Buy car

Buying a car is the first most expensive investment you will make after you start earning. It is a stressful process if you do not do your homework and plan things in advance. Selecting the right car is very subjective. There are several emotional, practical, and aesthetical points out that you have to keep in mind.  Some of us buy a car to commute to work and travel places whereas some of us buy a car to maintain high social status. It’s smart to select a vehicle that is part stylish and part efficient. You have endless choices when it comes to choosing the right car for you and family. So, its better you choose a vehicle that strikes the perfect balance between wants and needs.

If you are saving a few thousand bucks for a new car, having a proper plan can keep you disciplined and on schedule if unexpected expenses pop up. Keep collecting more and more money so that your finances stay in order. Or you can create a financial plan with detailed steps that can bring your dream car to life.

Follow these steps before purchasing your dream car-

Know your budget

Re-evaluate your finances and find out how much you can provide as a monthly payment if you plan to take a loan to help pay for the car. After reviewing your budget, use an online calculator to estimate which car you can afford. Always stick to the lower end of what fits comfortably into your budget. This will avoid problems that may come up while repaying your loan.

Calculate other miscellaneous costs of owning a vehicle-

Owning a car is fun and exciting. But, always keep in mind that you will be spending more than just the monthly instalments. The maintenance cost, fuel cost, insurance premium, registration cost, and many more additional expenses add up to your monthly spending. It’s necessary to choose a car that offers better mileage and saves your money. Also, don’t forget to figure out the cost of other state and local fees.

Check your credit score-

If you want to get a car loan, you need to know about your credit rating. A good credit score is beneficial and plays a vital role if you’re going to take a loan. Any errors on your credit report can have an ill effect on your ability to borrow at a lower rate. In case you find errors, contact the credit bureaus to correct them before applying for a loan.

Do some research-

To get a better deal, you need to have detailed knowledge of the market. Before you visit dealerships, try to reach out to your bank. Dealers’ show that they have great financing deals, but often those deals mean you actually end up paying more for the car. Before you visit dealerships, try to get a car loan so that you can negotiate the price of your car. For additional discounts and incentives, you can check the manufacturer’s website.

Negotiate a better price and pick the right financing

Never forget to compare prices before you make the final decision. Get a car quote online from a number of dealers in your area so that you can get the best deal. You can also finance your car by taking a personal loan or by using your credit card’s EMI option. Always remember, if you opt for a longer-term loan, then you’ll end up paying more for your vehicle in the long run.

Now that you know have a detailed plan on how to purchase a car without getting financially broke, you should consider insuring it with a comprehensive car insurance policy. According to new laws in India, it is mandatory to have a car insurance policy. Be a law-abiding citizen, buy Reliance Car Insurance now.