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Since purchasing a car is a major long-term investment for first time buyers, they should consider the following factors before deciding which car to buy.
New or old? Deciding whether to buy an old or a new car depends on knowing exactly why you are buying it. If you will use it mainly to get to work and back, then a used yet well-maintained car may be a good choice. However, if the entire family will use it for different purposes, then the reliability of a new car will offset its higher cost.
Owning or financing? First time buyers usually lack the capital to purchase a new car up-front, and have to commit to a five to seven year loan. Talk to multiple banks to get the best deal, read the fine print to understand your financial obligations, and ask a lawyer to vet the loan papers. Job security and a stable disposable income are important factors to consider if you choose to take on a long-term loan.
Aesthetics or functionality? If you plan to keep a vehicle for less than five years, look for models offering low mileage and high resale value. You should also calculate the extra cost of the add-ons and evaluate whether the additional expenditure will provide actual and not just aesthetic upgrades. Deciding the fuel specs is a crucial decision as well; petrol may be expensive, but wasting time in long CNG queues is also a hassle. Continue reading