MOTORING NEWS - Becoming a car owner is exciting and a big step but there are some financial implications first-time car buyers are not always aware of.
If you’re planning to buy your first car, here are a few things you should know.
1. There are more costs involved
When you’re a first-time car buyer it’s easy to miss some essentials, such as how much you will need to spend on fuel and maintenance. If you’ve only been putting the car’s monthly installment under your expenses, then you have not calculated all the costs involved, and it’s critical to rework what the car will cost you on a monthly basis before you go ahead with the purchase.
2. Don’t only think short-term
When choosing the car you want you should not only be thinking about your current lifestyle but also where you plan to be in the long-term. A small, luxury car may suit you perfectly now but, if you’re planning to start a family in the next few years, you might need more space.
It’s advisable not to spend too much on your first car when you plan on trading it in after a few years; you don’t want to be in a situation where you still owe the bank more money than what the car is worth. Check out the ‘Pros and Cons of Trading in your Car’.
3. Acquiring finance is easy
When you’ve decided on what car you want, and have worked out your budget and the costs involved to know you can afford it, applying for finance is as easy as visiting the dealership. You can also get thorough advice from a finance and insurance representative, who will be able to tell you about everything involved when going through the process of the car loan application.And lastly, as a young car buyer you also need to be credit courteous, borrowing only when you need to and always making your payments on time, which not only saves you money but also shows that you can be trusted. This can improve your reputation with banks and will make it easier for you to be awarded credit in the future.
This article was written in collaboration with Hippo.co.za
