6 Factors To Consider Before Buying A Car In Singapore
A car is among some of biggest financial investments one can make in life. In the past, personal cars were only preserved for the rich. It was regarded as a status symbol that others only aspired to have. However, things have completely changed over the past few decades as more brands have come into market increasing competition hence lowering the prices of most cars. The competitive car market has also made the buying, maintaining, repairing, and even selling quite straightforward unlike in the past where it was hard to find car parts or mechanics with the relevant skills.
Owning a car in Singapore in this modern-day world has become a basic need particularly for working class individuals. Sometimes buying a car can lead to significant financial implications if you do not put enough thought to it. Whether you’re wealthy or not, a car is a big asset that only depreciates instead on appreciating. There also exists other hidden expenses like maintenance costs, annual road tax, fuel, and insurance premiums to be paid. It is therefore imperative that you pay attention to these six factors before heading to the dealer.
Establish your budget
First time car owners tend to splurge or are tempted to purchase the high-end machines. Millennials are most affected as they want to showcase it to their peers, family, or the world in general. If you don’t have a planned budget, it is easy to fall into the trap of buying a big car which you may only end up selling when you can’t keep up with the maintenance costs.
Huge luxurious cars do not just command high fees, but also demand expensive insurance premiums and costly servicing every once in a while. Don’t forget that they’re guzzlers—they consume high amounts of fuel at once. Keep in mind that a car should make your life easier and manageable, not a commodity that weighs you down financially.
From the above points, a budget will help you keep your pockets in shape. If you’re not buying using a bank loan, consider creating a budget while including all the costs such as the monthly fuel consumption, the price, model of the car, service, and insurance bearing in mind the hiked fuel prices in Singapore.
Since there are multiple models in Singapore, the wise way to go about it is do some background research. The essence of research is to help you find a ride that is averagely priced and low on maintenance based on your budget, readily available, inexpensive spare parts, and a reliable car. The research will also enable you spot various features and weigh them based on importance and vulnerability. The pros and cons will also play a significant role towards helping you establish whether the car you want to buy is worth it or you can simply wait a little longer to get enough money for the right model.
If you’re looking for a family car, you may want to get the most out of your hard-earned savings by getting a car that is spacious, comfortable, with entertainment features and enough storage for your family’s belongings. Some good research can go a long way into helping you establish a great family investment.
New vs. used vehicle
Another unique factor to consider is whether you are looking to buy a new, certified pre-owned or pre-owned vehicle. In most occurrences, buyers prefer new cars compared to used cars. While new cars seem to be the ultimate choice, you may find yourself going home with a refurbished vehicle, leaving behind a great machine at a discounted price. In truth, new cars are expensive and tend to depreciate faster than certified pre-owned cars—cars that have undergone stringent inspection, validation, and evaluation. If you have a way with cars, maintaining them may not be a problem, and therefore a new vehicle can be a great choice. As for new buyers, used cars may be more appealing as everything has already been done for them. If the car has any minor or major issues, you will get notified before buying it, unlike new cars where the buyer is unaware of any problematic features of the car till test drive.
Inspection and test drive
If you are buying a second-hand car, inspection is vital, but if you’re purchasing a new one, then a test drive is crucial. Before signing on those dotted lines, pay utmost attention to the small details like the brakes, the steering, and the sound of the engine. If you’re getting a car that is pre-owned, visit the best workshop or look for a reliable mechanic to help you inspect it.
The use of the car
All right, we all know that a car helps us navigate from one place to another. However, other uses cannot be ignored. For instance, if you are a sportsperson, you may want to look for a sporting vehicle. If you are a travel enthusiast, you may also need to look for a machine that can drive through forests or one that does not have problems using rough roads or muddy areas. In simple terms, there are cars for every activity; you just need to search for the best one that best fits the purpose.
Loans and payment terms
Just like household shopping, you should look for offers and promotions or dealerships that have the best deals. Alternatively, you can wait for seasonal sales where there are giveaways to ensure you get the best from your money. Singapore markets tend to be generous when it comes to sweet deals.
You may just hit the right jackpot by buying a car at the right time. If you are purchasing your car, the bank way, you can visit various banks to view their interest rates and service fees. Some banks offer favorable conditions while others provide low-interest rates. It is up to you to decide what really works best for you. An extended loan term or little installment may not always be the best choice as you will end up paying more interest compared to a short tenure.