the fuel may not. To avoid this, try to overestimate on all expected costs. If you can afford the maximum costs, you are going to have an easier time managing your car budget.

If you are in the market for a new car, you can not only compare insurance quotes on, you can also compare new vehicles, financing options, service plans, and more.

Prices quoted are correct at the time of publishing this article. The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.

(Excerpt) Read more Here | 2019-02-15 08:08:00
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