Buying a Car
Buying a car is a significant purchase in your life and there are a number of factors worth considering. If you want to make sure you get the vehicle that is right for you, read this article for some key advice.
The decision behind which car to buy is not an easy one. Should we buy new or second hand? Which model should we buy? Cost can also be a big factor in deciding which car to buy.
Because the value of a car depreciates so quickly, it is important to choose one which matches your needs and will last for a long time. This way your money will have worked as efficiently as possible for you.
Deciding between a new car or a pre-owned car
The choice between buying a new car or a pre-owned car depends on how much money you have to spend.
New cars are more expensive than pre-owned cars and lose their value very quickly.
In the UAE there is typically only one dealer for each car manufacturer when buying a new car. This lack of choice means you will find it hard to bargain or negotiate a lower price.
However, when buying a new car you may receive benefits such as service agreements and cash-back options. It may be worth looking at the different benefits offered by dealers to see which suits you best.
Pre-owned cars are normally a lot cheaper than new cars – you can try your best to reduce the price further by bargaining the price with the dealer or owner. Using websites and various sources, you may even find different prices for the same model.
However, buying a used car can be a more risky purchase as they may not be covered by warranty and could have underlying problems that are not apparent when you first see the car.
Choosing the right type of bank loan
If you are looking for a bank loan to help you buy the car, look around to find the best interest rate payable on the loan. Don’t take a loan unless you can afford to keep up with repayments and make sure you check the length of the loan. The longer the loan, the more you will pay in total.
It is worth remembering that there are two types of bank loans when it comes to buying a car: car loans, and personal loans.
If you choose to take a car loan the car is owned by the bank, meaning you are unable to sell the car until you have paid off the loan in full. If you choose to take a personal loan the car is owned by you, meaning you can sell it at any time.
The interest rate on a personal loan is likely to be higher than on a car loan – although you should always shop around and see all the rates to confirm this.
Shop around for Pre-Owned cars
There are more options than just dealers when it comes to buying a pre-owned car. Make a checklist of your car needs and check different places to see what fits in.
Pre-owned car auctions may be held regularly in your area – In the UAE, the Police carry out regular auctions of cars.
Message boards in supermarkets are a popular and cheap method of advertising too, keep an eye out out for any adverts for pre-owned cars in your local shop.
There are various websites that sell pre-owned cars including Dubizzle, Dubaicars or Yallamotor.
Test drive the car before you commit to buying
Whether you buy a new car or a pre-owned car, it is important to test drive the car before deciding on a purchase. With a new car, you should test drive it to check that it is comfortable to drive and that it runs smoothly – remember it is a large investment so always make sure everything feels right!
With pre-owned cars, you are also testing it to check that there are no problems at all with the car. You won’t be covered under warranty if there are any problems with a pre-owned car as you would be with a new car. It may be good to bring along a friend who works with cars to check for you; the seller may be hiding something or may even be unaware of a potential problem themselves.