Having troubles buying a new car? Here are five useful steps to help you in your decision.
Step 1: Choose the Right Car with Realistic Price
Choose the right car with a realistic price. You need to be comfortable in paying it through the loan or all cash. This will help you calculate your monthly payments. You can use a loan calculator for the computation. Loan calculators are available online.
Step 2: Choose the Appropriate Payment Scheme
Decide how you want to buy the car. You should base this decision on your present financial capacity. When you can afford to pay the car in cash, go for it. This will save you from paying monthly payments and interests. In case you cannot, you still have the option to take a loan and make monthly instalments.
There are car loans that will help you. Car dealers can help you get a loan once you do business with them. All you need to do is find the best loan offered with low-interest and long-term payment scheme.
There are car loans that require you to pay a down payment. The down is most of the time equivalent to 20% of the car’s real market value. There are loans where payment of a down payment is not required. They will just let you pay the monthly bills with applicable interest.
Step 3: Gather all the Needed Documents
Gather all the necessary documents required when buying a car. Buying the car on a cash basis is faster compared to the instalment since it involves fewer documents.
Car purchased on instalment basis needs more documents. This may include proof of income, proof of employment, and valid IDs. There might be other requirements for this. You should ask the car dealer for a complete list of what is needed. This allows you to prepare all the requirements.
Step 4: Pay the Amount Required
Pay for the car you have chosen. For cash basis, it is a one-time payment so you should bring the exact amount with you.
When you buy the car on instalment basis, you are usually required to pay the down payment. Bring an extra amount for other fees charged. Make sure to ask for the succeeding monthly payments to avoid penalties.
Step 5: Sign the Papers and Drive Your Own Car at Home
Sign the necessary papers after the payment. This includes the proof of ownership, insurance policies, and the loan contract. The proof of ownership proves that you legally own the car. The loan contract on the other hand states the terms and policies about your payments.
When all these are accomplished, you can automatically drive your new car home.