consider when buying a car
Financial Planning

What to Consider When Buying a Car

Looking to purchase a car? Here is a list of things to consider when buying a car!

Coming to the decision to buy a new car is not something that should be done lightly. There are many things that should be considered when thinking about buying a new car, and only once each point has been given due thought should a decision be made. This article aims to help guide you in making such a decision by outlining the important points to ponder when you are trying to decide whether or not you want to buy a new car. So here is a list of what to consider when buying a car!

Why Do You Need a New Car?

The first question you should be asking yourself when purchasing a new car is why exactly you need a new car. 

What purpose would the new car serve? 

Is your current car insufficient? 

What do you gain by purchasing a car? 

Only once you know exactly why you need a new car does it make sense for you to continue with the buying process.

Are There Feasible Alternatives?

The next thing you should be asking yourself is whether or not it would be feasible for you to use some other method of transport to get where you need to go. Owning a car can be expensive, so entertaining the possibility of alternatives is definitely something you should be doing.

The Bus

If there is a bus stop nearby and you only really need to travel short distances, taking the bus is ideal. Taking the bus is a low-cost, low environmental impact method of avoiding driving. It will be just as effective as driving yourself for traveling short distances.

The Train

Similarly, if you are traveling to a major city and there is a train station nearby, you have a pretty good chance of taking the train instead. This allows you to open up your commute time to engage with other pursuits and reduce your overall cost over time.

The Tram

If your area has trams, they are likely just as useful as a train or a bus for traveling around your city specifically.

Cycling or Walking

Finally, if you don’t have a far commute, cycling or even walking could be an ideal alternative to buying and paying for a car. Walking or cycling costs you nothing and will even keep you in good health by keeping you active.

If none of these options are as effective as your car, or if you have another reason for needing a car specifically, then feel free to continue with the process, but be sure to give the alternatives ample consideration.

What Are You Going to Do with Your Old Car?

If you happen to already own a car, it is important that you know exactly what you will do with your existing vehicle when you purchase your new one. There are a few options available to you:

First, you could keep your old car for a spouse or roommate to use and make use of your new car for your own purposes.

Second, you could sell the old car either to someone else online, a dealership or even to a scrapyard, depending on the quality of the car.

Third, you could find the best place to donate car to charity and make a charitable donation out of your older car.

Whichever of these options you decide to take, remember to take time and care with your decision.

What Costs Are You Going to Have with This Car?

The cost of a new car is an important thing to consider. Your ability to afford your new purchase is a key factor in whether or not you should be buying a new car and what kind of car you buy if you do. Some of the key costs you should be considering include:

Fuel

This is often overlooked when considering the cost of your car. Fuel is easily one of the most consistent and important costs that are associated with your vehicle.

Without fuel, your car won’t be taking you anywhere, and the fuel efficiency of your vehicle is very important. A good option to avoid this cost is to purchase an electric car. However, the availability of charging facilities is an equally important consideration in that case.

Parking

Another item on the list of what to consider when buying a car is parking. Paying for proper parking is one of the most unexpected costs when it comes to your car but is undeniably impactful. Unless you are fortunate enough to have private parking at your office, you are likely going to have to pay to park your vehicle regularly. Special passes can reduce the cost of parking for work, however it is still a regular and expensive aspect of car ownership.

Insurance

You must insure your vehicle to legally drive it in most states. This means you need to pay either one large sum annually or a smaller sum monthly to insure your car against any accidents that you might encounter while driving.

This helps to keep you safe from any sudden financial burden associated with an accident but can also severely increase the passive cost of driving. Plus, if you ever need to make a claim on your vehicle, the cost of your insurance will increase.

Financing

Finally, the method by which you buy your new car will significantly impact the cost that you will incur. If you decide to finance your new car, you will find yourself paying more than you would originally, but over a long period, making it more easily available than a lump sum payment.

This adds another consistent cost to your monthly revenue and can make purchasing a vehicle both more and less financially plausible.

What to Consider When Buying a Car – Summary

You must be absolutely certain to consider each of these points carefully before you commit yourself to purchasing a new car. Committing yourself to pay for a car you cannot afford can be a major financial burden. This decision can affect your credit history as well, which can seriously affect your financial future and cause issues down the line. 

For more articles like this, be sure to visit the financial planning section of the site!

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