Owning a personal vehicle has become an absolute necessity for most of us, and an increasing number of first-time buyers are leaning towards buying a used car instead of a new one. While the exact reasons for this decision differ from person to person, a few tend to be common.
For instance, there’s a substantial difference in cost with pre-owned cars, and personal loans can be used to pay for them. You’re also likely to have a few nicks and bumps while you’re learning how to drive, and the financial impact of this happening with a new car can be traumatic!
Whether you’re buying your first car or just buying a used car for the first time, making the wrong choice can be a nightmare. Fortunately, it’s not as difficult or time-consuming if you analyze your usage carefully and follow these tips:
- Think of Where You’ll Use it – Forget individual models, just the number of vehicle types available today is mind-boggling. While you don’t need to limit yourself to just one type of car, you need to know which ones you don’t want. SUVs are large and take a lot of getting used to in traffic, but you would regret buying a low sedan or hatchback if you travel to the hills often.
- Decide What Fuel you Need – The choice of fuel should be completely based on your usage and convenience. A diesel car will reduce fuel costs, but petrol cars are cheaper to buy and maintain. CNG and LPG are difficult to find outside metros and the fuel tanks tend to take up room in the boot. While they’re the cheapest to run, there’s also usually a long queue at filling stations.
- Go to Authorized Dealerships – Professional dealerships inspect cars thoroughly before putting them up for sale and most of them even offer their own guarantees. The assistants there might be able to guide you towards a better decision and you can test drive various cars without running all over town. Unless you’re an experienced car buyer, don’t ever approach used-car ‘agents’ who advertise with flyers in your newspaper!
- Don’t Rush your Decision – A car is something you’re going to use every day, so take as long as you need to find your perfect match. Prioritize your preference for utility, comfort, price and even style. Test drive all the options and seek advice from experts, talk to people who own the models you’ve narrowed down and get some feedback. You can get a used car loan quite easily, so don’t buy a car just because it’s the only one that fits in your budget.
- Think About Cost-of-Ownership – Even if it’s the best one on the market, remember that you’re buying a car already been used by someone else. First-time buyers often forget to factor in maintenance while calculating the cost of their car purchase. Make sure you have enough money left over to deal with breakdowns and repairs. A personal line of credit through an app such as MoneyTap can be handy in case of any large unforeseen expenses.
One of the most important things to do when you’re buying a used car is to enjoy the journey. And like with any other journey, you’ll have a lot more fun if you’ve done enough research and planned it carefully.
If funds are tight, MoneyTap’s online loan app can help you get on the road right away, while spreading out the cost of your purchase over a tenure of your choice. Download the app and apply for your used car loan today!