4 Tips in Buying a New Car

iStock photo

It has been 4 years since we acquired our family vehicle. It took us a long time to think if we really need to get our own car since my husband has a company service car that we can use. There are so many things to consider as well before we ended up with the final decision.

 

Let me share some tips in buying a new car, which could help you decide if you are planning to buy one.

 

Pick the vehicle model you want

First of all, you need to decide on what vehicle model or type you want. You might want to consider how big your family is, its fuel usage and your purpose of buying. 

In our case, even if we were just three in our family then, we opted to purchase a van since we already have a small car like what I have mentioned. Also, we consider our frequent trips to our hometown, which is 4-5 hours away from our current home. Since we have kids in tow, we have many stuff to bring and fill the van. It also helps now that we have a current pandemic and the authority requires proper physical distance when riding a vehicle.

 

Choose the mode of payment

If you have cash to buy, it is a better payment option because you don't need to pay for an interest. But if you can just afford for a down payment and you think you have a stable job or source of income then you can choose an auto loan as a payment option.

There are lots of offering when you wanted to have an auto loan. Most auto loans are financed by different banking institutions. However, if you have a bank account already, you can directly inquire from them. Filing an auto loan directly from your bank will give various options on down payment, from 20 to 50 percent.

 

Based on our experience, having an auto loan directly from the bank is much better You will have lower monthly amortization because of lower interest.

You can use several applications or site to calculate your monthly amortization to give you an idea of what car price can fit a monthly payment you can afford.

 

Complete the required documents

If you chose bank auto loan payment like we did, the bank will require you to submit documents like government issued IDs, certificate of employment stating your salary if you are employed, income tax return and other documents that may show your proof of income.

 

Seek for a nearest car dealer with service maintenance

When buying a car, you must also think of its after sales service or maintenance. It is better to get a car from a dealer close to your area. This will save your time during preventive maintenance schedules. Especially in the event that you leave your car in their casa, travelling is not a hassle.

Three years post pandemic car cost continue to increase.  It is very convenient to have your own car. That's very true like during the early days of the pandemic the public transportations were stopped and even now most people chose not to ride mass transportation to avoid crowds.

But remember having a car is a liability rather than investment. If you are not financially prepare to acquire one, then wait until you are ready. Because aside from car cost or the monthly amortization for auto loans, you will need to spend on its maintenance and repair as well.

So those are some tips and reminders in buying a new car. Hope that helps.