5 Tips for First Time Car Buyers
Buying a car requires a significant investment – it’s the second most expensive purchase you’ll make next to buying a house. And for first-time car buyers, nothing feels more anxious and exciting than searching for the perfect vehicle.
But hold your horses. There are a handful of things to keep in mind when buying a car for the first time. Here are five tips to consider before forking over your hard-earned money.
Top 5 Tips for First Time Car Buyers
Tip 1: Determine your budget.
Tip 2: Consider a used or repossessed vehicle.
Tip 3: Choose your vehicle wisely.
Tip 4: Cash or financing? Know your payment options.
Tip 5: Consider buying a car online.
Tip #1: Determine your budget and stick to it.
First-time car buyers tend to bite more than they can chew. When buying a car, always set a realistic budget before searching for a vehicle. Consider your monthly expenses and cost of living to determine how much you can actually spend on car payments.
Maybe you want a big, bold, and shiny SUV, but do you really need a bigger car? The better question is: Can you afford it? Before thinking about buying a car, sort out your budget and stick to the plan. You’ll thank yourself in the end.
Tip #2: Consider a used or repossessed vehicle.
Consider buying a used or repossessed vehicle over a brand new car if you’re working with a smaller budget. Most repossessed vehicles have low mileages, intact warranties, and fresh interiors like a brand new car, but you’re only paying 30-percent to 50-percent off the MSRP.
Why? You can thank depreciation for that. Depreciation is the loss of value of an asset due to wear, tear, market demand, or a combination of all factors. Brand new cars will typically lose 10 to 20-percent of their value within the first year of ownership, and depreciation instantly kicks in the very moment you drive the vehicle off the casa.
And if you buy a used or repossessed car, you can find a better vehicle for the money. Automart has a massive inventory of used and repossessed cars, pickup trucks, hatchbacks, SUVs, and crossovers at discounted prices. Why spend more on your first car when you can have the exact vehicle for less?
Tip #3: Choose your vehicle wisely.
Buying a car is an emotional purchase, but the mind should rule over the heart. Think about your lifestyle and basic needs before considering what you want in a vehicle.
Do you need a primary daily driver to get from point A to point B, or do you need more space or seats to accommodate your growing family? It’s impractical to buy a two-seat Mazda Miata MX-5 if what you urgently need is a four-door sedan with enough room for the wife and two kids.
Do you really need higher ground clearance, all-wheel-drive, and the off-road merits of a mountain goat in your daily travels? Probably not. When buying a car for the first time, choose your vehicle wisely.
Tip #4: Cash or financing? Know your payment options.
You can buy in cash, but financing gives you more leverage when making an expensive purchase. However, take the time to figure out your financing options. Low monthly deals, zero down-payment offers, and longer financing terms may sound sweet at first, but you may end up paying more in the long run.
When financing a vehicle, it’s better to make a higher down payment to reduce your monthly payments. And remember that low monthly and zero-down offers will usually come with higher interest rates.
Automart offers installment options of 30-percent down payment and up to four years to pay for low-mileage, repossessed vehicles. Of course, the exact financing terms will depend on your bank and the type of vehicle.
Tip #5: Consider buying a car online.
You can easily compare prices, features, and financing offers on your favorite vehicle if you shop online, especially now as the entire country (and the rest of the world) is battling the ravages of COVID-19. But despite this lingering pandemic, the desire to have a car has never been higher as people consider their vehicles a peaceful sanctuary from the outside world.
Automart is an online marketplace with thousands of used and repossessed vehicles in over fifteen used car lots all over Metro Manila, Cebu, Davao, and the rest of the archipelago. With Automart, you’re only a few clicks away from your first dream car!