Things to consider when buying a car
If you are planning to buy a new car, there are several aspects to take into account. For example, choose between a new car and a second-hand car, choose between purchasing a car and leasing it, and so on. In this article we describe various points of attention to take into account when purchasing a car. This reduces the chance of a bad purchase!
Choice between buying and leasing a car
When looking for a new car, the first thing to consider is the difference between buying a car and leasing a car. In the past period, leasing a car was mainly interesting for business drivers. Nowadays, there are also more and more private individuals who choose to lease a car. Did you know that it is also possible to eventually become the owner of a car with a lease contract? You can read more about this in the next part of this article.
The advantage of buying a car is that your monthly expenses will usually be lower. After all, you no longer have to pay for the repayment or rental of a car. Conversely, leasing a car offers the advantage that you do not have to make a large investment in advance. This is particularly interesting if your current car has suddenly broken down and you do not yet have enough budget for the purchase of a new car. This way you never have to be without a car! An additional advantage of a lease car is the fact that these cars are often new.
Difference between financial and operating lease
As already described, leasing a car has become increasingly attractive for private individuals. There are several leasing companies that put together contracts for a private driver. Such a lease contract often includes the costs for maintenance of the car, the repair of the car in the event of minor damage, the road tax for the use of the car, and so on. When concluding a lease contract, you can choose between two different types of contracts, namely: financial lease and operational lease.
By operational lease we mean the use of the car. You are not the owner of the car, but you borrow it from the leasing company for a fixed amount per month. With a financial lease you, as it were, take out a loan with the leasing company, which you pay off in part every month. This means that the car becomes part of your property every month. Instead of a financial lease, you could also opt for a car loan. There are several lenders that offer car loans to individuals.
Buying a new car or a used car
If you decide to invest in the purchase of a car, for example by taking out a car loan, then the following option presents itself. Are you going for a completely new car, or are you opting for a second-hand car? By choosing an occasion you generally save money. A used car is considerably cheaper, because the value of a car drops considerably in the first year. After that, the depreciation of a car often becomes relatively less. Conversely, you could argue that a new car may have a longer lifespan and requires less maintenance than a slightly older used car model. A salesperson can tell you more about the maintenance history of a used car. This gives a good idea of the money you will spend annually on maintaining your car.
Bring someone who knows about cars
The goal of a salesperson is, of course, to sell his cars. For this reason, it may be wise to bring an expert in the field of cars with you when you go to view a car. You may have a good acquaintance or a family member, with a lot of experience in the trade and servicing of cars. This makes it easier to estimate the value of a car. This is obviously not necessary with a new car. In particular, it concerns a used car! This can also be the case when leasing cars. A lease car does not always have to be new. You can also opt for leasing an occasion, which usually saves a lot of money.
In addition to the possibility of taking an expert with you to estimate the value of a car, you can also look on the internet. Compare the price charged for a car with the prices of similar models on the internet. Also pay attention to the mileage of the car and that of comparable models. Also, the year of manufacture of a car will affect the price charged for the car. There are several websites where individuals and companies can offer their cars for sale.
Buying a car from a dealer or private individual
Although in some cases it may seem interesting to purchase a car through a private individual, it is recommended to do this at a car dealer. For example, a private individual may withhold important details. This can be done deliberately, but also because someone is not aware of worn parts, for example. If you have little knowledge about the condition of cars, it is a great risk to purchase a used car from a private individual. If you do, always request the maintenance history of the car! From this you can often get the necessary information about the condition of the car.
Take out car insurance after purchase
After you have purchased a car, you still have an important action to take. For example, the car must be registered in your name and it is necessary to take out car insurance. Without car insurance, it is not allowed to use the car on public roads. When taking out car insurance, pay close attention to the different types of insurance that are offered. You can choose from WA insurance, WA insurance with limited hull and comprehensive car insurance. An all-risk car insurance is also called a liability insurance with a full hull.
The better the insurance cover for your car, the higher the premium will be. It is not always necessary to opt for an insurance policy with extensive coverage. Especially when you buy a car with a relatively low value. For example, think of a car that you only expect to use for a short time. In such a case, the high premium does not outweigh the relatively low costs of repairing damage or replacing a car.