It is an exciting time the day you decide to buy your first car. For many it represents independence and the ability to make a living. However, a car will also be one of the costliest things you will ever buy because they depreciate like crazy. Generally, first cars are purchased when you are young and have limited income so it is important to save as much as possible when buy your first car.
Buy second hand
Do some research to find out what second hand cars are considered reliable and good quality. If you know nothing about cars, make friends with someone who does. Common models are also good as there will be plenty of second hand parts available should you ever need any. Make sure your car will be safe, reliable and economical but don’t spend your money on a shiny new car. If you buy a second hand car now and invest the rest of your money, one day you may be able to help pay for a new car from the income earned on this investment.
On going cost
There is no point getting a super cheap car that needs constant maintenance or use petrol like a fighter jet. Think about both the up front and on going cost of each car you are considering. A more moderately priced car may be a better option over a five-year period, than the cheapest car which may not even last five years. In this case car loan repayment calculator will help.
Dealer or not
Dealers make a wage by selling cars which means they have to sell the car for more than it is worth to make money. This doesn’t mean you should buy from a dealer but just be aware that you are paying for more than just a car when you do. Conversely, dealers have more to lose by selling a dodgy car than a private seller. If you buy privately make sure you get the car checked by a mechanic that you trust. Knowing that there are no major problems or services coming up will save you heaps in the long run.
Negotiate and be prepared to walk away from someone who isn’t willing to match your maximum price. Set a limit on how much you are willing to spend and then negotiate the price toward this amount. Make sure you demonstrate that you are a serious buyer and able to purchase quickly to entice the seller. If buying from a dealer be prepared to negotiate hard; they do it for a living! Set your price and be prepared to walk away.
By using these tips when buying your first car you can save heaps which will be much better invested or used on day trips in your first car.
There is no point getting a super cheap car that needs constant maintenance or use petrol like a fighter jet.