First time car buyers are surely to face a lot of uncertainty. This can make the task of buying cars for first timers somewhat difficult as they tend to get confused too. The story is the same for all first time car buyers. What is required is to understand the process of buying a car by taking into consideration the aspects of financing and car insurance which are integral part of the buying process. In this article you will get some assistance and direction about how to handle the task with confidence by overcoming the confusion surrounding it.
Get ready with the budget
The process of buying a car begins with selection of the brand and model of your choice. It is likely that you have some preference of brands like Honda, Toyota, Ford or even BMW. Once you have decided on the brand of car and the model, gather information about the price range for it. This is the average market price from dealers. Add the allied costs of car registration and buying car insurance as well as the cost of financing to work out the comprehensive budget for buying the car. Hopefully, you have calculated the cost of running expenses to maintain the car that will have to be added to the car buying cost. The budget that you make has to be based on your affordability to bear the financial obligation related to acquisition of the asset.
Look for financing options
Buying a car has become very easy as there are a lot of financing options at your disposal. It is now easy to get money for buying cars. Dealers offer multiple options for financing as they represent several car finance companies. However, you are open to walk to other financing companies of your choice. Since the cost of getting the money is important, work out various offers down to the last pence to figure out what is your final payout. There are varied interest and terms of payment to select from.
Know your credit score
Be sure to know your credit score before you engage in any kind of negotiation for car finance. This is important because the better credit score you have, better terms of payment and lower interest rate you can negotiate. Indeed, car loans are also given to people with poor credit rating but definitely the cost of getting money is much higher. Shorter repayment terms entail lower interest rates but monthly payments are more.
Car insurance is mandatory
By law, you need to get a car insurance cover the moment it hits the road from the showroom. This mandatory insurance is known as Third Party Liability Insurance that covers you against damages that is caused to other people and property. However it does not protect your car against theft, fire or any other kinds of damages. To get these also covered you have to opt for comprehensive policy that would cost much more than the Third party liability insurance.
The choice of insurance policy over and above the statutory one is a matter of personal choice and affordability.