Common Mistakes While Choosing a Car
For most people, a car is a must. We often depend on our cars to drive us to and from work every day, drive our children, and sometimes we just drive a car for fun. Since cars are an important aspect of life for us, each of us would like to have a reliable, high-quality, comfortable, and beautiful car.
Fortunately, the possibilities for choosing and buying a modern car are almost endless. But due to the wide variety of cars presented in the car market, making the right choice, finding the right combination between desire and need at an affordable price, may not be an easy task. It is important to understand that if you buy a bad vehicle, you may need to sell it as a junk car for cash soon. In this article, we have gathered the seven most common mistakes while choosing a car.
1. Buying a car on credit
Most car purchases are on credit. On the one hand, there is nothing wrong with the fact that many of us buy a car with borrowed funds. But upon a detailed study of buying a car with a loan, it turns out that buying on credit is not as profitable as it seems at first glance. Over payment for a loan, additional insurance (insurance is paid for the entire term of the loan agreement), plus the natural depreciation of the car doesn’t make purchasing a car on credit the best decision.
Additionally, when buying on credit, dealers are ready to sell you a car on any terms, which is not always the best for you. The thing is that your monthly income may not allow you to service the loan with monthly payments. In such cases, the dealer, together with the bank, increases the loan term, which, on the one hand, reduces the monthly loan payment, but on the other hand, significantly increases the total loan overpayment. In the end, you will overpay a significant amount for the car.
If you want to sell the car after the loan is repaid, you will lose a significant amount due to the natural depreciation of the car, which is 20 percent of the original cost of the car in the first year and 10-15 percent in subsequent years. So when purchasing a car on credit, remember that the longer the term of the car loan, the greater the overpayment, despite the small monthly payment. When buying a car on credit, try to arrange a loan for a minimum period, which will save you several thousand dollars.
2. Buying a new car
Many of us would like to purchase or have already bought a new car. But has anyone thought about how much buying a new car is more profitable than a used one? Any car is not an investment that will increase or save your investment. Vehicles are depreciating at a very rapid rate. Even faster than many think.
So a new car in the first year loses from 20 to 30 percent of its value, regardless of the mileage and general condition of the car. In the second year and subsequent years, cars lose another 10-20 percent of their value. The best solution is to buy a used one-year-old or 2-year-old car with low mileage. In this case, the peak of the fall in the market price for the car has already passed. The first owner of a new car has already lost 20 to 40 percent of the price of the car.
When buying a two-year car, you can save a lot of money compared to a new car. So, when purchasing a car from 1 to 2 years old, you will not only buy a car cheaper than when buying a new one but also buy cars with a factory warranty that has not yet expired, which additionally makes buying a used car much more profitable than buying a new car.
3. Choosing the wrong car to buy
Are you buying a car in which only you will drive and you need the car for everyday rides to work and home? Then there is no need to buy an expensive eight-seat SUV capable of towing 5 tons of cargo. Each of us needs a car, depending on the lifestyle and what needs we need in the process of using the car. Of course, there are many expensive cars that make many people turn around on the road, but in order to really save money, you need to buy a car that meets your needs, not ambitions.
4. Don’t forget about other costs
The actual and real value of a car is very important to any car owner, but very often most of us overlook the cost of owning a car when buying It. They are associated with long-term maintenance, annual insurance, and other costs which are related to the operation of the vehicle. Therefore, when buying an expensive car, take into account your increasing car costs in the future in order to measure your financial capabilities in advance with the ability to own an expensive car.
You should also take into account all the costs associated with car maintenance. Any vehicle needs periodic replacement of oil, pads, various filters, tires, etc. If your car belongs to luxury class cars, you need to know that maintenance of such cars is much more expensive, due to the more expensive cost of spare parts and the cost of work at a car service. To determine the possibility, without prejudice to your budget, of owning a particular car, it is necessary to take into account the main costs during the operation of the car – fuel.
5. Follow ambitions instead of needs
When choosing a car, many car drivers don’t fully understand why they need a car. Such a mistake can bring big problems. There is nothing worse than paying a tidy sum for something that is not necessary. If the family has a large dog, it is worth considering that the new car has a place for its safe and comfortable placement.
If the car is not planned to be used outside the city, you can take a closer look at small economical models that are easy to park. The fact that an expensive elegant car attracts attention is pleasant. But you should clearly distinguish whether a car is needed to create an image or whether it is purchased for the business.
6. Paying for extra options
Another common way to waste money is to purchase a car with options that you don’t need. These useless options include an ashtray (for non-smoking drivers), double anti-corrosion coating (now cars are treated with anti-corrosion coating), reinforced radio antenna (in case the radio is not supposed to be used in the car), etc. At the same time, you shouldn’t save on additional options that help maintain the safety of the car, such as additional airbags, head restraints, and a child protection system in the event of an accident if you have children.
7. Choosing a completely new car model
Even if you want to buy a prestigious new car, you shouldn’t buy a completely new model. The first three years after the release of the model, the companies are engaged in carefully accumulating all the reviews about the model, fixing all the problems, shortcomings, and defects in order to eliminate them. If the car owner doesn’t seek to participate in “live testing”, you should not buy a car in the first three years after the release of the model. It is better to take an already proven model.
