If it’s your first time buying a car, here are some tips that you might want to consider.
DO YOUR RESEARCH
It’s important to know what you’re getting into when buying a car. As with any purchase, you need to know what you really want to get the best deal.
On the financial side, you should consider your budget. Is this transaction within your financial means? Also, ask the seller if they have any financing and purchasing options. Remember that buying a car is an investment and the car loses its value over time.
Reading reviews from car enthusiasts can also help you decide. For example, established sites like Top Gear Philippines can provide insights on the car that you want. Learn about about the car’s safety features like airbags, ABS (anti-lock break system), and restart assist to name a few.
Ask yourself, what do you really want? If you are working from home most of the time or don’t travel that much, do you really need a car? After all considerations, it is you who will make the choice.
GET YOUR LICENSE FIRST
Part of getting a driver’s license is the examination, therefore, having your license is a better option when buying a car because you’ll be familiar with the road signs and traffic rules. A grasp on the meaning of road signs and traffic rules would make you a better driver in the long run.
The Land Transportation Office lists the following requirements when buying a car. Visit their site for more information.
CHECKLIST OF REQUIREMENTS:
- Duly accomplished Application Form for Driver’s License (ADL)
- Presentation of copy of the medical certificate. (Electronically transmitted to LTO by the accredited medical clinic)
- Original copy of valid Student-Driver’s Permit
- For applicants aged 17 years old, one (1) original copy of parent’s consent or affidavit of a person having custody/care or supervision over the minor applicant authorizing the applicant to secure a student permit with presentation of original and submission of one (1) photocopy of any valid government issued ID of the parent/affiant with photo and signature
THE TOTAL COST OF OWNERSHIP
According to Investopedia.com, the Total Cost of Ownership is “the purchase price of an asset plus the costs of operation.” It is important for you to take the TOC into account because owning a car is a long-term investment.
Think about the costs of maintenance and insurance. Also check the fuel economy (distance traveled per unit of fuel) of a car. The more miles/kilometers per gallon/liter a car gets, the farther it can go on a tank of gas and the better its fuel economy. (Check the prevailing retail pump prices here.)
CONSIDER GETTING A SECOND-HAND CAR
There are two reasons why you might want to consider buying a second-hand car.
The first reason is that a second-hand car is cheaper. You can get one that starts at ₱250,000 compared to a brand new car. There are a lot of sellers of second-hand cars that you could check online.
Second, you can practice with it to your heart’s content especially if you are a new driver. Also, it’s better to get used to driving first before buying your first brand new car.
Repossessed cars are those that have been taken back by the auto lender (like banks) because the buyer has failed to hold up their end of the bargain, i.e. paid their dues, and then sold at an auction. Most repossessed cars are in great shape and are fairly new so you might want to consider them, too.
TEST DRIVE BEFORE BUYING A CAR
Don’t forget to test drive the car before buying it in order to notice if there are problems. Take note of all the issues and inform the seller when you are negotiating for the price. Bring your own trusted and well-experienced mechanic to guide you. Safety first!
Also, you might want to test drive several cars before making your decision. You’d be surprised to know that your first choice might not be the best option.
Most sellers or dealerships allow you to test drive the car. This works to the advantage of both buyer and seller.
In the end, the choice is still up to you but bear in mind these simple tips. Don’t rush and consider all the options because in the end buying a car is still an investment.
Thanks for pointing out that the fuel economy of the car is also an important thing to look into when planning to buy auto insurance. I want to insure my car soon because I will be traveling a lot more often starting next month. As such, I want to make sure that all the protection that my car will need is accounted for.