Top 5 Questions to Ask Yourself Before Buying a Car

Top 5 Questions to Ask Yourself Before Buying a Car

Although it is one of your important financial decisions, there is no doubt that car buying is a confusing process. To help clear up some of the confusion, we have compiled a list of the top five questions that you need to ask yourself before buying a car.

1. What is the maximum you can spend on a new car?

The car market is flooded with so many options that it can be easy to spend too much while buying a car. Hence, you need to decide what is the maximum amount you can spend on a car. According to financial experts, you need to draw a budget for a vehicle by focusing on two important elements which are the down payment and monthly installments you can afford. You need to pay the maximum amount you can as a down payment without touching your savings. Don’t just look at the base price but also look at the total price of owning the car.

2. How important are safety ratings for you?

Many people give more importance to appearance and performance of the car and forget the safety aspect. Every car comes with safety ratings that tell what can happen to passengers and pedestrians in the case of a major accident. Before buying a car, check the car crash safety ratings and pay attention to the safety features provided. Some safety features worth considering are side airbags (front airbags are default), electronic traction control, anti-lock brakes, accident warning systems and tire pressure monitors.

3. What are the operational costs of the car?

Not all cars are made the same and operational expenses are an important part of car ownership costs. Before buying a car, find out the mileage per gallon offered, monthly repair and maintenance costs, registration fees and taxes, monthly insurance premiums and other expenses. Remember, all of these expenses could drain your monthly budget and you need to ensure the car you have selected has affordable operating costs.

4. Can the price of the car be lowered?

The loan terms and conditions change with each lender. A lot also depends on your credit score. Before you approach any lender or bank for car financing, check your credit score. If you have a good credit score, you can ask for a lower interest rate that will save you money in the long run. Many car dealerships also offer cash rebates or discounts to entice the buyer. Before you finalize the car dealership and the model of the car, check whether any car dealerships are giving you better offers. If you can show the car dealership what others are offering, the car dealership might offer something similar to strike the deal.

5. Does the car make you happy?

Although purchasing a car is a big financial decision, it is also an emotional one. You need to make the decision under strict reason and look at all aspects of the car purchase. While buying the cheapest, most fuel-efficient and reliable car is a good idea, it is necessary that the car purchase makes you happy. It doesn’t make sense to fall for undue compromises and drive out of the car dealership with a car that does not make you happy.