Five Mistakes to Avoid when Buying your First Car
Buying your first car is an exciting milestone, but it’s all too easy to get caught up in that excitement and purchase more car than you can afford. If you’re buying new, you’ll want to keep a firm budget in mind as you start comparing your options. On the other hand, you may spot what seems like a great bargain on a used model, only to find that it’s a dud when you drive it off the lot. In addition to these issues, you’ll want to keep the following common mistakes that first-time car buyers make in mind. This will help you avoid them and find the right car to fit your lifestyle and budget.
1. Rushing to Buy
Whether you’re buying new or used, you might feel the need to jump on a good deal if you see one. However, remember that
new cars come down the pipeline all the time, so there’s really no need to rush unless you’re in immediate need of a vehicle for work. It’s better to take your time and research all of your options carefully before you make this important decision.
2. Not Taking Running Costs into Consideration
In addition to the sticker price of a car, you must also look at additional factors that will cost you money over time, particularly if you’re on a tight budget. High fuel efficiency, a warranty or low cost of repair, and the ability to retain value over time are all factors that could set a vehicle apart. You ultimately want to choose a reliable vehicle that will be easy to sell when you’re ready to move on. Take the time to do your research, reading reviews before you even take a test drive. For example, if you know you want a small car for commuting, you could read this Mitsubishi Lancer review along with reviews of rivals such as the Subaru Impreza to see what their running costs look like. This will help you save money on your commute.
3. Financing through the Dealer
Arranging a car loan through the dealership is convenient, but you’ll pay for this convenience in higher interest rates in many cases. Before you agree to any deal, shop around to find out what offers are available to you. The more cash you can put down on a car, the less you will need to borrow.
4. Leasing Rather than Buying
Another common financing trap to fall into for first-time buyers is signing up for a lease. Leasing a car gives you low interest rates and favourable payment plans. Yet in the end, you’re throwing your money away. You won’t own the car in the end; you’ll simply have to return it.
5. Adding Too Many Features
When you see an affordable listed price of a new vehicle, this usually refers to the most basic model. Beware of adding too many upgrades or features when you’re signing the paperwork. Satellite navigation, surround sound, or a moon roof might seem like great ideas at the time, but will they really fit within your budget? Be sure to weigh these options carefully before you choose a car with all the bells and whistles.
By taking the time to shop around both for a car and the best financing deal, you can be sure to choose a first vehicle that fits well within your budget and suits all your lifestyle needs. This will make you feel even better as you drive away in your first major asset.