There was a time when purchasing a car was considered a luxury move. Today, with so many affordable options in the market, more and more people can now afford a car without feeling bankrupt! Moreover, in the post-pandemic world, the availability of low-budget private cars has enabled buyers to purchase a car of their choice at more affordable prices. There is quite a diverse market when it comes to private cars that perform reliably on the road but aren’t too heavy on your pockets. But, you will need to narrow down your options. Here’s what to consider when buying a low budget car;
1. The car’s mileage
The foremost thing in the list of considerations is the number of miles a low-budget car can travel. Mileage matters more than the car’s age. No matter which car you choose, the mileage it can cover makes a lot of difference. You can specify your mileage requirements in your search tools by using a mileage filter. For instance, you can check out a list of budget cars from Hyundai or Toyota.
2. Set a budget
Imagine you have expensive taste but you are considering a low-budget car. You must not set unrealistic budgets simply to comply with your taste. You can find a reliable model if you look at the right place. The foremost thing is to place the reliability factor on top of your wish list and make a few (not much) sacrifices on some features.
Understandably, a low-budget Volkswagen car would not have the same features as a high-end Volkswagen. You may need to purchase a slightly older model but do not forget about the reliability factor and service cost. You can also make use of a car affordability calculator to set realistic car-buying budgets.
3. The cost of owning and repairing car
You may be excited to purchase a new car on a low budget but do not make the mistake of shaking off the cost of owning it. This is one of the primary mistakes that many new car owners make. In addition to the down payments and monthly EMI, you will also need to consider the fuel and maintenance cost and insurance of the new car. Once you start adding up the cost of ownership, you will see your budget doubling. Therefore, make the final decision only after you have calculated maintenance, car insurance cost, and gas expenses.
One interesting aspect that car owners often overlook is the amount of money they spent on repairs. A regular insurance policy often only supports policy holders in scenarios related to accidents or act of god, but when it comes to small repairs that could occur at any given time, you end up paying from your pocket—if you don’t have a mechanical breakdown coverage.
4. The right kind of financing
Even if it’s low-budget, arranging the finances for your new car is probably the best part of a car dealer’s job. After all, car financing makes a significant part of the dealer’s revenue being a middleman. To ensure that you get the best financing deal, try securing a pre-approved finance offer before you begin the purchase. You can easily do so on online portals by making applications to lenders, individually or collectively. You can also try out dealerships as they may be able to set you up with the best deal.
5. Choosing the right lender
Given the various options of lenders in the market, you might be spoilt for choices. You can save a lot of bucks by finding the right lender based on your circumstances. For instance, you can approach reputed National banks that offer a variety of services, making securing a car loan easy. But, the convenience depends on the interest rates as well as the industry fees.
If you are approaching a Community bank, they may not have the appropriate services. Although, they may attract you with personalized and lower interest rates. On the other hand, Credit Unions offer the lowest interest rates. Their operations range from small to massive services, providing similar services and products as the country’s large banks do.
How you can make your choice is to check whether you have credit challenges or not. If you indeed have credit challenges a Credit union or small community Bank will be a perfect choice. They will offer you flexibility and personalized services.
6. Necessary and reliable features
It is a low-budget car but, does that mean you need to sacrifice the necessary and reliable features? The answer is a good no. There are many options in the markets that do not let you compromise on your preferences. For instance, if you want a keyless entry, you can choose the Ford-150 that doesn’t burn a hole in your pocket.
7. Consider fuel economy
An additional way to save money on a low-budget car is to consider its fuel economy. You need to choose a model with great fuel mileage. Whether you are considering SUVs or trucks, some individual models offer more efficiency than others. You’ll probably avoid having to pay extra dollars for only a couple of extra miles.
Instead, you can choose a model with higher fuel efficiency which will pay off in the long run. For example, an unleaded fuel-efficient and fun-to-drive Honda CR-V will cost less than a premium unleaded fuel in SUV, Acura RDX.
It all concludes after the test drive
You have picked a car, set your budget, cross-checked all the features, inspected its mechanism, researched the additional and insurance cost, and have considered its fuel economy. Now what? It all comes down to the test drive.
Once you are satisfied with what you have chosen, set the time to take a test. This is the best way to note any strange noises or difficulties while driving the car. Remember, you can go low-budget, but do not compromise on comfort and convenience.