Have you invested in a family car? If yes, what are your major considerations and the things you did before buying your car a family (and share them in the comments section below)?
If not, then this one is for you.
In a previous post, we shared six things to remember before you buy a car for your family. This is because aside from earning more by working as an OFW, buying a car is one of the major purchases you will make as a product of your hard work and sacrifices to provide a better life and brighter future for your family.
Apparently, buying a car is not a walk in the park. There are many things you need to consider to make sure you land a good deal and get the car that is most suitable to your family. This is why you need to avoid these mistakes to make sure you get the right car for you:
1) Not doing sufficient research
This is in terms of buying the right car to finding the best lender to help you finance your purchase. In fact, not doing enough research in general is the worst mistake you could do when making purchases.
Keep in mind that there are tons of vehicles available that comes in different sizes and features. Know what you want for your family car and then maximize the World Wide Web to find out the type of car that will suit your needs. Take some time to read and watch car reviews to help you decide.
Apart from the car itself, you also have to do enough research about lenders, especially if you plan to take out a car loan. There are tons of lenders out there that offers competitive rates and features to entice buyers like you to obtain a loan from there. Shop around and compare before you say yes.
2) Unsure of the type of car you want to purchase
Research is imperative when buying a car. This is why it is strongly advisable to determine your needs and identify the features you want for your car to maximize its use while staying on budget. You also need to decide whether to purchase a brand-new car or previously-owned vehicle.
Don’t join the bandwagon. Just because Toyota Fortuner is selling like hotcakes, it doesn’t mean you should buy one. Look around and identify what your family needs to help you decide.
3) Not setting a budget
“May car loan naman, eh.”
Lenders may give special treatment to OFWs, but this doesn’t mean you should rely on them at all times, especially for major purchases like car. Aside from the features that will suit your family’s needs, you also need to set a budget for this type of purchase. Set the amount and make sure you’ll stick to it.
Keep in mind that working overseas is not forever. Think long-term and make sure you have sufficient funds to cover for the monthly amortization even if you are no longer working abroad.
4) Focusing on the car itself
It’s not enough that you identified the features you want for your family car. You also need to consider the car’s mileage and cost of repair (if you’re buying a second-hand car) and maintenance costs. Parking space is another important consideration you need to remember, so make sure your car has a space in your home (and not in the streets). If you’ll avail of financing, take note of the interest rate and term of loan to help you adjust your budget.
In other words, take a holistic approach instead on focusing on one aspect only.
4) Impulse buying
Would you believe that buying the perfect car is also about perfect timing?
This is why it is important to shop around and explore your options first instead of buying a car according to impulse. Car is a major purchase and requires proper planning. Otherwise, you might find yourself buried in debt and your car taken away from you because you are unable to pay on time – and you don’t want that to happen.
5) Not reading the contract’s fine print
Lenders, especially loan sharks can be sneaky. They could put catchy terms in the front page and unfavorable conditions at the back against you.
Before you sign any document, make sure to read everything, no matter how small the print is. Don’t be afraid to ask questions and clarify terms unclear to you. You need to protect your interest too and you can do so by reading the terms of the contract.
6) Not consulting the rest of the family
It’s a family car, which means it is intended for everyone. In buying a car, make sure you consult your family and ask them about their opinion as well. Don’t buy a car with manual transmission if your spouse cannot drive one. Buying a sedan is also not advisable if you have six kids since everyone won’t fit in.
At the end of the day, the car is for your family. Keep them in mind and what will be more comfortable to everyone else to make the most out of your purchase.