With all the options on the car market, choosing the right car might seem like a tricky task. But don’t despair! It’s not as hard as you think. Please read our tips to get a better idea of what to look out for.
Since a car is going to be your second biggest investment in life, it should make your life easier. So, write up a list of everything that you use your current car to do. Next, write up a list of everything that your wish you could do with your current car. This will help you to decide which features are most important to you.
Think outside the box!
The idea behind any investment is to maximize your return, while reducing your overall cost. So, if you need room for 7, but you don’t tow anything, and you never go off road, why not consider a minivan, or a crossover? They get better gas mileage than a traditional SUV, and they’re cheaper to insure too.
There are a lot of concessions that you can make on vehicle type. But, you should take the time to consider what you really need in a vehicle. That way, you can make the most financially responsible decision for you & your family.
It doesn’t matter if you drive a Prius, or Bentley, fuel is still expensive. So, before you go out and buy a new car, make sure that it will fit into your budget. To figure this out, calculate how many miles that you drive each week. Then, figure out how much your current car costs in fuel.
Now, calculate how much the car that you want will cost you to run (based on the EPA rating), then ask yourself if you can realistically afford it. Remember, you should only spend 20-30% of your net income on your car. So making a fuel efficient decision could benefit you in the long run. For example, if you spend a lot of time on the highway, a diesel powered vehicle would probably make the most sense. However, if you spend most of your time in stop-and-go traffic, a hybrid, or an EV might make the most sense for you. If you just use your vehicle to get from one place to another, try to get the most sensible engine in that car’s model range. Don’t forget, a penny saved in a penny earned.
For many people, owning a Honda Accord, Toyota Highlander or any other popular model offers a bit of prestige. However, you really should consider just how much money one of those popular models is going to windup costing you in the long-run.
To figure this out, look at the following:
- The car’s initial price
- The cost of routine maintenance
- The cost of repairs
- The cost of insurance
- The interest on your car loan
- The expected depreciation
Once you’ve figured out how much the car that you want is going to cost, compare it to the cost of a cheaper alternative, like a Kia, or a Chevy. If you can get around that whole snob appeal thing, you just might be able to save yourself several thousand dollars.
Also checkout: 10 steps to buying a new car