10 Things To Look Out For When Buying A New Car
A complete checklist to help you through your journey of buying a new car.
By sponsored — 07 Feb 2014, 03:03 PM — Updated almost 10 years ago
1. Before you walk into a showroom, determine what you need and want from your new car
What are your expectations from a car? How are you going to use it? It is not good enough to say you want a car that looks sporty, reliable, drives well and has good resale value. Out of the four attributes mentioned, you need to decide which is the most important, which is the next most important and so on.
Before you walk into a showroom, determine what you need and want from your new car.
Image via motorstop.asia2. Determine your car budget by calculating the cost of your car ownership
Thinking of purchasing a brand new car? Take the following into account when you’re calculating your car budget :
-Loan Financing
-Road Tax
-Motor Insurance
-Fuel Economy (Petrol Cost)
-Servicing Cost
-Resale Value & Depreciation Cost
When shopping for a new car, make sure you determine how much you can spend on it. AAA's financial services experts advise allocating no more than 15 to 20 percent of your total monthly budget to car-related expenses.
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3. There are several different financing methods such as loaning and leasing. Pick one that matches your affordability.
Leasing, or stretching out financing payments to seven or eight years because you’re tight for the down payment and even tighter when it comes to the monthly payment: Really think these issues right through to the end of eight years. That is, if you lease, it makes the most sense if you’re swapping out for a new ride every three or four years. If you’re financing over eight, be sure you’re going to love that ride six years from now. Think these things through.
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Before jumping into the driver's seat for a test-drive, decide on the type of financing you'd like to use (loan, lease or cash). If you'll be going for a loan or lease, arrange for financing ahead of time. Compare rates offered by your own bank or credit union as well as other local banks to secure the most favorable terms.
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Will you take out a loan or opt for a lease? Five years? Seven years? Arrange your financing method according to your affordability.
Image via truecar.com4. Compare loans offered by both the car dealership and the bank as they often offer different interest rates
If taking up a car loan directly from a bank (minus the dealer’s association) gives you a lower rate, then apply for a car loan separately.
However, the best move before saying ‘I do’ to any of the suggested panel banks is to do your own research and call them up to ensure that you are eligible for the advertised interest rate.
First things first, each car manufacturers have their own authorised car dealers and usually have their own bank panels to make it easier for car buyers. If you’re satisfied with the interest rate given, then go for it.
5. Check the car's resale value if you are planning to sell your car in the near future
Car experts always say that we should go for a car with a higher resale value, or we will ‘regret for life’. The resale value of a car is the value that the car retains after you have used the car. For example, you buy a car today at RM100,000, and after 5 years you decide to sell your car to get a new one. Your car will have a different value in the market 5 years from now.
Are you planning to sell your car in the near future? You might want to check the car's resale value.
Image via dealer.com6. Your new car should come with a good warranty
It may seem like only yesterday but the five-year factory-backed warranty has been around since 1999, when South Korean brand Hyundai introduced it to quell quality concerns. But it's now seen as a must-have. Three years and 100,000 kilometres is still the industry norm even though most brands in Europe and the US offer longer coverage
A good car warranty can provide valuable peace of mind and financial assistance in the event of mechanical or electrical faults or failure.
gocompare.comGood warranties will cover any and all maintenance costs on your new car for years after your first serious repair job. Bad warranties will probably run out about a year before you start experience car trouble. Consequently, the quality of a vehicle's factory warranty should factor heavily into your decision to buy.
7. Take more than one test drive
A test-drive is the best way to find out how a new car looks, feels and drives. Selter suggests taking the first test-drive by yourself and bringing the whole family (and all their car seats) on a follow-up test-drive. This will give you an opportunity to make sure everything (and everyone) fits comfortably.
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9. Some say a car salesman's goal is to make you buy a car the day you visit the dealer. Do your research and keep your impulse buys at bay.
Of course it’s exciting to buy a new car. Enjoy it. Revel it it -- after you’ve done the deal. Treat car buying like I treat emails that really aggravate me. I write my reply, then sit on it for 24 hours. Do the same with a new-car offer. Take it away and sit on it for 24 hours before you pull the trigger. You’ll thank yourself.
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Take your time when shopping for a new car. "Remember, the salesperson is on commission," says Selter, "and their job is to sell you a car the day you visit." She recommends visiting more than once and thoroughly researching the vehicle prior to committing to the purchase.
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A car salesman's only goal is to make you buy a car the day you visit the dealer. Do your research and keep your impulse buys at bay.
Image via blogspot.com10. Choose a dealer that provides good after-sales service network
Make sure you're comfortable with the dealership where you intend to purchase your vehicle. "You want to be sure it's the car you want and that you are buying if from the salesperson and dealer that will take care of you even after you write the check," says Selter.
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You will be grateful for a dealer that provides good after sales service.
Image via autoworld.com.my
