Buying First Car Tips: A decade ago, having a car here in Kenya was considered a luxury, however, that has changed within the last 10 years. A car today can be classified as an essential tool of convenience. Buying your very first car can be a daunting task, but this article will take you through the process.
1). Identify the need. The first question you should ask yourself is; do I really need the car? The answer to this question will revolve around the nature of your occupation, one’s physical condition, geographical location and distance between where you live and where you work and most importantly, your income.
2). Set a budget. Can I afford a car? Keep in mind that budgeting for a car does not only involve the initial cost of purchase, there are other associated costs that come with buying a car like maintenance, insurance, fuel and many others. There is however a simple formula of determining how far you can stretch for the car’s upkeep. Calculate your basic cost of living; then with what is left, calculate the approximate running costs of a car after your basic cost of living has been covered. Also to put into consideration is determining if having a car is going to increase or boost your incomes; either directly or indirectly. Also your basic monthly turnovers can help you determine if you can afford to buy a vehicle through asset financing or hire purchase.
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3). Identify the features or specifications that will have to suit you in the car you intend to have, for instance if you live in an area with very rough roads and generally steep terrain with frequent rains and roads that are not paved, a Suzuki Alto may not suit your needs. A cross-over SUV would be the perfect car for this kind of terrain. In addition to that put into consideration your budgets for fuel and maintenance; also factor in space for family or luggage.
4). Identify a variety of cars that can suite your needs and then get some information about them. Do a price comparison, get information about their reliability, running cost eg, costs of routine maintenance parts and also fuel economy. you can get this through online resources and reviews or even seek the services of a consultant.
5). Make an informed decision and shop around. With sufficient consultancy , make your decision. Once you have identified the car that suits you, do some window shopping to get some objective comparisons. Also engage someone familiar with vehicles to do the pre purchase inspection for you and ensure you buy a vehicle with a clean bill of health.
6). Based on your cashflows, decide on the mode of buying the car. You can choose to buy in cash, asset financing or hire purchase. I did an article on this previously.
Buying First Car Tips: If you wish to engage further on this, you can reach out to me on my Facebook page.
