Are You Ready to Buy a Car? Answer These 3 Questions First

Man buying a car

Buying a car is not like buying a house, although there may be some similarities like being able to buy it through a loan. A house has a better chance of paying for itself in the long-term. A car, on the other hand, depreciates.

Like buying a house, you should never buy a car without ample preparation. Here are some questions you should answer before making that purchase:

How are you with finances?

Do you find it difficult to keep up with rent payments? Is the cable bill becoming a problem? If these are issues for you, you will definitely have trouble keeping up with car notes. It’s not a requirement for you to be completely debt-free, but you should be realistic about how good you are with payments, savings, and other expenses. You can find a bad credit car loan, but you will be paying higher than average interest rates. A high credit score can get you the lowest interest rates possible.

Have you considered used vehicles?

If you must have only one reason to consider used cars for sale in Raleigh over brand-new vehicles, that’s the considerable savings you’ll enjoy. Buying a brand-new car may give you more bragging rights, but consider the average depreciation of a new vehicle. Over the first two years of ownership, you might find your car losing up to 40% of its original sale value. Most experts will suggest buying a reliable two-year-old car and driving it to the ground, which is likely to get you your money’s worth and then some.

You can buy a car, but can you own it?

The cost of buying a car is not the same as the cost of owning it. When you buy it, you only have to deal with the price tag. Owning it, however, means dealing with insurance, maintenance, and fuel. There may be other costs too, like paid parking where you live or work. Consider all of these expenses and whether you have more than enough to cover them.

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The above-mentioned points aren’t meant to discourage you from buying a car. Rather, it is meant to encourage you to prepare for that purchase. The earlier you get ready for it, the sooner you’ll be able to manage it.