The decision of buying a new car isn't an easy one. In order to help you organize your finances and make the best decision possible, we offer you some smart advise, starting from the convenience of getting a car and finishing in the acquirement of insurance for your vehicle.
KEY POINTS BEFORE MAKING THE DECISION
1. Do You Really Need to Buy a New Car?
One of the biggest mistakes people make is trading their cars frequently. Nevertheless, if you are trying to save money this could be a really bad idea! So, before you go car-shopping, check if you can keep your car longer. If that's not an option, then look for smaller models. They are often cheaper, lighter and even have cheaper insurance.
2. Car Maintenance
You can save some money in car maintenance expenses if you keep your car properly tuned and change the oil every 3,000 miles. This way you will use less gasoline and extend the life of your engine.
Other tips you can take to save in car maintenance are: check your air filter every month, the tire pressure and fluid levels. This will help you reduce the gasoline mileage and protect your engine.
3. Reduce Costs by Using Other Options
If you are willing to save some money, then you should organize a carpool to work. By sharing the driving you can save an average of $20 per month. Another advantage of carpooling is that it can help you reduce the annual mileage on your car. Besides, the insurance company may charge your less as it also reduces the risk of an accident.
BEST INSIDER TIPS FOR NEW CAR BUYING
In order to decide how much money you could spend on a car, you will have to take a good look at your savings, your income and your credit. It’s important that you consider that a car will bring many additional expenses to the ones you have now.
When you buy a car, you’ll be asked to make a down payment on the total cost of the car. It’s recommended that you pay at least 20% on its value. For the rest, you can take out a car loan, which you’ll pay off within a fixed term.
Car loans accrue interest, so you should wait if you’re expecting an additional income in the near future. This way, you’ll be able to put down a larger down payment and reduce the total car loan cost.
Each car brand offers many models with all sorts of features and optional accessories. Of course, the more basic the car is, the cheaper it’ll be. This said you should list what you need in a car and what you’d like to add and balance your options. Stay realistic and remain below your initial budget.
In addition to the amount that you’ll have to put as a down payment and your car loan’s fees, you have to take the car’s expenses into account. These include gas, repairments, insurance and other monthly payments. That’s why it’s very necessary to compare the cars’ gas mileage. In the long term, this can save you a lot of money, mostly due to the unsteady fuel prices.
EASY STEPS TO BUY A CAR INSURANCE
Firstly, take your time to search for different policies and shop quotes. You can ask an auto insurance agent in any insurance company, who’ll give you all the information that you need to know about their offers.
Another source of personal answers is an independent broker. With their knowledge on the market, they can assist you in the search for the perfect insurance for you. They can bring forward the offers of many companies and help you choose the most suitable one.
You can even get an estimated quote through an online or phone questionnaire from a car insurance company. They’ll give you the final quote once you’ve submitted other documents, such as your credit information or driving record.
Now that you have several car insurance quotes, you should compare them. You can use online and free tools, like Compare’s auto insurance tool. Even if you find a small monthly difference, it can add up to a significant annual saving. Don’t be afraid to ask for possible discounts! In addition to this, you can bundle your car insurance with your rental or homeowner’s policy and save even more money.
Last but not least, you should go over insurance quotes every six months, in case the market’s situation changes or you’ve increased your credit-based insurance score. In this case, you can lower your auto insurance rate.