As well, decide on your mode of payment. If you do decide to buy a used car, again, do your research on to know what information you need before buying a used car. The struggles and hurdles facing the auto industry are unprecedented; so are the deals availed to potential buyers. You’re more likely to acquire money for the old car if you sell it on your own. You should always consider the additional ownership costs when buying a brand new car. You can purchase a fully loaded minivan for those big family vacations, a sleek new sports car, or a stripped-down compact for your new college graduate. For instance, consider checking out LendingTree.com and Bankrate.com. You have put a few factors into consideration before buying a car. Nov 8, 2015 by Jasmine Watts. They’ll do so immediately they realize that your sole focus is on payment. For instance, you’ll want to consider the annual registration fees, insurance premiums, and gasoline. One of the most notable factors in buying a new car may be the safety devices, features, and technology. You’re confident that it’ll fit your budget. How much of your earnings will you allocate towards car payment? We have so many car dealers in this country and some are conveniently online such as cheki.co.ke so before you set out to buy that car, compare prices. For example, before you buy that used car, make sure you find out just how many miles it has done before you are cheated into buying a much older car. 0800723340 In such cases, you’ll need to establish the amount you can comfortably afford to pay every month. Determine if the dealership beats your pre-approved rates. Know the much you can spend on a car. Choose which loan works for you. It’s thus vital that you get your choice right. It’s thus a wise thing to know all rebates which you qualify for. Bottom line is, do you research on every step you take to buy that car to make sure you have made the absolute best decision on each step. But, following the above guide will get you in the right direction. Most people cannot buy a car in cash and the best option is to borrow a loan. At this point, it’s time to visit various dealerships and conduct test drives. Licence Number : IRA/05/30639/2016. These, and many more, are just some of the fun features to consider when looking for a new family car. So, in case your credit is poor, be prepared to pay more each month. In case it does, finance your new car through that dealership. Yes, cars eventually wear out and prompt for replacement. In turn, that promises long-term satisfaction with the purchase you’re about to make. But the definition of what makes a car perfect is different for different people. They’ll then narrow down the potential choices to 3-5 models. Also, keep in mind that car payments fluctuate on a monthly basis. You’ll thus be likely to win the best deal possible. But again, have fun while you’re reading and learning! Other factors considered include age, gender, common location of driving and your marital status. There is a thing called a perfect car. Therefore, you ought to select something which will meet your specific needs. Even if the second car you drive feels like the right one, it's not worth writing the others off. Some of us are empty nesters who’ve been saddled with underfunded 401Ks and college bills. Then, you’d simply need to go for a car that you can afford. Buying a car is for many, one of the biggest purchases they will ever make. If it’s a just-launched/popular model, expect to pay full MSRP sticker. On top of the servicing costs of the car, we also have the annual insurance costs. These are the standard features which must be applied to all cars starts from 2017 imported or local made according to global NCAP till 2020. However, those are just average values. First, cars are known to be depreciating assets and second, they are bound to be upgraded in a few years. Very few people pay cash. No, they don’t purchase new cars like they’d buy clothes. It’s time to decide what you’d want in your vehicle. Many car lovers want power but this will come at a cost, the big fancy machines like Land Cruiser V8 will be rated at 4700 cc and at 5.5 km per litre. People don't buy cars like they buy microwave ovens. In turn, that makes for a strong buyers’ market. Cars eventually die and require replacement. Common brands like Toyota have continued to excel in the Kenyan market because of the availability of cheap spare parts and technical expertise in garages and service centers. Instead, they keep some as extra profit. Having a budget will also help you narrow down to the kind (new or used) and brand of car that you want. It’ll help you to plan the car financing options available better. Are you in the process of buying a new car? New cars often come with advanced safety features such as adaptive headlights, automatic parking, and backup cameras. In case your record features accidents and tickets, you’ll pay more. This is perhaps the most factor to consider when buying a car especially the second hand cars. In turn, that will save you headaches and a significant deal of money. It’s vital to define the differences between your needs and wants. Depreciation (losing value) Important Factors to Consider When Buying a New Car. We can’t guarantee that you’ll get the best deal on a car purchase. You’ve found your perfect car. Luxury brands like Mercedes have both availability of spare parts and servicing from the manufacturers. A new car is at the very peak of its value. But, that doesn’t imply that it’s now an easy time to purchase a car. Also, consider the costs to insure the vehicle, which may be more than you anticipated. Know why you want a car and research on the best