Buying a new car is an investment you make for the next at least 6 to 8 years, especially if it is a brand new car. It is a process, and due diligence is the best way to get the maximum out of your investment. Careful considerations before you actually make the purchase ensure you are investing in something you truly believe in. If the scales are tipped on either side, your car will end up getting underutilized, or your investment may not be enough to serve your purpose. Here are a few things that you need to remember while buying a brand new car.
Things to remember while buying a new car
- Purpose and extent of the utility of the car – The size and type of your car should be decided based on what is your requirement. To help you with this dilemma, prepare a checklist of questions that will help you decide. For example, if you have a pet or a big family, an SUV might suit your needs more than a sedan or a hatchback. If you like going on road trips with your family, then enjoy the spoils of an SUV. If you are a couple who is just starting out, then a hatchback is a good choice for you. In either scenario, getting car insurance is extremely important. The price and usage of your car will decide the premium along with a few other factors. If you are looking to get an estimate for the premium, you can take a look at the car insurance calculator. You can enter the basic details asked, and get an estimate of the premium, the installments you will have to pay, and even the interest rate.
- Diesel, Petrol, CNG, or Electric car – Decide the kind of car you wish to buy. There has been a long debate amongst experts and car enthusiasts regarding the health of car engines. Ultimately, the decision rests solely upon your usage. If you are a frequent user, then buying a diesel-powered engine is recommended. The cost of a diesel engine is more, but it is better for those who love to drive. The use of electric cars is on the rise, and to incentivize people further, the government offers tax exemption on loans of electric vehicles.
- Resale value – There are a few things about cars that are sure to happen. The value of a car depreciates steadily. New cars are introduced to the market every few months, and the older technology eventually becomes obsolete. Most people hold on to a car for a maximum of 10 years and then move on to a newer model. At such times, selling your car to help you out with the new one makes sense. It is tough to pinpoint the exact resale value of cars, but the company, model, current sale numbers, and user feedback are a good indication of the future.
- Past users’ experience – Most cars face the problem of initial kinks in operations. Any car that comes out in the market will have a newer and a better model after 5 years. Apart from the initial difficulties being smoothed over, there are bound to be new features as well. It is why looking at reviews and past users’ experiences are essential. You get an idea of what to expect and what to look for in other options you are considering as well.
- Safety features – Along with car insurance, there should be actual provisions for safety in the car as well. Most safety features in cars are similar. However, the better models have more safety features like airbags. If you are looking for a family-friendly car, it is also essential to look at the safety features of your passengers. Many car companies offer safety features at an additional cost.
- Insurance to pick – Right after you get an idea of which car you are going to choose, you should immediately start looking at the right kind of car insurance. Car insurance is the key to ensuring your car stays in good condition and can be maintained the same way throughout its life. Besides ensuring that you are not burdened with liabilities in case of an accident, car insurance also protects driver and Co passengers. There are two major types of car insurance – comprehensive car insurance and third party car insurance. Comprehensive car insurance is all-encompassing insurance that also includes party liabilities in case of collision. Third party car insurance only covers the third party liabilities and does not cover your own car in case of damage.
- Ownership cost – when you are buying a certain car the cost of that car is only one part of how much you would end up spending. Apart from this registration, road tax, car insurance, fuel charges according to the mileage, maintenance charges, and other expenses related to this car should also be accounted for in your budget. These factors sum up to make the ownership cost. If you buy a luxury car, then the ownership cost is bound to be more. Keep this in mind while making your choice.
- Comfort – If you are driving your car every day or if you like to go on long road trips, then you will need a comfortable car seat. The comfort of a car is relative and can range from the car being manual or automatic transmission, cooling seats, and anything that you think makes your journey more comfortable.
Buying a new car is a big responsibility, and to ensure you are on the right path, use this checklist and add your own points along the way to prioritize the features you think are essential.