Buying a new car has always been the subject of excitement until you discover the challenges that are going to cross your way while you make a decision. New or second hand the excitement of getting the car itself takes you on your toes to do enough research and then buy the best one. But how to find out which is the best car for you?
Step-Wise guidance to purchase a new/used car:
1. Setting A Budget
Setting a budget will give a direction to your search. Financial advisors suggest saving 10 – 20% of your monthly earnings to spend on the car (depending on your other expenses), some suggest pre-tax while some go for post-tax. While some say your budget can be half of your per annum savings. Well, whatsoever suits you best, before you land on any conclusion with the budget do consider insurance and fuel.
Insurance – If you buy a new vehicle, the insurance amount will go up as it is more expensive than its secondhand version. The basic rule is, newer and faster the car, the more is its insurance value. So clearly, the basic Chrysler Pacifica minivan will cost less than the wind sliding Porsche 911 Turbo S.
Fuel Costs – The Environmental Protection agency facilitates free tools to assess the fuel economy of the car dated back to 1984 – till date. Take advantage of the tool to compare the fuel efficiency of the new and the secondhand car you have your eyes on.
2. Research For the Best
Now that you have a pre-set budget and have sorted your insurance preferences, it is time to find the best one in your budget. This is where the real actions begin. Cars are the second most expensive thing you own – the first being your home. Whether you are buying or leasing the car, take time out to get the best functions & comfort in your budget.
Leasing is basically the option when the new car you want supersedes your budget. You can get the car for a monthly fee (depending on the model). Most of the car leases are for 2 to 4 years. This way you are not stuck with the car for a long time (regardless you are required to buy the insurance).
3. The best time to buy the car
End of the model year – The model year falls around August – September when the current year’s car model does not remain the newest. Car Dealers start to get next year’s models, making the previous models cheaper.
End of the calendar year – The end of the calendar year is probably the best time to buy a car as the dealers plan to get rid of their old stocks as much as they can. This gives you an edge on negotiations.
Black Friday or 3 days Holidays – While it is a holiday bonanza for us, it is their way of stock clearance. You might have spotted dealers saying they have the deal for “insert any holiday”, but the backstory is they are cutting their expenses on hoardings and ads.
Nay to Springtime – Springtime is the time when people are looking to spend their tax refunds, knowing that dealers are adamant about their fixed prices. Contrary, big festivals like President’s Day and Memorial Day fall in spring – these are traditionally the good times to make car deals.
4. New Or Used Car
New Or Used Car – Judge On Their Benefits
| New Car | Used Car |
| Latest safety technology and functionality | Gives you a financial benefit. |
| Easier, faster, and less stressful | Secondhand means you can get the model you want for just half of its showroom value. |
| Amazing Style And Stellar Performance | It is feasible yet reliable. |
| They are more energy efficient |
5. Negotiate
With this you are standing in front of your dream car – new or used. Go for a test drive to make sure you get what you want. Payment? Wait. Negotiations might be stressful at first but getting the best car deal will make you feel proud every day you drive the car. Note that negotiations are less stressful if you buy from the online car marketplace as you get a larger catalog with competitive rates there.
Congrats
Seal the deal for the best car you could ever get in your budget. Get guidance on the paperwork from your online car dealer and bring home your dream car. Happy driving..1!