It may come as a surprise, but kiwi automobile dealers are always rooting for your success. That is true despite presenting you with a range of mouth-watering cars that leave your head spinning. In a manner of speaking, you cannot blame them for tempting you with all the lovely cars in their showrooms.
Car manufacturers outdo themselves to create a range of luxury car that rides like a dream. Naturally, such rides often carry prohibitive price tags. That is not to say that you cannot walk down to your local dealership and drive away with one. You just need a concrete car buying plan when doing so.
Do not go in over your head
One thing you need to know is that buying a car is a financial decision – everything else is secondary. As a rule of thumb, you should not buy more car than you can afford. If you can’t follow the 20/4/10 rule when paying for it, then you can’t afford the car.
The rule states that you should put at least 20% down and finance the car for less than four years. The total monthly car expenses – insurance, principle, and insurance – should not exceed 10% of your total gross income. If your dream car does not fall within these figures, you are better off taking a hard pass.
See, cars are depreciating assets, losing a percentage of their value with each passing year. Taking out a long-term loan, in the range of 60 to 84 months puts you at a disadvantage. You end up paying a small fortune in interest, almost enough to buy another car.
Double down on research
You only need to walk into a dealership to realise that all cars are not created equal. They come in all shapes and sizes, boasting a whole different array of features, engine sizes, passenger, and load carrying capacity. The vast difference in vehicular capabilities lets them meet different needs and purposes.
The key to car buying success lies in having clear insights into your vehicle needs and matching them to suitable makes and models. For instance, if you do a lot of hauling for work, you would do well to get a truck. On the other hand, if you are a suburban mum with kids, you can’t go wrong with a minivan.
Going deep in research not only lets you match the cars to your needs but also saves you money. It allows you to compare different models to ensure that you get the best value for money. It also enables you to hold your own against the slick sales reps down at the local dealership.
With so many options to choose from, buying a can quickly take a turn for the worse and lead you to make a costly mistake. Luckily, you do not have to gamble with your hard-earned money or work yourself into a bad deal. Not when you take the time to approach the car buying process objectively.
Setting a car buying budget ensures that you do not burn a hole through your finances. Reconciling your car needs ensures that you get one that will serve you for a long time.