Owning a car is a dream for almost all of us. Mine too. But when you buy your first car what is that you consider as important. Most of us go for the features of the car, others go for the looks and imagine oneself sitting inside it taking a lavish ride. I don’t think these are important areas to consider when choosing your first car.
1. SERVICE AVAILABILITY
When I chose my first car the first thing I considered was will I get service if my car breaks down anywhere. Most of the time first cars are owned when you a new driver. Therefore it is important to check for a dealer or company that provides you the best service. Say, in case of a Tyre puncture or any other similar thing being able to reach back home is important.
2. COST OF MAINTENANCE
When you are a new driver or sometimes even otherwise the maintenance is a key thing while buying a car. We need to understand that a vehicle will depreciate to zero value in maximum 5 years time. Means, a car can be ‘fit to use’ and ‘fit to resale’ only up to 5 years time. The reasons could be fast change in the technology, different looks to the same car etc. Maintenance cost is a major cost in owning a car.
3. YOUR FINANCIAL POSITION
Can you own a BMW when you earn a salary say Rs.6.5 LPA. Well, out of reach right? Same way then why do you want to own a car costing Rs. 10 lakhs when your salary is only Rs.6.5 LPA. Many of us do not realize how much we need to budget for our car. Later we regret while paying the EMI. Your EMI should not exceed 15% of your monthly income. Because remember a car is not a appreciable asset. At the end of the loan you won’t be gaining by owning the asset unlike having a apartment. Be careful
4. VALUE FOR MONEY
Check if you can get a better featured car for the same amount. Or for a marginally higher amount with some better features. Let me put it in simple words, say your car budget is Rs 5 lakhs and by paying Rs 50K more you get a benefit of a car which costs you Rs 6 lakhs then go for it. Initially you might find it difficult to fund the 50K but in the long term you get a better car so you save on maintenance and get better benefits.
When you are a new driver do you not make use on many features in the car. The reasons could be you are not so experienced to manage, you are not aware, you tend to focus more on the roads. If so , do not go for a car with many features. Just having the feature and not using it will only make a wrong financial decision and nothing else. Because I do not believe in owning something just to show the rest of the people around you that you have it.
6. COLOUR OF THE CAR
Always remember to go in for a colour which can be easily re-sellable. Rare colours, fancy colours do not attract a lot of customers and therefore it becomes difficult to sell them. Go in for soft, modest and simple colours. They are easy to handle and easy to resell.