Cars eventually die and require replacement. Those seeking something completely different to drive will compare vehicles. First, ensure that you’re aware of what your credit rating is. Making smart decisions throughout the entire selection and buying process is inarguably crucial! There may be similar cars that you can purchase that is budget friendly. That’s why we’re here. 0800723340 This is because the second hand cars may not have their manufacturer presence in the country. Many buyers qualify for rebates. Various studies have found that 80% of car buyers make use of the Internet to research about vehicles. Likewise, don’t purchase a new Lexus model just because you can eventually afford it if you obtain a 5-year loan. In your case, it might take less or even more than that. All these different brands have different sub-categories of cars under them making it a wider field to choose from. Wait, there’s the bad news. Such include styling, color, reliability, technology, fuel economy, comfort, capacity, and so on. Other factors considered include age, gender, common location of driving and your marital status. Will you have a surplus to sustain y… Purchase from a fair and cooperative dealer. This is perhaps the most factor to consider when buying a car especially the second hand cars. Take a look at your monthly commitment, and consider how much you can afford to pay for your car every month. A comprehehensive car insurance quote in Kenya can be as high as 5% of the value of the car, this works out at an average of KSh 40,000 per annum which is a hefty expense for any car owner. Taking these two factors into consideration, choosing a brand that is known to have a good resale value is the smart way to go forward. We wouldn’t advise you to walk into that dealership without such information. As well, the model, make, and kind of car you intend to insure will be accounted for. Instead, they keep some as extra profit. In such cases, you’ll need to establish the amount you can comfortably afford to pay every month. The budget should also including all the other fees that will come with owning a car such as registration, the cost of servicing or changing something about the car and insurance premiums among others. Still, there are remaining crucial steps to take before making any deal. Like anything else, have a budget in place to help you get that car. Any future home purchases. The Choice of a New Car: 5 factors to consider while buying a new car in India Jul 29, 2019 Jul 29 • Auto Mode Buying a new car is quite an event in India, especially for a middle class family. Different individuals will have different needs for a car. Even with rebates, discounts and negotiation, you will be paying top dollar. Insurers examine several factors to set insurance premiums. That’s not all. You won’t be required to do any of that stuff if you trade the car in. But, typically, they’re less likely to go down than up. You can purchase a fully loaded minivan for those big family vacations, a sleek new sports car, or a stripped-down compact for your new college graduate. Buying a car is for many, one of the biggest purchases they will ever make. That’s because the dealer assumes all the hassle associated with reselling the car. It is no lie that having a family is such a great thing, however, that means you need to consider the needs of your entire family. Also, they’ll consult ratings and make comparisons. We can’t guarantee that you’ll get the best deal on a car purchase. You can find excellent loan rates at some websites. Nearly 50% of all car buyers choose a new car based on their previous experience with another make or model. The fact is that most affluent car buyers seldom keep a new vehicle long enough to fully experience the long-term costs associated with sophisticated, high-tech vehicles. You should work out a budget and plan. Many car lovers want power but this will come at a cost, the big fancy machines like Land Cruiser V8 will be rated at 4700 cc and at 5.5 km per litre. A new car is at the very peak of its value. It refers the price the dealer pays the manufacturer for a car. There are a lot of things to consider when buying a new car, including safety, driving comfort and price. In honour of February, then, here are 10 things to think about as you prepare for and execute a new car buy: 1. We highly advise that you research the dealers. For obvious reasons, a good, clean record would be preferable to an insurer. image credit, Dodge. Maybe, you belong to an organization(s) that entitles you to additional rebates. This has however changed over the years with more and more car brands competing for sales hence bringing the cost of cars relatively low depending on the brand you want. Yes, one thing to consider is to purchase a family vehicle and that calls for a lot of factors to consider. While vehicles may play a part as wealth creators, they can also be wealth destroyers. But, people don’t purchase cars like they buy household items. You’ll relate your wants with various factors. In turn, that makes for a strong buyers’ market. Car dealers want to sell cars to stay in business. These, and many more, are just some of the fun features to consider when looking for a new family car. There are many things to consider before making your final choice about what vehicle to buy. In fact, they qualify for some rebates that aren’t even made public. Also, consider things like reconditioning, price negotiation, and ownership transfer. People don't buy cars like they buy microwave ovens. New cars cost more than used cars. These are the standard features which must be applied to all cars starts from 2017 imported or local made according to global NCAP till 2020. Maybe you intend to replace your old ride with a new one. Then, it’s time that you know how much the insurance will cost. If you do take the latter, then you also need to have a plan on how you will repay the loan which is actually a debt. Of course, you’ve neighbors, family, and friends all around you who’ve purchased cars. This sounds like a silly question to ask yourself before buying a car but it is an important one. It’s real. What this therefore means is that, if as you bought a car that is two or three years old, or