Buying Car

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Published: 25th October 2012
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Buying Car

For most people, a car is the third-largest purchase they'll ever make, next to a house and an education. For this reason, it's worthwhile to spend a substantial amount of time on the process, to confirm that you end up with the best car for you at the best price you can get. Before you start, however, it's a good idea to ask yourself whether you really need a car. If you already have a car and just think it's time to get a new (or newer) one, be sure that the purchase really makes sense before proceeding. Is there anything else you could do with the money that would provide you with more value? If you're borrowing in order to pay for the car (as most car buyers do), do you really want to go into debt (or further into debt) in order to get a better vehicle?
Once you've decided to get a car, be sure that you understand that the car is NOT an investment. There are exceptions to this rule, such as some antique and collectible cars which can appreciate in value (although rarely as fast as stock investments). But for virtually all other cars, their value depreciates with every mile you put on them. So look at the car as an expense rather than an investment.
Before deciding how much you want to spend on the car, first determine how much you can afford to spend. This calculation will depend on your overall financial condition, which you can determine by putting together a budget . Also factor in the estimated value of a trade-in, if you have one. When calculating the cost of the car, include not just the purchase price, but all of the associated and ongoing costs: property taxes, insurance, repairs, gas, oil changes, parking meters, tolls, registration, and other miscellaneous expenses. Once you know how much you can afford to spend, you should look at this as a maximum; don't feel compelled to buy the most expensive car you can afford, if something significantly less expensive meets your needs. Most people spend 10-15% of their total monthly budget on all their car-related expenses, but we recommend aiming for 10% or below unless there's a good reason to do otherwise.
We're not trying to persuade you not to buy a car, or to buy a less expensive car than you have been planning to. But given that many people spend more money on cars than they should, and end up regretting it (or worse, not even realizing how much it's costing them), we want you to be confident that you've fully thought through the decision when you decide to take the plunge.

Once you've decided that you definitely want to buy a car and you have an idea of your budget, you should follow these 7 steps:
Decide whether to get a new or used car.
Decide whether to buy or lease.
Arrange for financing, if necessary.
Research your options.
Conduct test drives.
Decide from where you'll buy the car.
Buy the car.


Should I buy a used or a new car

Once you've decided how much you want to spend, the next big decision is new or used. The advantage to getting a new car is obvious: you're the first owner, so you know that nothing bad has happened to the car yet. In addition, you gain the full benefit of the manufacturer's warranty.
However, you pay for this piece of mind. Most new cars depreciate a few thousand Rupees as soon as you drive them off the lot, and the rapid depreciation continues for the next couple of years. In addition, insurance is more expensive for newer cars.
As an alternative, you might want to consider letting someone else foot the bill for most of the depreciation, by buying a car that's one or a few years old. The quality of cars has improved dramatically in the last decade, so a three or four year old car still has a lot of life left in it, and is much less expensive. With a given amount of money to spend, you'll probably get a lot more car if you go with a slightly used car instead of a new one.
Since used cars have more idiosyncrasies than new cars, there are a few additional steps in the process. For starters, you'll need to determine the value of any car you're considering, to make sure you don't pay too much. The values can be found easily on the internet. Keep in mind that if you buy from a dealer, you should expect to pay more than if you buy an identical car from an individual.
Next, have a mechanic conduct a thorough inspection of it. The Rs.2000-5000 cost will be well worth it if it turns up any serious problems. You might want to agree to a price in advance of the inspection, based on the problems the seller reveals; and if any additional problems are discovered, the price will be adjusted downward appropriately. If the seller won't let you have a mechanic to inspect the car, don't buy it; an inspection is a reasonable request, and their refusal might be an indication that they're hiding something.

Dealers often come with warranties, although they're significantly shorter than new-car warranties.

You may see features and compare Cars by simply clicking on this link
purtips.com/Automobiles/Cars .

So, we at www.purtips.com hope that the above has been proved helpful to you. If
you need any further clarification, feel free to contact us at info@purtips.com .

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