car-loan

Photo

Buying a new motor is an amazing experience, even if strictly speaking it isn’t new. The feeling you get when you finally get to sit behind the wheel is intoxicating. And, the smile on your face feels like it will never fade. But, that only happens when you don’t make mistakes. When you make errors, the gut-wrenching feeling in the pit of your stomach feels like it will haunt you for life. Because mistakes can be very costly, it’s best to avoid them like the plague. If you don’t know how, here are a few pointers.

Don’t Go Over Budget

The excitement of buying a new car can tempt you into making unrealistic decisions. For example, you suddenly think you can afford a Porsche if only you didn’t have any kids and a mortgage. Well, sorry to break it to you, but you have children and bills to pay. Therefore, you can’t splash the car on a car that is desirable but too much in terms of what you need. A budget is in place to ensure that you follow the rules. Sure, some rules can be bent, but not to the extent that they break. Otherwise, your bank balance will snap under pressure too.

Find A Reasonable Loan

Securing a loan might seem like you’re committing the cardinal sin of going over budget. However, that isn’t always the case. For one thing, you might be able to pay for a car over the course of a few years instead of upfront. If that’s the case, a finance deal is often the best option. Or, you might not have good credit and can’t find a loan in the first place. Either way, you need to choose wisely because your next move could be disastrous. Regarding your bad credit, it’s essential to research how to get a car loan with bad credit for the best results. With a conventional loan, shop around for deals and use comparison websites.

Don’t Always Go New Over Old

Obviously, a brand spanking new car has more appeal than a second-hand one. Apart from the aesthetics, new cars come with better benefits like a year long warranty. Should anything happen within the year, you don’t have to worry because it’s the seller’s prerogative. Still, old cars have their pros too. To begin with, they are cheaper. Plus, they are just as reliable. If you find one that will last, there’s no need for a warranty. Then, you can save a fortune and cut your costs down by a third. You don’t always have to opt for an old motor, but you should at least consider the thought.

Test Drive

You’ve signed on the dotted line, and you’re driving home with your new purchase. But, after a while, you realize something is terribly wrong. So, you take it back to the dealer and say ‘what’s going on?!’ They reply they don’t know, and the whole debacle continues until you realize you’ve been shafted. It happens all the time, yet it doesn’t have to. A simple test drive will tell you whether the vehicle is in good condition or not.

Anyone that refuses a test drive has something to hide.