Throughout my life, there have always been a couple of “dream” cars that I want to buy. Although I could use the hints and tips I am about to tell you in this guide to buy them, they are sadly not very practical for my purposes.
If your dream car is more realistic in that you would drive it every day but you think it is going to be out of your reach price-wise, I am here today to tell you that it’s not! Want to find out how? Continue reading to learn more!
Don’t buy new
You will doubtless of heard people telling you to buy used cars instead of new ones. But have you ever wondered why? The answer is simple: because they are cheaper!
Regardless of whether the car you want to buy is an Audi R8, like the one in the photograph above, or a more-modest Ford Fiesta, all brand new cars depreciate.
For some cars, depreciation is a lot worse than others, but you can typically expect a brand new car to lose 20% of its value within the first 12 months, and around 40% to 50% of its “new” value after 3 years of ownership.
For those reasons, I recommend that your dream car purchase be no newer than 2 years old. That way you still get to benefit from having some of the manufacturer’s warranty in place, but it’s old enough not to cost such a huge amount of money.
Lease not buy
The second mistake that a lot of people make is that they think buying a car outright, either with cash or via a hire purchase plan, is a much better idea than leasing it. Having personally bought various cars outright over the years and leased others, I can tell you that leasing is a wiser choice:
- Lower total cost of ownership – if you lease a car for a period of 3 years or so, your overall total cost of ownership will be significantly lower than it would had you bought the car outright;
- Maintenance – one of the main reasons why your total cost of ownership would be lower with a leased car is because you are less likely to have to pay for expensive repair bills as you would with older cars or those with higher-than average mileage;
- You can hand the car back – sometimes it can be a real pain selling a car that you no longer need, but with leasing all you have to do is hand the car back to the dealer when the term ends.
Shop around for insurance
Some people find that they can afford to buy the car of their dreams, but they can’t afford to insure it! But did you know that most of those people could afford insurance; they were just looking for it in the wrong places!
One of the things that the folks over at tilsungroup.com advises people to do before they buy a car is to shop around for their insurance first, and take advantage of any discounts by signing up to be part of an owner’s club.
Image credit: thecarspy on Flickr.