1. It’s Budgeting time!
The first step in buying a car is to see how much you can afford to pay. This includes not only the purchase price but also ongoing costs like insurance, fuel, maintenance, and registration. It’s recommended to spend less than 10% of your take-home pay on your car payment and less than 20% on total car expenses to maintain a healthy budget.
2. Choose between brand new or used cars
New cars come with the latest features, warranties, and that new-car smell, but they also depreciate quickly unfortunately. Used cars are more affordable and have slower depreciation but may come with higher maintenance costs. Buying from a car dealer can help you avoid being scammed by dodgy private buyers.
3. Research and Choose the Right Car
Identify what type of car fits your needs by considering factors like your lifestyle, driving habits, and space requirements. Ask yourself questions about your daily commute, cargo space needs, and preferred features. It’s way better to spend more time on research, than rushing into a purchase.
4. Get Some Extra Cash By Selling Your Old Car
Before you buy your new car, make sure to sell your old one to increase your spending power. You can sell your car privately, or to a cash for cars buyer if you prefer an instant cash experience.
5. Test Drive and Inspect the Car
Always test drive the car in person to see how it handles and to ensure it meets your needs. For used cars, get a vehicle history report and have a trusted mechanic inspect it to uncover any potential issues.
6. Make Sure To Negotiate On Price
Don’t accept the first price that comes your way! When selling your car this can be the most difficult part of the process as you have to deal with multiple buyers and potential low ballers. This method can take anywhere from a few days to months, depending on how strictly you are on reaching your dream price.
7. Consider Additional Costs and Warranties
Factor in additional costs such as insurance, taxes, and registration fees. Consider purchasing an extended warranty for added peace of mind, especially for used cars. Compare insurance rates for different models to understand how your choice of vehicle will affect your premiums.