Excited to purchase your first car? Here are some tips on what to look out for when purchasing your first car.
1) Find a car that fits your need & budget
You have to assess your need and why you're purchasing your car. If ever your purchase is for city driving then it is smart to look at compact cars such as Kia Picanto, Toyota Wigo, Honda Jazz and the like which are cost efficient and easy to park. Also take into consideration the number of passengers that you would be driving. Is it just you and your significant other or will it be a family car, in which it would be best to get a bigger car like a sedan or an SUV.
By establishing your need and use, you can now look at your budget which leads to the second tip.
2) Shop around for auto loans
Auto loans nowadays are very competitive. With the good economic standing of the Philippines, car loan rates are at an ultimate low. Some banks offer better rates than others thus it is always good practice to look around and canvass for the best deals. It is not always beneficial to take the first offer that you get especially the offers from the dealership.
3) Get the shortest loan term you can afford and make early or extra payments when you can
Upon taking that car loan, shorter is always better. Usually the longer the loan the cheaper your monthly amortization will be however if you calculate your monthly expense, you will find out that you will actually be paying more for your car in interest compared to acquiring a shorter term loan.
So when able, it would be best to take the shortest loan term and when blessed with extra, allocate some of those funds to paying your car loan.
4) Find the best car insurance rates
Insurance is another cost that you have to take into consideration when acquiring your first car. As we say, it is always better to be safe than sorry. Accidents are a part in everyday motoring life and we can drive confidently knowing that we are covered in case anything goes wrong during our drive.
Just like banks, there are numerous insurance companies out there competing to get your business. Shop around and don't get embarrassed to ask around for quotes as well as getting to know the details of the coverage. This will save you time and hassle whenever the need arises that you would claim from your insurance.
5) Test Drive
Seeing is believing! The most important part when deciding on purchasing your first car or any car for that matter is getting the feel for the unit that you are thinking of acquiring. Upon your test drive, you can actually get to know and familiarize yourself with what you are about to buy. If you are not convinced with the performance or any other reason, don't force it. There are other cars out there.
Personal Tip: Based on experience, I highly suggest that you also look at the availability of parts for the vehicle that you are thinking of buying. As a repair shop, we've experienced certain car brands and models stay in the shop for weeks at a time waiting for their spare parts to arrive.
Not to mention the cost. Original parts will always cost more compared to third party or surplus parts. So it's also something to consider. My advice, take a look at the car brand/models on the streets, if it's common, then rest assured there are spare parts highly available in the market.
Over-all, the final say is up to you. If you missed it and want to know the long-term costs of your car. Check the infographic from the previous posts here.
Enjoy your brand new car!
Photo courtesy: Shutterstock
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