one to fit that purpose. It nice to want the finer things in life, however, you have to select a car that is budget friendly. For example, it is important to know that cars depreciate in value so if you buy a new car, the value of that car immediately goes down in value the minute you drive it from the dealer. You won’t be required to do any of that stuff if you trade the car in. Most cars these days will go 50,000 miles or better without any serious technical issues and many of the initial buyers will get out of them at about that point. Ensure to be realistic about the old car’s condition. It might feel great to commute in style and impress those around you. Tips on buying a new car – Things to consider when choosing a new car It is only when you understand the purpose behind buying a car, that you will be able to choose the right type to be it an economy, family, luxury, sports, or an off-road vehicle. Insurers examine several factors to set insurance premiums. You should then let the dealer know that you’re aware of that car’s invoice price. But, ensure that their loan terms and rates are similar to your pre-approved loan. Will you have a surplus to sustain y… The dealer will know that you are expecting a good deal. No matter how low your EMI may be, if the car doesn’t have good mileage, you will end up paying more. If you’re in the market for a new car, you may feel overwhelmed by all of the factors that you need to consider. Taking these two factors into consideration, choosing a brand that is known to have a good resale value is the smart way to go forward. Everyone now wants the convenience that comes with having a car but getting one is not like picking a packet of milk from the supermarket. Rhapta Road Most people tend to finance, while others opt for leasing. While it can be a very exciting time, it’s important to not let the excitement get the better of you so that you make a potentially expensive mistake. We highly advise that you seek multiple quotes from different companies. In India, most car owners buy a car insurance policy because it is an obligation. Then, it’s time that you know how much the insurance will cost. Try your best not to roll a balanced upside down loan into a new one only because you’re tired of the old car. You can look up the ‘book value’ of the trade in using different resources. Factors to Consider When Buying a New Car. It’ll depend on your creditworthiness. What do we imply by the term ‘invoice price’? It is therefore very important to do your research on the brand of that you want. You’ll relate your wants with various factors. They take an average of 4-6 months to make the decision about which make and model they’ll purchase. Used car shoppers may be armed with a Kelly Blue Book or the Canadian Black Book to help determine a ball park figure, but it’s factors like mileage, wear … Also, consider things like reconditioning, price negotiation, and ownership transfer. We look at five essential factors you should look at before buying a family car. If it's more or less, so be it. Considering the amount of money you’ve got to spend, you ought to be aware of the kind of cars which will satisfy your specific needs. This does not just include the monthly instalment but also cost of petrol, toll and parking, which are parts and parcels of car ownership. Owning a personal car was once a preserve for only the very rich. This post may contain affiliate links. Buyers should choose vehicles with features that meet their needs but avoid extra features are unnecessary. Do your homework throughout this process. #1 Buying a Car Will Affect Your Savings Rate. With the increasing cost of petrol now at KSh 103/litre, it can quickly bite into your pocket. Buying a car will impact your ability to save. Look out for car bazaars like the one on every Sunday at the Jamhuri Park along Ngong Road. Don’t forget the cost of insurance premiums, too. Total costs of ownership add up quickly. It also makes it easier to know whether to buy a new or a used car or to opt for leasing one. Three Important Factors to Consider When Choosing a Car With nearly 300 different new car models available for sale, choosing one can be quite overwhelming. But, they barely spend the same amount of time to research new cars as the rest of the populace. Keep in mind that gas prices are highly volatile. If you’re not aware, then you ought to find out. Many buyers qualify for rebates. Such include styling, color, reliability, technology, fuel economy, comfort, capacity, and so on. Please refer to our Terms and conditions on this website. If you’re among that group, you probably need to go for a used Toyota rather than a new car. The MSRP includes hundreds – and sometimes thousands – of dollars of profit that the dealer will win. But, typically, they’re less likely to go down than up. There are two universal facts about buying a car that everyone needs to remember. If you buy a used car, it also important to make sure that you have cross-referenced the ownership details. They should tell you whether they were happy with the dealer and the car. Nearly 50% of all car buyers choose a new car based on their previous experience with another make or model. Through research, you will also find out if the spare parts of the car you want are readily available or not. At the end of the day there are a few reasons to treat a new car purchase pretty seriously – not impulsively like I personally did in 2014. So you have narrowed down on the car that you want and are comfortable with its pros and cons. If you are purchasing your car with a hire purchase loan, consider your loan eligibility. Of course, that’s aside from a new home. Various