Buying a car is an exciting endeavour. However, it’s easy to get swept up in the excitement and forget the budget. It’s important the budget is set before beginning the search. Many experts suggest a car loan should be for no more than three years and comprise no more than 20% of the monthly budget. When creating the budget for a new car, it should also include the insurance, maintenance, repairs and fuel costs. It is best to plan buying your car well in advance. This allows time to improve credit and save for a down payment.
Once the budget is set, start the search online and be open-minded. Take a look at both new and used cars. By widening the search, there are more options available. For example, you may be able to afford a two year old luxury car rather than a brand new economy car. However, there are several other factors to think about as well including lifestyle, safety, appearance, and comfort.
A new car will cost more initially, but the upkeep for a used car will likely be even more during its lifetime. There are benefits and drawback to both new and used cars.
The major benefits of buying new include being the first owner, not worrying about immediate maintenance, and it will be safe and comfortable. Used cars have their own benefits including lower Insurance costs, the ability to afford a larger or more luxurious car, and the depreciation is less than that of a new car.
Drawbacks for new cars are the immediate depreciation, upfront cost, and higher insurance. For a used car, one needs to worry think about the history of the car (repairs, etc.), less conveniences in comparison to a new car, and a shorter warranty period.
In the end, it is a matter of personal taste. As long as the car for sale is within the budget, it is best to select the car that is best for your lifestyle. Whether your favourite car is new or used, choose a car you will enjoy driving for several years.