While many people may think that private transportation is one of the necessities in their daily lives, there are still many reasons to consider before making a huge decision in buying a car in Singapore. Let’s look at some of the reasons we need to ask ourselves.
- Cost of the car.
First time owners tend to buy a car that might exceed their budget limits, perhaps due to insufficient research, or due to having the opportunity to show off their first vehicle to their family and friends. However, one factor to note is the higher the cost of the car, the higher downpayment is required. With 40% downpayment for a brand new car, it could severely impact the spending limits of the individual. Always think practically, is it necessary to buy an expensive car, or is it sufficient just to have a car for personal transportation? Cost breakdown is extremely important.
- Functions and Features.
The more technologies installed in the car, the higher the price. It could be the latest self-parking feature, or the most updated radio player. Are these essential in the car? Some functions or features may not be necessary or impractical, such as driving a 2 door vehicle when the individual has family members to ferry.
- Price comparison.
Before buying a car, always compare the price before committing to the deal. Some dealers may include free servicing packages, fuel vouchers, or extended warranty for the car. Always compare prices from the dealer companies to maximise the benefit.
- Loan repayment.
If you are unable to pay the full price of the car by cash, it is required to loan the amount from bank or in-house loans. Bank loans interest rates are usually lower compared to loaning from dealer companies. Always ensure that monthly repayment is within the means, as many tend to forget that it is not just the repayment that we have to consider, but also fuel costs, parking costs and insurance costs.
- Used car or new car?
If money is not an issue, consider buying a new car, as chances of defects in a new car is significantly lower compared to a used car. Buying a used car is cheaper, however it comes with it’s disadvantages of many defects due to previous owner driving habits which you are not aware of. Ensure that the car is inspected fully and get the company to solve the defects before taking over the car.
Buying a car in Singapore is not an easy decision to make, however if there is a need to, there are steps to take when buying.