studies have found that 80% of car buyers make use of the Internet to research about vehicles. Fuel is the main running expense for any motor vehicle owner although the emergence of hybrid and electric cars is starting to take shape. It’d be wiser to plan for the financing for now. Simple, talk to people! For instance, there are cases where you’ll seek online reviews of a dealer you’re considering only not to find any. First, cars are known to be depreciating assets and second, they are bound to be upgraded in a few years. That nice red Range Rover you like may not be what you can afford. Even with rebates, discounts and negotiation, you will be paying top dollar. Now, you’ll get serious about purchasing your selected vehicle. Making smart decisions throughout the entire selection and buying process is inarguably crucial! Sometimes, these sites’ coverage might be spotty and incomplete. Going for cheaper and common brand cars will save you more money on the insurance, spare parts and servicing. The availability of spare parts and servicing greatly influences the costs involved in running the car. But, that’s a surefire way to retire broke is foolishly wasting money on a car. Never extend a car … Nairobi, Kenya You may have saved for the car or you could consider taking a loan. You are likely to purchase multiple vehicles over a lifetime. A new car is an investment; it’s something that you will use for many years, meaning that you should carefully choose your car. For obvious reasons, a good, clean record would be preferable to an insurer. Your long-term happiness with such a purchase is at stake here. Car dealers want to sell cars to stay in business. Establishing your budget for a set of wheels will be easy when paying cash. Good credit will enable you to access low-interest rates. In fact, that’s a reassuring sign that you will win the bet at hand. Of course, you’ve neighbors, family, and friends all around you who’ve purchased cars. If so, you’ll then need to determine whether you’ll sell the vehicle on your own or trade it in at the dealership. Buying a used car can be risky. We’ll inform you about all you’d require knowing before purchasing that car. There are many things to consider before making your final choice about what vehicle to buy. Cars do not come cheap so you need to have a clear plan on how you will pay for that car, be it new or used. For example some are open to trade-ins just in case you are looking to up-grade from your old car. Different individuals will have different needs for a car. In 2018, Statista conducted a survey in which they asked their users in the UK and America the key influencing factors that went into making their decisions when choosing a new vehicle. You’re aware of what you need and want. In fact, they qualify for some rebates that aren’t even made public. Here, you’d be staking thousands of dollars. This is because the second hand cars may not have their manufacturer presence in the country. You can easily make use of your pre-approved loan as a baseline against which your dealer will compete. Find out how different dealers have priced the car that you want. This can be done through the Kenya Revenue Authority and the National Transport and Safety Authority. But, the dealership will give you less money than what you’d get from a private buyer. Multiple websites allow customers to post reviews of the various dealerships available. Now, you already know the car that’s right for you. As a result, financing, trade-in values, and rebates are currently the best we’ve had for so long. If you have five candidates on your list, test all five. Do the research: Of course this is a hoary bit of advice, but it holds true every time. Next, you should look up that car’s invoice price. When we talk about fuel, Maruti Suzuki might … Factor in the price of insurance, fuel, and maintenance when estimating the amount you need for your new ride. It is a great step you are taking when you decide to purchase a car. In fact, dealers are known for not availing all discounts available to them. Don’t walk into any dealership without having done research. Maybe you intend to replace your old ride with a new one. We want to help lessen the complication involved. Maybe, you belong to an organization(s) that entitles you to additional rebates. This research on the different dealers out there will also help you get information on the different incentives they have. While vehicles may play a part as wealth creators, they can also be wealth destroyers. For obvious reasons, a good, clean record would be preferable to an insurer. In fact, a new car is the 2nd most costly item most people. Also, it’s the chance to see the cars up close and compare the different color choices available. Strive to get an amount close to the average ‘book value’ from the dealership. This is perhaps the most factor to consider when buying a car especially the second hand cars. Through research you will also learn that it is important to have a car inspected before buying it and especially a used one to avoid buying junk in the name of car. In your case, it might take less or even more than that. It refers the price the dealer pays the manufacturer for a car. There are two universal facts about buying a car that everyone needs to remember. But, ensure to factor in the registration fee and the sales tax on your purchase. Those seeking something completely different to drive will compare vehicles. It’s not yet time to head to the dealerships, yet. 1st Floor, Rhapta Heights, Pricing varies with age, content, demand, and supply. There are other amounts to factor in here, as well. 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