There are few things that can compare with the thrill of buying a car of your own for the first time. It means freedom, independence, and the chance to get a set of wheels that is an expression of your personality. Given it’s such a big financial decision, you will want to make sure that you find the perfect car for your needs and that you pay the right price for it.
Ernest North, co-founder at the fully digital insurance platform, Naked, offers some tips about how you can pick the right car and make sure you get a good deal.
Start with why and how much
Before you go any further, think about why you need a car, what you want from it, and how much you can afford to spend. Do you need a small, fun car mostly for the weekends? Do you need something more comfortable because you have a long commute to work? Or, do you need space for a lot of friends and family? Some questions you can ask yourself:
· Is the snazzy car that will impress your friends worth the financial stress?
· Can you share a car with your partner?
· What will you be doing with your car? Buying a 4×4 just for the occasional trip into the bush may not be worth
it.
· How much money can you spend? Remember to consider all costs associated with owning a car. This includes fuel,
insurance and maintenance, in addition to the upfront cost (if paying cash) or monthly repayment.
Get online and do your research
Once you’ve decided what category of car you want to buy and have a budget, you can start your research into makes and models. You don’t need to spend lots of time visiting different dealerships, you can simply browse through car brand websites and secondhand marketplaces like WeBuyCars or AutoTrader to find out what’s available as well as what you could expect to pay.
Online, you can easily compare car specs, and read online reviews from customers and car journalists that can help you get a picture of the pros and cons of different cars. You can also compare prices yourself to make sure that you’ll pay a fair price for the vehicle that caught your eye.
Check it out in real life
After lots of internet research, you might boil your list down to a specific make and model. When you see a good deal for the car of your choice, it’s a good idea to head down to the dealer to see it in real life. Most dealerships will allow you to book a test drive online and many will even bring the car to you. Take the opportunity to see if you find the seats comfortable, if there’s enough boot space, and if you like how the car handles.
A pro tip is that you don’t necessarily need to buy from where you test drive. If you like what you see, you can then buy the car online just like you would buy your new laptop. You can compare prices of cars online yourself and find the best deal possible. You can even order your car from a dealer in another part of the country and get it delivered to your home.
If you’re looking at a used car, remember to ask questions around the service history, the dates of warranty and what the possible costs of extending the warranty is.
Get insured online with a couple of clicks
If you’re financing the car, you’ll need to buy comprehensive insurance for it before you can drive off in your new wheels. Dealerships often have partners that offer insurance, or you can get cover through the finance house you’re getting a car loan from. This might, however, not be the best premium pricing for your needs.You should also explore your own options for insurance – shop around and get a few quotes to find the best policy for your needs and budget.
By using a digital platform like Naked, you can buy insurance on an app within a couple of minutes, while you’re in the dealership. You’ll also be able to immediately download proof of your insurance from the app to give to the dealership. Remember to consider shortfall cover if you took out a car loan and didn’t pay a deposit. Shortfall cover will protect you if the amount you still owe is higher than the amount your car is insured for.