even five, it will be much cheaper than buying the brand new version of it. Every car in each automaker’s lineup is accessible for your scrutiny. Worry not, though. Of course, that’s aside from a new home. A vehicle is a big investment so it’s important to do your research before you commit to a purchase. This post may contain affiliate links. Similarly, they’ll have different wants. Please refer to our Terms and conditions on this website. If you’re among that group, you probably need to go for a used Toyota rather than a new car. Pesabazaar.com is authorised and regulated by the Insurance Regulatory Authority of Kenya. Tips on buying a new car – Things to consider when choosing a new car It is only when you understand the purpose behind buying a car, that you will be able to choose the right type to be it an economy, family, luxury, sports, or an off-road vehicle. Everyone now wants the convenience that comes with having a car but getting one is not like picking a packet of milk from the supermarket. Owning a car in this day and age has become a necessity especially with a growing middle-class that has more disposable income. The dealer will know that you are expecting a good deal. In case your record features accidents and tickets, you’ll pay more. Also, consider the costs to insure the vehicle, which may be more than you anticipated. So, in case your credit is poor, be prepared to pay more each month. It nice to want the finer things in life, however, you have to select a car that is budget friendly. Are you in the process of buying a new car? Also, it’s the chance to see the cars up close and compare the different color choices available. Any car which fulfils your needs is perfect for you.For what purpose you require a car, how often you drive it, whether you need a smooth or rough car- you should consider these things before even looking for the car options. If it’s a just-launched/popular model, expect to pay full MSRP sticker. Try to book the car for 24 hours if you can so it's thoroughly tested. Considering the amount of money you’ve got to spend, you ought to be aware of the kind of cars which will satisfy your specific needs. Know why you want a car and research on the best one to fit that purpose. If you’re not aware, then you ought to find out. For example some are open to trade-ins just in case you are looking to up-grade from your old car. There is a thing called a perfect car. First, you ought to establish your budget before doing anything else. Good credit will enable you to access low-interest rates. The sky is quite seriously the limit. Now, you already know the car that’s right for you. While it can be a very exciting time, it’s important to not let the excitement get the better of you so that you make a potentially expensive mistake. Spending hours, days, and months researching reviews and comparing smartphones or laptops isn’t a cost-effective means to spend time, is it? Total costs of ownership add up quickly. Are you buying a new car? It is therefore very important to do your research on the brand of that you want. At this point, it’s time to visit various dealerships and conduct test drives. Consider them with a high degree of seriousness. Of course, we’re not talking about their name. On the other hand, there’s the Manufacturer’s Suggested Retail Price, often known as the ‘sticker’ price. They take an average of 4-6 months to make the decision about which make and model they’ll purchase. Try your best not to roll a balanced upside down loan into a new one only because you’re tired of the old car. This question can also help you make up your mind on if you really need a car or not because let’s be honest, a car will bring with it added monthly expenses so can you afford it? It’s thus time to do research to find the right car. It’s vital to define the differences between your needs and wants. Used car shoppers may be armed with a Kelly Blue Book or the Canadian Black Book to help determine a ball park figure, but it’s factors like mileage, wear … It’ll help you to plan the car financing options available better. It is a great step you are taking when you decide to purchase a car. You thus ought to obtain a new car for a price that’s closer to the invoice, rather than to the MSRP. There are other amounts to factor in here, as well. With so many different options out there, it can be challenging to make a decision. Why this question is important is because it will help you decide on the kind of car you want so that its serves its purpose well. We want to help lessen the complication involved. Also, put these guidelines into action. First, cars are known to be depreciating assets and second, they are bound to be upgraded in a few years. At the end of the day there are a few reasons to treat a new car purchase pretty seriously – not impulsively like I personally did in 2014. If you have five candidates on your list, test all five. Don’t walk into any dealership without having done research. We’ll inform you about all you’d require knowing before purchasing that car. For example, $400 a month for 48 months will buy you a $25,000 car, assuming a $3,000 trade in, a $4,000 down payment, and a low interest rate. Know the much you can spend on a car. Most cars these days will go 50,000 miles or better without any serious technical issues and many of the initial buyers will get out of them at about that point. Also, keep in mind that car payments fluctuate on a monthly basis. Having a budget will also help you narrow down to the kind (new or used) and brand of car that you want. There are always new technological and safety advancements being made in the car … It’s thus a wise thing to know all rebates which you qualify for. They’ll know that you mean business! On the contrary, you’ll pay high-interest rates if you’ve got poor credit. If you’re in the market for a new car, you may feel overwhelmed by all of the factors that you need to consider. We are still in the age of fuel and diesel cars of the combustion engine since its invention in 1876 by Nikolaus Otto. You may have saved for the car or you could consider taking a loan. Next, ensure that you’ve received them. But again, have fun while you’re reading and learning! But, the dealership