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Buying a car can be potentially confusing especially for first time buyers. Plan
your first purchase and put it down in writing to ensure you have thought out the
process properly. Very often you may be confused or swayed because you canít remember
what your car dealers have told you or what you have decided.
The very first thing you should ask yourself is ìDo I really need a car?î or ìis
it the right time to buy a car?î. There is a distinction between ìneedî and ìwantî.
This should be the first consideration. You may need the car if frequent traveling
is part of your job routine and public transportation is not so convenient.
What is the opportunity cost if you decide to get a car? For example, the RM60,000
you spent on the car could be used to pay off your debts, invest in the blue chips
at bargain prices or set aside as emergency funds. Which one is more important?
During difficult periods, you are likely to abandon the plan if you have no real
need or use for a car. There could be lots of better alternatives which the extra
cash can be put to use. Do not just buy because your neighbour acquired one a couple
of weeks ago.
At the initial stage, your study should be without regard to any specific model.
Firstly, find out what sort of features that you want in your car. Look at the style,
capacity, safety features of the car and not forgetting the most important factor-
the cost. The more luxury options you add to the car, the higher the price.
If shopping for used cars, you need twice the amount of homework. Besides the normal
questions you need to ask yourself :- Are you buying the car from reliable sources.
You do not want to end up with a stolen car. Has the car been well maintained? Has
it had any major accidents that could cause problems later on.
Are brand names important? Do you want a sports car or a four-wheel drive? Do you
emphasize sporty appearance at the expense of safety or the price tag? All these
are questions only you can answer. Note down all the factors and run through all
the details at least twice.
You may seek opinions from dealers but do not be swayed by them. If you let the lady
dealer to sweet talk you into getting more than what you need, you are likely to
end up buying a car at a price they want to sell rather than the ìrealî car that
you wish to buy.
In other words, you are not getting the car you want at the price you are willing
to pay. Since remembering all the details on your factsheet is difficult, you can
take the sheet with you when approaching car dealers. This can make sure that you
will not deviate from what you want originally.
How do you determine the cost? What is your budget? How much do you think you
want to spend on the car? You need to work out the quantum of monthly payment taking
into account the interest charges. Whenever possible, factor in calculations such
as petrol consumption, insurance, maintenance and repair cost. Check also for financing
and other service charges. Compare rates offered through banks.
You could save some money if you are buying a used car directly from the owner rather
than through a dealer. Remember that dealers charge a commission for their living.
Their prices are always marked up to cover overhead expenses.
If possible it is always better to purchase a used car from an individual you know
and trust. They are more likely to charge lower price and usually willing to point
out any problem associated with the car.
Having decided that you adequately need a car and can afford one at this stage,
you are now ready to get the car that you want - one that matches your requirements
and price. Browse through car catalogs and look for the model that best fit your
criteria.
If it is a used car you want, local newspapers provide an excellent source of information.
Scan the classifieds carefully to get the broader picture about the current market
prices. Talk to friends who have experienced the trauma of buying a used or new car.
They may be able to provide you some valuable tips.
Do not be rushed into buying. Do not fall for "hard-sell" techniques. Call
at least five to six dealers for price quotes. While the retail prices of new cars
are relatively fixed, negotiate for the best deal if buying a used car. Compare the
seller's price with the average market price.
It is important that you test drive your new car to ensure you are fully comfortable
with it. If you are not sure, go with a friend who is more experience in dealing
with cars. If it is a used car, have a mechanic to check out the vehicle before you
make any commitment.
With proper research, you could save thousands of Ringgit by selecting a model that
combines a low purchase price and features that you want. By following some simple
guidelines discussed and with some common sense, chances are you will get a good
deal - a quality vehicle at a price you can afford.
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