Tips for Buying a Car in America (Texas, Dallas, California, New York, And Toronto) - Owning a car is the dream of many people. As an expensive asset, owning a car is a luxury that requires a lot of effort to buy. However, recently, improving economic conditions have made the growth of car owners in Indonesia also increase.
One of the factors driving the rapid growth of vehicles circulating on the road is the ease of purchasing vehicles on credit. The presence of finance companies (leasing) has a significant impact on the growth in the number of owners of these four-wheeled vehicles.
Since ancient times, it has been known that it is best to buy something with cash. This has become the basic principle of economics that will free a person from debt that can be a burden both morally and materially.
If you can't afford a car with cash and have a strong desire to own a car, a car loan can be a practical solution. Make sure you buy the latest and most advanced versions of cars such as Tesla, Toyota, BMW, Volvo, and other car brands.
In addition to credit, of course there are some people who choose to buy a car in cash. There are several reasons why a person may finally decide to buy a car with cash. However, it must be admitted that buying in cash does have some advantages and disadvantages.
Tips for Buying a Car in America
Buying a car in cash is actually quite profitable because it will not be in debt, and have to bear a fairly large interest burden. But the drawback is that your savings can be drained in large amounts. Also, there is no guarantee that you will get car insurance coverage from the dealer, unlike buying it on credit.
However, there are various reasons why someone decides to buy it for cash. Here are smart tips for buying a car with cash, reports journaluniversity.com:
Determine the time to buy
Determine the time to buy a car in advance, say at least 6 months or a year in advance. Cars are assets that are not cheap, so buying a car certainly requires good planning.
Buying a car in cash without planning time will actually drain large amounts of savings. What happens if your savings suddenly run out in large amounts? Is the rest still enough for monthly meals, paying bills for water, electricity, internet, and so on?
Calculate the price of a car using the inflation method.
If you intend to buy a car in the next two years for $15,000, pool your funds in a low-risk investment instrument. By investing, the process of raising funds will be lighter. This is because the yields on some investment products clearly exceed the interest on bank savings.
Some investment instruments that you can choose for under one year to three years are time deposits, money market mutual funds, fixed income mutual funds, and government bonds.
If you choose mutual funds, then you can invest using the cost averaging or periodic method.
Put aside prestige in choosing a car.
Choose a car according to your needs. If you have a family and live in an area prone to flooding, a 7 seater car with a high ground clearance is certainly a smart choice.
Some of us may feel prestige when buying a car with a brand and design that is not in accordance with our wishes. But not necessarily the brand and design that we want can meet our needs in the future.
Don't give up chasing discounts
Try to ask for a discount every time you want to buy this four-wheeled vehicle. With a discount, you can allocate the remaining funds to buy a car for other needs, call it adding an emergency fund (if lacking) or paying for car insurance.