Buying a car doesn’t necessarily need to empty your pockets. It only takes a couple of Google searches to get tons of great car deals at the cheap price. But if, even the cheapest car is beyond your budget, it’s wise to consider applying for a car loan to help finance your purchase so you don’t have to pay a one-time lump sum. And lucky enough you came to the right place, below are tips on how to buy your car cheap while still getting the best deal.
Stick to your budget
There are lots of car models to choose from these days. And it’s easy to fall into the trap of going over your budget just to grab the latest sporty vehicle from your favorite manufacturer. But you should bear in mind that your choice of car might affect your family’s cash flow for a couple of years. You need to include it on your monthly expenses along with your other recurring bills.
Know what you want
Be specific with the type of car you want. Are you looking for a luxury car? Or do you prefer to own a family car? Do you like a multi-purpose vehicle you can use on a daily basis as well as for transporting goods for your business? Remember, there’s a price difference between a family sedan, a wagon, an SUV and a pick up. So you better decide which of these is the most useful and fuel-efficient.
Consider important car details
Your choice of car shouldn’t just be based on looks and price. The following are also good considerations to bear in mind:
- Mileage and Fuel Consumption – Avoid choosing a gas guzzler because this will only add up daily expense.
- Prior Ownership – If you opted to buy a second-hand car, do care to check if it isn’t stolen. Ask the dealer about the previous owner’s concern about the car, especially about those under the hood.
- Possible Maintenance Issues – Maintenance cost is a yoke you should learn to shoulder as a car owner. But there are ways to reduce to reduce this expense. You can opt to buy a car that’s easy to tinker so that you can fix minor issues on your own. It also helps to choose a vehicle with spare parts that are easy to get by.
- Warranty – Buy a vehicle that comes with a warranty of merchantability agreement on the fine print. This will allow you to hold the dealer accountable for any defects or issues within a specific period of time.
Pay in installments
Unless you plan to purchase a car with a spot cash, it’s wise to find a reliable car loan provider to help you cover the cost of the purchase. Below are things you need to ask to your car dealer and your loan provider:
- Insurance – Car insurance is good to have because it’s a way to protect yourself while on the road.
- Rate – Interest rate differs based on the tenor of your car loan and your car’s purchase price. You’d pay more for the monthly amortization if you opt for a shorter loan term. However, if you want to lower your monthly payments, you should extend the loan duration. But remember, you would be paying more for the interest rate if you plan to have the loan for a longer period.
- Extended Service Contract – This refers to the additional repair and maintenance service the dealer offers to car shoppers as a way to help the newbie owner maintain the car. However, many consider this option expensive and no loan provider is willing to cover this type of cost. Many just shopped around for third-party providers, who’re offering the same deal at a lower cost.