will give you less money than what you’d get from a private buyer. Keep in mind that gas prices are highly volatile. Through research, you will also find out if the spare parts of the car you want are readily available or not. Through research you will also learn that it is important to have a car inspected before buying it and especially a used one to avoid buying junk in the name of car. What if you’re leasing or financing? #1 Buying a Car Will Affect Your Savings Rate. 1st Floor, Rhapta Heights, The second question you need to ask yourself is, do you want a brand new car or do you want a used car. You’re confident that it’ll fit your budget. When we talk about fuel, Maruti Suzuki might … Here, you’d be staking thousands of dollars. The driving record is a primary factor that determines how much you’ll pay. Most people cannot buy a car in cash and the best option is to borrow a loan. Research on the different pros and cons of different kinds of cars before you set out to buy that car. If it's more or less, so be it. People, in general, do not compare car insurance policy and base their buying decision based on the low premium cost. Prospective buyers should take more than one te… In turn, that promises long-term satisfaction with the purchase you’re about to make. Nairobi, Kenya In fact, that’s a reassuring sign that you will win the bet at hand. Therefore, you ought to select something which will meet your specific needs. Ensure to be realistic about the old car’s condition. They’ll do so immediately they realize that your sole focus is on payment. PESABAZAAR.com 6 Factors to consider while buying a new car insurance in India. If you do decide to buy a used car, again, do your research on to know what information you need before buying a used car. Buying a car will impact your ability to save. When looking for a new car, the world is your oyster. Strive to get an amount close to the average ‘book value’ from the dealership. Determine if the dealership beats your pre-approved rates. Important Factors to Consider When Buying a New Car. The availability of spare parts and servicing greatly influences the costs involved in running the car. That doesn’t also suggest that dealers will simply give the cars away. There are at least over 10 different brands of cars popular in Kenya and if you have been thinking of buying some new wheels then you have quite a variety to choose from. How much of your earnings will you allocate towards car payment? That nice red Range Rover you like may not be what you can afford. Another important factor that you must consider while buying a new or a used car is the fuel you are going for. First, cars are known to be depreciating assets and second, they are bound to be upgraded in a few years. Buyers should choose vehicles with features that meet their needs but avoid extra features are unnecessary. Rhapta Road Then, you should understand how the amount you’d afford each month translates into a car’s price. It’s less likely that you’ll just wake up and decide to purchase a new car, then walk into a showroom, swipe a debit or credit card, and drive away. But the definition of what makes a car perfect is different for different people. You’ll require something safe and roomy in case you’re planning to become a parent or are one. If you buy a used car, it also important to make sure that you have cross-referenced the ownership details. Never extend a car … Now, you’ll get serious about purchasing your selected vehicle. Yes, cars eventually wear out and prompt for replacement. You should always consider the additional ownership costs when buying a brand new car. Doing you research will also help you determine if you can not only afford your dream car but that you can also afford the cost of maintaining it from the servicing, parts, security, style and car insurance in Kenya. In fact, the preparation should begin even before you set foot in that showroom. The driving record is a primary factor that determines how much you’ll pay. They’ll then narrow down the potential choices to 3-5 models. This is because the second hand cars may not have their manufacturer presence in the country. However, make sure not to pay for technology and features that you will not use. This does not just include the monthly instalment but also cost of petrol, toll and parking, which are parts and parcels of car ownership. You’ll thus be likely to win the best deal possible. It’s time to decide what you’d want in your vehicle. For example, it is important to know that cars depreciate in value so if you buy a new car, the value of that car immediately goes down in value the minute you drive it from the dealer. For instance, consider checking out LendingTree.com and Bankrate.com. Even if the second car you drive feels like the right one, it's not worth writing the others off. On top of the servicing costs of the car, we also have the annual insurance costs. You’ve found your perfect car. Discuss the options you’ve with your current credit union or bank. Also, there’s no set price point to negotiate towards with any car! In turn, that will save you headaches and a significant deal of money. You never wake up, decide to buy a new car, walk into … This is perhaps the most factor to consider when buying a car especially the second hand cars. In no particular order, the biggest factors to consider before purchasing a vehicle include: Your debt to income ratio. That is why owning a car can eliminate at least a million dollars in future value from a retirement account. It is however also important to research on the dealer you set your sights on to ensure you are not going to be a victim of a con. This research on the different dealers out there will also help you get information on the different incentives they have. Don’t forget the cost of insurance premiums, too. So you have narrowed down on the car that you want and are comfortable with its pros and cons. It’d be wiser to plan for the financing for now. Car salespersons might turn your pockets inside out, why? Depreciation (losing value) But, that doesn’t imply that it’s now an easy time to purchase a car. comprehehensive car insurance quote in Kenya, All New Full Electric Tesla Model 3 For KSH 3,000,000, Common Financial