Purchasing your first car is often considered a milestone in the 20-something life and maybe even a luxury for some. However, before you rush down to your local car-dealer to pick out your perfect ride, here are 5 things you should consider before making this big life-changing purchase.
As a young person – possibly a fresh graduate with a student loan – the price of your new ride is probably the most important consideration. Are you going to splurge out on a big brand car that will inevitably place you in debt for (more) years to come? Or will you choose the more practical and affordable option? Furthermore, it is important to consider whether you have the means to finance this new purchase and be able to afford the monthly loan payments.
Once you have sorted out the price point for your new vehicle, there is also a need to consider the size of your vehicle. Would you be consider getting a tiny, sporty 2 -seater or a larger 6-seat car? This would yet again be determined by your practical use of the car. If you are purchasing a private vehicle for your daily commute, a medium sized 4-seater would probably be the most ideal. You definitely do not need a massive Jeep to drive to work daily and that tiny 2-seater sports car would be almost useless when you have to drive larger groups of people or when you are moving from one rental house to another.
3. Alternatives: Used Cars
If you are on a limited budget or are already financially crippled, why not consider getting a second hand car? Despite its ‘used’ status, secondhand cars can get be a great buy especially for its significant lower cost. Look out for second hand cars that are less than 5 years old and have a lower mileage. A secondhand car would be a more affordable purchase for a young person as compared to a more expensive new vehicle – you could easily upgrade your car after a few years when your income is more stable!
Did you know that the resale value of yellow cars depreciate slower than black cars? It’s true! Cars with eccentric colours like teal, yellow and green have a higher resale value in 5 years time compared to their black and blue counterparts. Perhaps eccentric colour choice should be in your list of requirements of car purchasing if you are planning to sell your car in the near future. That is, if you don’t mind being the center of attention at intersections.
5. Car Insurance
Many first time buyers often omit the importance of car insurance – and the cost of buying insurance! Car insurance premiums vary depending on driver’s age, car condition and age, but know that you are never safe driving on the roads without a comprehensive car insurance policy. It is important to choose a suitable and affordable car insurance policy before you finalize your purchase for your car.
Images via: parentwheels.co.uk