Buying A Car On A Tight Budget - Important Tips

Nearly everyone these days needs a car, and many households own 3 cars or more. Even though buying a car affords you a lot of conveniences, it can be challenging to save enough money to both buy and maintain a vehicle. If you are on a budget then making the right choice is even more important.

A lot of people make the mistake of buying a very cheap car, which ends up costing them a lot of money and time in repairing the vehicle. They spend more time at the garage than they do on the road. Moreover, there are multiple ways you can go about financing a car. All these variables play a role in how cost-effective the deal is for you. Here are some important things to keep in mind.

Buying New

It’s always nice to buy a car brand new and be the first person to put the first mile on it, however, this isn’t the most cost-effective option. Not only because the car itself is more expensive, but you also have to pay for registration, insurance, shipping, and various other costs.

Buying a used vehicle means all these things have already been taken care of. Used vehicles are also lower in price due to depreciation, which means you can get a barely-used vehicle for much less than a brand-new version of the same model. If you spend some time looking for the right used vehicle, you will surely find one in excellent condition with very few miles on it. Ideally, you should be buying a vehicle that is not only low mileage but also has a consistent and thorough service history. This will make it easier to gauge the condition of the vehicle.

Trading In

Another mistake that car buyers make is that they trade in their current vehicle to buy a new one. The problem here is that you end up buying a new vehicle from the same dealer. This means you might not be getting the best vehicle because you are limited to the vehicles that a particular dealer has.

The other problem is that you sell your current vehicle for much less than it is actually worth because the dealer also wants to resell the vehicle and make more money off it. The best solution is to sell the vehicle yourself and then buy it independently.

This is particularly true if your car needs some minor repairs. Taking the time to get minor repairs done yourself can save you a lot of money in the long run. For instance, if your car needs small hail damage repaired, hiring Express Hail Repair or another reputable specialist to repair the car at a fraction of the cost that a dealership would charge is a smart move. Not only would you save money, but also it would help retain the car’s value.

Brands

Some vehicles are more expensive than others because of the brand. If you buy a Ferrari, no matter what model you pick, even the lowest-priced version will be more expensive than a Mazda.

The brand of a vehicle also influences the kind of maintenance costs you can expect to face. Discussing your needs and requirements with an expert will help you learn more about this and help you come to a better decision. Generally, vehicles that are manufactured locally and have a good service network available in the country will be cheaper to buy and maintain. Buying a vehicle that isn’t too common will be more expensive.

Financing

Even when buying a used vehicle, a lot of buyers need some financing to help them out. While there is nothing wrong with financing, getting the wrong kind of financing can make the deal considerably more expensive. Rather than financing through a dealer, look for private financing options. Understand the kind of financing that you are eligible for given your income, credit history, vehicle value, and other variables.

Once you have a good idea of what you can get in the market, talk to your dealer to find a solution that matches those market rates. If not, you can always get financing from a third-party lender.

Needs

Understand exactly what you need the vehicle for. While it is nice to buy a luxury vehicle, that is often beyond the needs of many users. Usually, something smaller will comfortably meet your requirements. This will be cheaper to buy and cheaper to maintain in the long run. If you need a specific kind of vehicle, then look at different models from different brands and see what meets your needs.

In any case, whether you are buying from a dealer or an individual car owner, there is always room to negotiate. Even when working out your financing options, try and negotiate a better deal. What you see as the market price doesn’t have to be the final amount you pay. This is why it is important to explore the market a bit before you make your decision. Sometimes you will find a much better price from a different store just down the road. When buying from a private seller, also make sure you get the vehicle professionally inspected and make sure all the paperwork is in order. Going through all these things before the purchase will save you from a lot of trouble and will ensure that the sale – and purchase – of the vehicle is legitimate.

Featured Photo by Sven D on Unsplash