By CAPosts 02 December, 2020 - 07:00pm 40 views
One of the dreams of young adults is to buy a car, which is often one of the first major investments in people's lives. It is very common that because it is the first time, some mistakes are made that can involve financial consequences for several years.
It is important that you be orderly with your finances so that you do not suffer unnecessary embezzlement when purchasing your first car.
With everything and a pandemic, cars are sold
Despite the fact that we are in a crisis scenario derived from the pandemic, sales of new cars have not stopped completely. According to data from the Mexican Association of Automotive Distributors , until the end of November, 95,485 new cars were sold throughout the national territory.
Among the best-selling brands are, Nissan with 20.5% of sales, followed by General Motors with 15.7%, Volkswagen Group with 13.2% and Toyota with 8.1%.
Business Insider Mexico spoke with experts to learn their recommendations when acquiring a new vehicle. These are some aspects that you should consider before going to a car dealer:
1. Before buying your first car, establish a budget
The first rule of personal finance is to establish a budget, which should give you a clearer idea of the amount that you can pay per month. It will always be much better to pay for things in cash; However, a car requires a strong investment and it is almost certain that you will need some type of financing.
That is why when making a budget to buy a new car, you should first consider the monthly expenses you already have, such as food , payment of services or rent. Once you have that calculation, the rest of your income could be used to pay for the car, gasoline and insurance.
2. Choose based on your needs and opportunities
Knowing which is the correct vehicle will depend, in addition to your inclination by the segment that you like, to identify which is the one that best suits your mobility needs and your budget
Consider aspects such as: performance, options with lower maintenance costs, if you plan to do adventures in it, travel as a family or you will only use it to go to university or work. Do not forget that your budget for payments should allow you not to commit to other fixed expenses that you may have.
3. Consider it an opportunity to start your credit history
Take advantage of the opportunity that acquiring your first vehicle offers you to be able to start a credit history. Keep your payments in order and your rating always positive. This will be useful so that you can later apply for loans in other sectors, such as housing or banking.
4. Choose a good support
If you are still a student, choose one of your parents as joint owner of the loan. Although it is in your name, having their support and financial strength can give you greater confidence and add more points at the time of requesting the operation.
5. Evaluate different financing schemes
That despair does not win you. Evaluate in detail which is the financing scheme that best suits your possibilities. Currently, there are multiple options with different benefits.
In any of the cases, if it is within your means, consider that making a good initial payment - perhaps, with your savings - will help you make the rest of the payments more accessible.
It is important that you bear in mind that the less you pay monthly, the rate and the time of your loan will increase.
6. Insure your vehicle
Avoid financial damages in any eventuality . Take advantage of the different offers that promise up to one year of free insurance, when you get your vehicle.
Remember that insurance not only implies protection against accidents, but also against possible repairs or eventualities that are not always foreseen and that, when they happen, can affect your pocket. If you are a student, consider insurance that can also cover your education expenses in the event of an eventuality or unforeseen event.
Finally, it is important that if you decide to buy from a private person, you make sure that the seller is serious. To learn more about how to avoid being deceived, be sure to read the 5 things you should look for before buying a car and not end up scammed .
Would you like to share any of your experiences buying a car? Write to us at email@example.com
NOW READ: Financing, leasing or cash, which model is best for you when buying a car
ALSO READ: 4 qualities of people who are good with money and that anyone can adopt, as professional personal finance