Has your budget over the festive season and into the New Year been tested sorely? You need to buy a new car, but what a pleasure if you can get a great vehicle that ticks all the boxes and at a reduced price.1
Gather information1
An informed decision about anything in life is by far better than trying something blindly. For example, you may initially have fancy ideas about obtaining a model as the ideal car. But after some homework and physically inspecting various brands, the car you need begins to crystalise out.
Your budget counts the most in the end1
No matter how good a specific new car may feel, there is no point driving it around for several years if you cannot put food on the table. So, you need first to determine what you can afford.
Think about the following 5 tips before taking the plunge with your new purchase.
Study your budget carefully1
This you should do before you even go out for any test drives. You need to be comfortable with the monthly car payments to the bank and the comprehensive car insurance premiums if it is a new car. Then you will know which cars you can target in a specific price bracket. Don’t forget other hidden costs such as the licence fees once a year. You may be able to lower the monthly car payments by negotiating for a great trade-in price for your old car.
Use an online finance calculator1
This calculator considers all financial aspects of motoring, such as fuel costs and servicing costs if there is no initial service plan.
Which car do you need? 1
Once you have addressed your budget, you need to decide what kind of car you need. Your needs as a single person starting out in life are entirely different to those of a family of four. First, identify those items that are non-negotiable, such as the size of the car, safety aspects, and fuel costs. After that, make a list of not so critical things, such as the car’s colour or how many USB ports are available. You may not be fussy about the material used for the car seating. When looking for a car, use this list of non-negotiables and negotiables as a reference point.
Your final research1
Armed with your list, you should focus on a specific brand and model that fits all your needs. Then, go online and start searching for that particular car. Don’t restrict your search to only new vehicles, but also test the demo and pre-owned car route. It doesn’t cost anything to find out, and at least you are satisfied in the end that you have done all you can.
Disclaimer
Please note, this article can only be a source of information. Please consult a registered financial service provider for more information before buying any car insurance product.
Eventually, all your homework has paid off, and you have bought your new dream car. However, don’t forget about the legal requirement of buying comprehensive car insurance if your new vehicle is to be financed by a financial institution. Prime South Africa offers affordable, comprehensive car insurance with fixed premiums* and a reduce to zero excess* and world-class service. T and Cs apply.
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