- June 20, 2019
What Costs to Consider When Investing in a New Car?
For first time buyers, investing in a new car can be a daunting prospect, especially if you do not know what you are looking for or the costs involved in buying or renting a car. To make sure that you are prepared for viewings and to help you kick off your research, here is a compilation of the most common FAQs that people have when investing in a vehicle.
Should you buy or lease?
The first monetary consideration that you should consider when investing in a car is whether you should buy or lease. Buying a new car is more expensive in the short term as you will most likely pay for the car up-front. However, you will then have this car for life, and this can be an excellent option if you intend to invest in the same car for many years. Cars lose their
value over time, though, and so you should consider the disadvantages of decreasing car value over time in an owned car. Leasing means that you will not have to pay up-front, and you will most likely pay in monthly installments over a period of time. However, this means that you will never fully own your car, although that might be just as well if you intend to change your car on a regular basis. If you intend to lease an Audi in the short-term, Carparison can help you to make the right decision through its deals finder service.
What is your budget?
When considering getting a car, you need to think about what your budget is so that you will be able to consider what you can afford up-front and also on a monthly basis. There are many budget calculators online that can help you to determine what you can afford, although experts recommend that the monthly amount that you pay out on your car should be no more than 15% of your monthly earnings.
What other costs are there?
There are also many other costs that you need to consider such as the rising cost of car insurance for particular models and types of cars, for instance, a sports car will have higher car insurance than other models. Not only this, but you also need to consider the running costs of the car, which you can determine through the size of its engine and its petrol or diesel tank, as well as if the car has any liability to maintenance issues that you may have to pay out for. You also need to think about the decreasing value of the car over time, and how much the resale value of the car would be if you ever needed to sell.
What should you check at viewings?
To make sure that you can afford the car in question, you should check the car over thoroughly at viewings to make sure that there are no maintenance issues which may need to be fixed, as well as making sure that the dealer is reliable. You should also check that the car has all the papers and documents that it needs, which can be expensive to invest in out
of your own bank account.