Buying a car is an exciting experience. There are many reasons why people choose to buy a car such as inaccessibly of public transportation, growing families and simply getting from point A to point B. After you decide what kind of car to buy comes the age old dilemma of buying it new or buying it used, as there are benefits and drawbacks to both. With a new car you can get an excellent warranty, and you are driving a vehicle with a known history, besides let’s face it fewer things are likely to go wrong in a new car.
However a used car can be a much more economical option, as new cars tend to lose as much as 20% of their value within the first year.
Whatever, kind of car you buy, you have to make sure that you can afford, check out resources such as car loan finance calculator, to find out if this vehicle is in your budget. While it is preferable to pay the full value of the car upfront, it is not a realistic expectation for most people, making financing an important thing to consider. Furthermore, please remember that there is more to the initial price of a car than what you see on the sticker or on the internet ad. In many places cars, even when sold privately are subject to taxes. Some jurisdictions may ‘hide’ the tax within the sticker price, but trust me, it is still there and yes you still pay for it.
Often before a car is placed on the road (especially when it is used) it should undergo a safety test to ensure that it is safe enough to be on the roads. While some sellers may perform this test out of their own pocket to entice the buyer, it is still in fact the buyers’ responsibility. Of course, it goes without saying that if the safety check finds any problems with your vehicle, you will have to fix them before you can put your car one the road, and remember car repair does not come cheap.
Registering your car also adds to the overall cost of the vehicle. You will have to pay for insurance, as well as plates for the car. If you would like personalized plates, the cost of them is also more than the standard plates. Also, depending where you live, some places require you to may a yearly renewal of your plates. This is a fee that has to be paid up front, adding to the overall vehicle costs. Please consider all these things when buying your new or ‘new to you’ car and you will not be unpleasantly surprised with the final bill that you will receive.