December 6, 2021
This Guide Can Help You Make Up Your Mind
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Next to a house, a car may be the most significant purchase a person can make in their lifetime. While buying a car is an exciting moment, the process can be intimidating.
Aside from the financial investment involved, you have to deal with the added pressure of searching for the right car. You’d want to make sure that it reflects your personality while offering you everything you’ve been looking for in a vehicle.
If you’re having uncertainties, we’re here to help you decide. Here are the top 10 questions you should ask yourself before buying a new car.
- Can you afford a new car?
First things first, consider your financial status. Do you think you’ll be able to pay for the car of your dreams?
Most financial advisors would say that your car payment shouldn’t be over 10% of your gross monthly income on a 48-month term after you pay at least 20% of the purchase price.
As for lenders, they may take 20% of your gross monthly income as your amortization. If you earn $3,500 a month, they may set your amortization payment for your auto loan at $700 a month. This could take a toll on your financial health.
If you haven’t done it yet, check your monthly expenses to see if you can still afford to pay your car loan amortization.
Also, besides the down payment and monthly amortizations you need to pay, you need to take these additional car ownership costs into account:
- Auto insurance
- Fuel cost
- Repair cost
- Preventive maintenance cost
- Emergencies
- Should you go for a new or used car?
A used car may be good enough for you if you’re tight on budget. However, bear in mind that such a vehicle doesn’t come with a factory warranty. Indeed, choosing between a secondhand and a brand-new car can be tricky as both have pros and cons. Here’s a list to give you a quick overview:
New car advantages:
- Full manufacturer’s warranty
- Freedom of choice in terms of spec level, engine, paint color, and other options
- Low interest rates
- Equipped with the latest technology
- Free from any damage, stains, and with barely any kilometers on the odometer
New car disadvantages:
- Rapid depreciation
- Associated on-costs and taxes
- Limited to servicing at the selling dealership
Used car advantages:
- More affordable
- Smaller loan costs
- Quicker payoff
- High-quality options
- Sellers are less pushy
Used car disadvantages:
- May not come with a warranty
- Limited choices
- Higher interest rates
- Hidden problems (involved in an accident, had been flooded, etc.)
At the end of the day, buying a new or secondhand car depends on what you want and how much you can afford to pay. You can save a lot of money if you settle for a used automobile, but if peace of mind is what you desire, then go for a new one. Just be sure that it’s a decision you’ll never regret.
- What type of running costs can you be able to pay?
Servicing fees vary greatly depending on a vehicle’s make and model. Some manufacturers offer fixed-price servicing for a set number of years. That said, you should calculate the cost per year of the servicing to make sure that it won’t burn a hole in your wallet.
Insurance is another major cost to consider. A vehicle’s popularity, power, and appeal to thieves, as well as the cost of its repairs and parts, are issues that can impact the cost of insurance.
Then you have to consider fuel economy. Keep in mind that the actual fuel economy will differ from what the manufacturer initially claimed since this will depend on your driving habits. To get a better understanding of these costs, you can consult research websites and forums.
- What’s your present situation? Are you planning to raise a family?
Your answer here will greatly influence your decision on what vehicle to buy. If you’re single who’s in no rush to have a family, a soft-top jeep or a convertible would be perfect. If you’re already a parent, or you’re planning to become one very soon, an SUV crossover would be your best bet. Remember that strollers, car seats, and nappy bags will take up a lot of space inside your vehicle.
- When and how far are you planning to drive?
Do you see yourself getting into a lot of off-road driving in rural areas? If so, a 4×4 would be an excellent choice. If long-distance driving on the highway is your thing, you’d love to have a comfortable car with good fuel economy and smooth handling.
- Do you care about your car’s appearance?
If looks are among the top factors you consider in choosing a new car, know that it could cost you extra. For instance, if you find that your chosen model is not available in your preferred color, you’ll have to pay additional fees to have one such model repainted.
- What about great tech?
Are you a techy person? Are features like internet access, infotainment, and satellite navigation important to you? Or do you prefer to keep it simple and traditional?
- How much auto power do you need?
Whether you’re an adrenaline junkie who just loves the feeling of speeding in the fast lane or you appreciate smooth handling and powerful acceleration, a high-powered car may be the right pick for you.
If you’re at the opposite end of the spectrum and you prefer to stay below the speed limit in traffic, there’s no need to invest in a car that comes with extreme horsepower.
- How long do you plan to keep the car?
Since there are cars that have a better resale value than others, you might want to buy a model that holds its value well. That is if you plan to trade it after a couple of years.
- What do experts and consumers have to say?
You can never go wrong with hearing what automotive industry experts and other drivers are saying about the model you plan to get. Read reviews from owners and check forums online to see what they’re saying about the car of your choice.
Touch the Hearts of Our Veterans with Your Old Auto
Are you planning to get rid of your old car to make way for a brand-new one? You can avoid the hassles of trying to resell it by simply donating it to us at Veteran Car Donations. When you do that, you’ll not only get to dispose of your unwanted auto in the quickest way possible, but you’ll also be helping improve the lives of the suffering veterans and their families in your community.
We’ll auction off your donation and use the proceeds to support the life improvement programs and services of our veteran-focused charity partners. These IRS-certified 501(c)(3) nonprofits provide deserving veterans with free quality health care, financial aid, housing assistance, employment opportunities, family support, educational scholarships, psychotherapy services, and many other benefits.
As our donor, you’ll get to enjoy the maximum tax deduction based on the selling price of your vehicle during its auction. We’ll send you the 100% tax-deductible sales receipt of your car within days after its sale. You can then use this receipt to claim your tax write-off in the next tax season.
You’ll also benefit from our free pickup and towing service, which is available to our donors in all parts of the country.
Aside from the material rewards in store for you as our donor, you’ll also be privileged to enjoy a most satisfying donating experience, knowing that your act of charity will help transform the lives of our nation’s heroes.
You can donate not just your old car but almost any other type of vehicle.
If you want to learn more about our vehicle donation program, feel free to visit our FAQs page. For inquiries or concerns, call us anytime through our toll-free hotline at 877-594-5822 or message us here.
Do Something Extraordinary Today!
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There’s not a single doubt that your vehicle donation will go a long way in improving the lives of the struggling vets and their families in your area. Call Veteran Car Donations at 877-594-5822 or fill out our secure online donation form now!
Last Updated: March 8th, 2023