When thinking of buying a vehicle, ask yourself: are you prepared? There are things you need to do. Not only to get a great deal but also to prevent headaches down the line. Before you even reach the test driving stage, take the time to scout around for hassle-free deals. Many things have crossed your mind – the nice feel, aroma, and how your dream car would grip the road well. And, of course, the many trips you will be taking with the sleek vehicle.
Essential Things to Consider Before Purchasing Your Own Car
Now if you are ready for the spirited blast of a new car, you need to be ready as well for the main expenses. This also includes the fuel costs and maintenance. Aside from that, this also includes depreciation or representing the loss in value of the car over its useful life. Not to mention emission tests and many other auto-related expenses. You also need to search for a reputable insurance provider.
Insurance premiums can be obtained at a lower cost if the would-be car owner purchases the coverage on his own. Look around for discounts for bundling. For the average earning individual, they decide to buy a car using bank financing or even personal savings. The monthly payments also need to be factored in before proceeding with the purchase. Indeed, in order to save money, a regular car buyer needs to allow ample time to check out prices, specifications, and deals for your chosen automotive segment.
If you are bent on getting a sports utility vehicle, for example, owing mainly to its reasonable running cost and family-friendly practicality, you may want to check out if it is powered by an engine designed for increased fuel efficiency. Consider also your family size. If you just got married and still planning to have kids, then a sedan may be a more practical choice for the moment.
Financing a New Set of Wheels
To be really prepared to follow through with a car purchase, listen to your inner self when it says “Show me the money.” How does one come up with the funds? Not only for the initial cost of the car but also the motor vehicle inspection test, registration, accessories, repairs, fuel, and other expenses?
Lots of Filipino car buyers falling in the low- to middle-income classes will immediately think of “auto loan.” If that has been granted by a bank, the new car owner will not have to pay the full price upfront. Most auto loans necessitate putting down a big downpayment early into the term, though, to be followed by lower monthly payments.
Individual car buyers who want to make sure they will not have a shortfall of funds consider a personal loan. When it comes to using a personal loan to buy a car, the borrower does not have to carry full coverage auto insurance which is required when getting a traditional auto loan. A personal loan may also be used merely to supplement the added expenses that go with a new car purchase.
These days, personal loans are obtained in different ways. Commercial banks and lending agencies offer personal loans. Approval for an unsecured personal loan obtained via a peer-to-peer (P2P) lending platform is determined on the basis of the borrower’s credit status and related criteria.
How does applying for a personal loan from a bank differ from a personal loan from a P2P funding platform? Consider this scenario: One of the growing ASEAN banks in the Philippines offers personal loans of up to a million in loanable amounts, and flexible payment terms of up to 36 months.
The same things are offered by a P2P funding platform like Blend.ph, the interest rate per month may vary slightly, but the borrower may expect much quicker processing time. Because a P2P platform does not have the same infrastructure as a bank and does away with customer-facing personnel, it can offer low-interest rates at a wide range of options.
Planning to buy a much older vehicle instead of the latest model of a classy car? Getting a personal loan may be a wise move. Before making that final car-buying decision, think before you dive into a deal and have sufficient funds at hand. You not only do away with a lot of haggling, but you can also allow some of your available funds for the necessary items you can tick off your list.
Aside from being a businessman, Josh Austria has been working in PR and media industry for more more than a decade. From his years of experience as the Marketing and Advertising Head of Village Pipol Magazine, he has built strong relationships with creative people, brands, and organizations.