What do you consider when buying a new vehicle? This is a very important financial decision for most of us, and you want to find a car that matches your requirements and budget. There are various vehicle models from different car manufacturing companies, and to select the best option, you will need to compare the current inventory. In this article, let’s look at the ten most important factors you need to consider.
Every financial decision starts with a budget. Buying the right car at the right price is a little tricky. To crack the best value, you need to learn and understand the basics. While planning your new car’s budget, you should also consider insurance, gas, and maintenance.
For example, you have a budget of $600 for car payments, it could cost you over $1000 a month for all car expenses included.
Let’s do the math:
- $600 car payment
- $250 car insurance (Might be higher with the bad driving record)
- $150 for gas (Depending on your driving), and around
- $70 for maintenance (you might need an oil change every 5000 to 8000 km or a set of new tires in a year and a half) depending on your driving
2. Wants vs. Needs in a car
Selecting a new car is no joke. The kind of options and features available these days may confuse you. There might be a self-driving feature available, but the question is, do you need that? The leather seat option comes in high-end models, but again the question is, is it essential? If you live in the cold country, then heated seats and a remote starter are luxuries you might want to have. Needs and wants will differ from person to person. It’s highly recommended that you should write down your requirements to get the right vehicle. Keep in mind high-end models will have more maintenance cost because of added features.
3. Features and Technology
As the car industry is changing, and new features are added every day to ensure competitive advantage. To have basic technology options is a good idea; they keep you and others safe on the road. For an instant, most of the vehicles come with a head-on collision sensor. This sensor either stops you or gives a warning if you are following too close. In most mid-model cars, the manufacturer installs a remote car starter. You don’t have to buy a high-end model to get that. Auto climate control is also becoming a standard feature where you can set the perfect temperature, and it automatically adjusts for you.
4. Perform an Online Competitive Research Comparison
As mentioned, most vehicles come with essential features, and consider looking into similar vehicles of other brands. If you consider buying a Toyota Camry, see what Honda Accord, Nissan Altima, or maxima have to offer? This comparison will increase your knowledge about the features and prices that other competitors have to offer.
5. Electric or Hydrogen cars
It’s surprising to see how Tesla has taken over the market in a brief time. It might be the answer to gasoline-powered cars, but Honda and Toyota recently launched hydrogen-powered vehicles that are more eco-friendly than battery cars. If you drive more than 100 km a day, consider these options also. It might be a little more expensive initially, but your savings are enormous in the long run.
The reliability of the brand is also something to be considered. Avoid buying first-generation vehicles of any brand. For an instant, Nissan came up with CVT transmissions and had significant issues. Let’s take the example of the Honda civic 2015, 2016, 2017 models. It had the first generation 1.5 L turbo engine. Being the first-generation vehicle, it had an oil dilution issue. This doesn’t mean that every first-generation vehicle is terrible, just a suggestion “Avoid if you can.”
7. Cost of Ownership
It’s not about what vehicle is costing you at the time of purchase; it’s about what will it cost you to keep it running. Toyota and Honda have the lowest maintenance cost; BMW and Benz have very high maintenance costs. I have attached a chart for quick reference.
8. Selection of Dealership
It’s important to choose the right dealer to do business with. Google reviews can help guide you. If you discover reviews from existing customers that faced challenges with the dealership in essential things, avoid them. Find a knowledgeable salesperson who can explain to you all the features and benefits of the vehicle. Keep in mind, a knowledgeable salesperson can help you understand the difference between your needs and wants, or simply talk to www.dealgrinders.ca for this. Our knowledgeable team is always here to help.
9. Vehicle Presentation, Test drive, Extended Test Drive
After understanding the features in detail, it’s time to take it for a spin. Make sure you are taking a similar model of what you are buying. Test drives are there to see how comfortable the vehicle is. It will also tell you how the car handles the road. There is nothing wrong with asking for a second test drive in order to better explore all the features. It doesn’t hurt to ask if the car is available for an extended test drive which would allow you to have the vehicle overnight. This may help you feel more comfortable in your purchase.
10. Negotiating the Best Price
Now that you have done your research, compared vehicles, and completed a test drive, it’s time to look into numbers. Always ask what the company has to offer in terms of interest rates or rebates. While buying electric or hydrogen-powered vehicles, look for government rebates. Most dealerships have promotions running like the free set of tires or a couple of free services. The better you understand the features, the better you will understand the numbers. It can reduce the cost of the vehicle if you sacrifice some features to make it more affordable.