Kumari Palany & Co

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What are the questions to ask yourself before buying a car?

Posted on: 25/May/2017 5:34:06 PM
It is a big decision to buy a car. You should choose an attractive model that can accommodate all your family members and make a financially smart decision.
 
Below are six questions that you need to answer before you decide to buy a car:
 
Am I financially prepared to bear the burden?
In general, most buyers prefer to opt for car loans while making a purchase. You need to understand the pressure you will go through with EMI. You need to be aware of it before you take loan for the very first time. When you already have other EMIs to be paid, make sure that not more than 40 percent of your take home salary is allotted for EMI altogether.
 
Am I prepared for car maintenance cost?
Car maintenance is not the same as maintaining a bike in terms of servicing cost. Car maintenance is three times costlier than that of bike. When you tot up the fuel cost, it is going to be an all new territory for managing. Be prepared for all of it that can on the whole increase the monthly expense your car brings with it.
 
Is it better to opt for a second hand car?
There is one more major question: should I go for a brand new one or a second hand car. Cars are considered as assets in countries like India. In real, it is actually a liability. So, it should be kept as an affordable liability.
 
When you buy a second hand car, the lifetime cost becomes very less because of larger service requirements. Make sure to do a complete check while purchasing a second hand car. So, when you wont be using the car very often, you may opt for a second hand one.
 
Am I going to sell the car on some day?
Will I be replacing the car in a few months or years down the line? Ask this question to yourself before buying. There is good resale value for a few car types. So, the more you care for your car, the better will be the resale value. Make sure to have proper records of all car documents, because when documents are lost, it may turn into a hassle at the time of selling car.
 
Servicing for the car:
You should make sure that you are buying the car from a brand that offers excellent service. With improved quality of car service, you will get better value out of the car. When shifting cities or while finding service stations, having a big service network will be of help.
 
Is every cost including insurance is considered?
You should consider all the costs including that of music system or installation or parking aids. The insurance premium per year for a motorcycle may range between Rs 1500 and Rs 2000 whereas that of a car will be between Rs 7000 and Rs 10000.
 
Perhaps, the car company will sell the car along with installed music system, but for your fancier needs, get ready with costs that may rise high. Beware of all the recurring costs.