That is why owning a car can eliminate at least a million dollars in future value from a retirement account. But, ensure that their loan terms and rates are similar to your pre-approved loan. Still, there are remaining crucial steps to take before making any deal. For instance, youâll want to consider the annual registration fees, insurance premiums, and gasoline. 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. Purchase from a fair and cooperative dealer. In turn, that makes for a strong buyersâ market. The sky is quite seriously the limit. We highly advise that you seek multiple quotes from different companies. No matter how low your EMI may be, if the car doesn’t have good mileage, you will end up paying more. image credit, Dodge. Like anything else, have a budget in place to help you get that car. In such cases, youâll need to establish the amount you can comfortably afford to pay every month. When looking for a new car, the world is your oyster. We are still in the age of fuel and diesel cars of the combustion engine since its invention in 1876 by Nikolaus Otto. Take a look at your monthly commitment, and consider how much you can afford to pay for your car every month. The struggles and hurdles facing the auto industry are unprecedented; so are the deals availed to potential buyers. #1 Buying a Car Will Affect Your Savings Rate. That nice red Range Rover you like may not be what you can afford. Strive to get an amount close to the average âbook valueâ from the dealership. 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. 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 … But, that doesnât imply that itâs now an easy time to purchase a car. Please refer to our Terms and conditions on this website. You never wake up, decide to buy a new car, walk into … Similarly, theyâll have different wants. Also, put these guidelines into action. Itâd be right to call such people brand loyalists. First, cars are known to be depreciating assets and second, they are bound to be upgraded in a few years. 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. 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. Cars are different. Choose which loan works for you. Next, theyâll look up reviews, prices, and factor in rebates and incentives. The second question you need to ask yourself is, do you want a brand new car or do you want a used car. But, typically, theyâre less likely to go down than up. Buyers should choose vehicles with features that meet their needs but avoid extra features are unnecessary. First, you ought to establish your budget before doing anything else. First, cars are known to be depreciating assets and second, they are bound to be upgraded in a few years. What do we imply by the term âinvoice priceâ? With the increasing cost of petrol now at KSh 103/litre, it can quickly bite into your pocket. It is therefore very important to do your research on the brand of that you want. They take an average of 4-6 months to make the decision about which make and model theyâll purchase. Now, negotiate with your dealer. In your case, it might take less or even more than that. Through research, you will also find out if the spare parts of the car you want are readily available or not. There are always new technological and safety advancements being made in the car … Even with rebates, discounts and negotiation, you will be paying top dollar. 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. For obvious reasons, a good, clean record would be preferable to an insurer. 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. You can easily make use of your pre-approved loan as a baseline against which your dealer will compete. Buying a used car can be risky. Youâre more likely to acquire money for the old car if you sell it on your own. 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