Mistakes Young Kenyans Make. Cars are different. Luxury brands like Mercedes have both availability of spare parts and servicing from the manufacturers. If you are purchasing your car with a hire purchase loan, consider your loan eligibility. It’s an opportunity to evaluate factors like acceleration, handling properties, comfort levels, and the in-vehicle technology. In 2018, Statista conducted a survey in which they asked their users in the UK and America the key influencing factors that went into making their decisions when choosing a new vehicle. Once you’ve reached and completed up to this step, you can smile since the hard part is over. This type of technology can be very beneficial. inquiries@pesabazaar.com. Your long-term happiness with such a purchase is at stake here. But, ensure that their loan terms and rates are similar to your pre-approved loan. While he provided a list of factors to consider before making the final decision, most fall into four basic categories: 1) your company’s financial status, 2) how you intend to purchase the vehicle, 3) what type of vehicle you want, and 4) whether it makes sense tax-wise. It’d be right to call such people brand loyalists. In fact, that’s the main reason why there are so many models and makes on the market. You have put a few factors into consideration before buying a car. Look out for car bazaars like the one on every Sunday at the Jamhuri Park along Ngong Road. Then, you’d simply need to go for a car that you can afford. Find out how different dealers have priced the car that you want. You can easily make use of your pre-approved loan as a baseline against which your dealer will compete. However, you’ll endure all the hassle that accompany advertising, arranging for test drives, and the necessary paperwork. This can be done through the Kenya Revenue Authority and the National Transport and Safety Authority. Obviously price is a starting point, but to help you narrow down your choices further, you need to focus on the following three factors: Quality, Cost of Ownership, and Reliability. Similarly, you might receive coupons in your mail which entitle you to such rebates. You’re more likely to acquire money for the old car if you sell it on your own. But, they barely spend the same amount of time to research new cars as the rest of the populace. Common brands like Toyota have continued to excel in the Kenyan market because of the availability of cheap spare parts and technical expertise in garages and service centers. Take keen notes. What do you do, now? Establishing your budget for a set of wheels will be easy when paying cash. New cars often come with advanced safety features such as adaptive headlights, automatic parking, and backup cameras. In fact, dealers are known for not availing all discounts available to them. It’ll depend on your creditworthiness. From your requirements to your budget, there are plenty of factors to consider before you commit to a purchase. Next, you should look up that car’s invoice price. You can then file an application for a pre-approved loan. What factors are considered when buying a new car? Some of us are empty nesters who’ve been saddled with underfunded 401Ks and college bills. We highly advise that you seek multiple quotes from different companies. Fuel is the main running expense for any motor vehicle owner although the emergence of hybrid and electric cars is starting to take shape. You’re aware of what you need and want. You can look up the ‘book value’ of the trade in using different resources. There are two universal facts about buying a car that everyone needs to remember. The availability of spare parts and servicing greatly influences the costs involved in running the car. Choose which loan works for you. It was status symbol that only a few could afford and the others aspire to. Very few people pay cash. For instance, there are cases where you’ll seek online reviews of a dealer you’re considering only not to find any. As well, decide on your mode of payment. It’s not yet time to head to the dealerships, yet. Licence Number : IRA/05/30639/2016. Nov 8, 2015 by Jasmine Watts. One of the most notable factors in buying a new car may be the safety devices, features, and technology. The struggles and hurdles facing the auto industry are unprecedented; so are the deals availed to potential buyers. 4 factors to consider when buying a family car. Simple, talk to people! Unfortunately, there are countless horror stories about people who did not do their homework when it came to this type of purchase. Other factors considered include age, gender, common location of driving and your marital status. Pricing varies with age, content, demand, and supply. Factor in the price of insurance, fuel, and maintenance when estimating the amount you need for your new ride. Next, they’ll look up reviews, prices, and factor in rebates and incentives. Do you want a car to move from one point to another, do you want one for ease of movement for your family or do you want one for business. Make sure you are receiving a good value and secure any promises in writing.As you can see, buying a new car can be a complicated process that involves the consideration of many important factors. But, following the above guide will get you in the right direction. For example, before you buy that used car, make sure you find out just how many miles it has done before you are cheated into buying a much older car. Bottom line is, do you research on every step you take to buy that car to make sure you have made the absolute best decision on each step. But, that’s a surefire way to retire broke is foolishly wasting money on a car. For obvious reasons, a good, clean record would be preferable to an insurer. : of course, we’re not talking about their name their needs avoid! Now at KSh 103/litre, it might take less or even more than that right... Although the emergence of hybrid and electric cars is starting to take shape loan terms and rates are similar your. Even more than you anticipated steps to take shape and buying a brand new car the differences your... Old car annual insurance costs good deal your record features accidents and tickets, already... 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