Buying a new vehicle is not an easy experience, especially if you don’t know a lot about cars. It’s a complex world with a variety of choices and opportunities, and our friends and colleagues are always there to advise us, which can often complicate the situation further.
That said, buying a new vehicle and most importantly, finding the best vehicle for us is quite simple if we take the time to understand our needs, calculate our budget and find the right financing option.
It is thus necessary to avoid the following three mistakes.
Not properly planning our budget
Often, we tend to only look at the monthly payment when we are shopping for our next vehicle. Having said that, there are a wide range of additional expenses that come with owning a vehicle. You have to take into account gas, maintenance, registration fees, insurance, parking, tires, etc.
These expenses can easily add several hundred dollars to your monthly car budget, so this must be taken into account. Ultimately, be sure to add a good $ 300 to your monthly budget to make sure you’re ready for any financial surprises that come with your vehicle.
Not anticipating how our needs can change
Maybe this sports car suits us today, but if you start a family in a few years it may not be able to meet your needs. But changing vehicles after a few years is never a wise financial decision. We must therefore take the time to analyze how our needs will change over time and ensure that we choose a vehicle that will be able to respond to them.
Leasing a vehicle when we should have bought it
Leasing can be very tempting at first, because it is more affordable. That said, it also comes with a mileage restriction. So, if you drive thousands of miles a year, say over 24,000 kilometers, it is better to buy the vehicle immediately than to pay the penalty at the end of the lease.
Thank you to Halton Honda for their help with this article.