Friday, 10 May 2013

A Guide To Buying A Vehicle

Consumers who buy the wrong vehicle may have to face serious consequences.  For example, cars that require repairs or maintenance could cost buyers thousands of dollars.  For this reason, buyers need to consider several issues before they look into buying a vehicle.

Getting Financing for a Car

The first step in shopping for a new car is getting financing.  Most car dealers will offer customers finance.  However, it is important to look at other options before committing to a finance company.  Banks generally have lower fees and interest rates than finance companies.  In fact, the finance companies used by car dealerships often have the highest rates on the market.  It is worth noting that most lenders will not pay out a loan unless the new car is insured.

Getting Insurance for a Vehicle

Most buyers think about insurance after they have purchased a car.  This is a mistake as the make and model of the car will have a direct impact on the annual cost of its insurance.  Generally, "safe" models have a cheaper insurance policy.  Insurers determine which cars are safe by finding out how many accidents specific makes and models get involved in every year.

The age and experience of the driver will also influence the cost of the policy.  For example, a young driver driving a high risk car will have a high premium and deductible.  If the car is very expensive or extremely high-risk, regular insurers may decline to insure it altogether.  This will force buyers to go to a specialty insurer.  In some cases, the insurer will charge thousands of dollars a year.

Choosing the Right Car

The best car for consumers will be a vehicle that has the required functionality.  Those who want to drive on paved roads on a regular basis may be happy with a simple sedan.  Buyers that need off-road capabilities will need to purchase an ATV or SUV.  Parents will also have to ensure that the vehicle has enough room for their children and their car seats.

Does Brand Matter?

Certain brands have a high status on the vehicle market.  Some consumers are drawn to these brands because of their image, style or vehicle functionality.  Consumers need to figure out whether or not they are willing to pay extra for a vehicle from a high-end manufacturer.

Consumers should be aware that cars made in other countries may be difficult to repair.  An example of this would be the BMW.  If a BMW owner needs repairs, the auto shop may have to order parts from overseas.  This will inflate the cost of the repairs and lengthen the amount of time the mechanic needs to fix the vehicle.

The best way to select a vehicle is to go to several car yards and look at suitable options.  Buyers may also want to go to a few car auctions.  Those who shop around are bound to get a good deal on cars, finance and insurance.  If the buyer does not know much about cars, he or she should bring a friend with them.  Having someone who knows what to look for in a vehicle will prevent the buyer from picking a car that needs repairs or maintenance.

Featured images:
  •  License: Royalty Free or iStock source: http://www.depositphotos.com
  •  License: Royalty Free or iStock source: http://www.depositphotos.com
  •  License: Royalty Free or iStock source: http://www.depositphotos.com

Rebbecca Jones is a freelance writer who specializes in finance, the automotive industry and travel.

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