Buying your first car? Here’s how to make a responsible purchase.
Before committing yourself to a purchase here’s some advice on how to make a wise financial decision.
Are you a graduate, or a newly-licensed driver? If so, like most young people, you are likely considering buying your first car. It’s a serious decision because most likely you will need to finance the purchase.
Regardless of whether the car is new or used you must compare financing options. Contracts should be read carefully. Read them side-by-side, get advice if necessary and evaluate the offers. You can then make the best financial decision. A careful assessment allows you to weigh the options, to secure the best choice on finance and terms.
Buying a car can be a weighty financial undertaking, a serious commitment. Therefore, make sure you understand the workings behind the transaction. Before deciding on who will provide the finance here are some tips to make the task easier:
- Set a budget: A car, new or used, is a significant purchase and a budget will help you achieve a realistic outcome, without overspending.
- Ask for requirements: Request those offering finance what they require to process your application. You can then quickly provide documentation.
- Second-hand is recommended: A new car is an exciting prospect but a second-hand vehicle is more affordable. You can save a lot of money by buying second-hand and may avoid a long-term financial commitment.
- Consider other costs: Before buying consider all the costs of car ownership: fuel, insurance and repairs can add up so consider the affordability of those costs. In other words, factor in those costs for your ownership.
- Have the car checked: The perfect car at a bargain price may be too good to be true. Arrange a mechanical inspection, to ensure the vehicle is in good condition.
- Negotiate a price: When you have selected a car and before you apply for finance try to negotiate the lowest price. Sometimes dealerships, or private owners, are flexible on price. Negotiate to get the best price.
- Compare car finance: Do not assume that you will always get the best rates from car financiers. If in doubt, shop around.
Contact iCredit to find out more about our personal car-loans or to compare our car-finance solutions. We can help you on your journey – to become a first-time car owner.