Buying a car is an important decision that involves a major investment, so it must be performed informed manner.

Mary Elizabeth Mendez, former Home Economics Guide | View-Domestic Economy

Buying a car is part of the ambition of many and represents a large majority of cases an act of borrowing rather than saving the fruit. In this regard, there are many alternatives in the market and also a lot of ability to pay. What set to make a smart purchase, free of abusive interest charges and exaggerated? That's part of what we try to clarify through important tips to support the purchase of your first car.

What car we buy: There is probably a difference between what we consider the car of our dreams and that really is the vehicle that we can buy, and to reach this decision need to consider the costs that the car will generate. It is important to understand that a car for private use is by no means an investment will always be an expense, expense because we decided to provide comfort.

Thus we have to consider the value of the car, its fuel efficiency, the value of spare parts, the value of insurance for a vehicle of this kind and also the cost of registration certificate, which have to pay each year and which fluctuates depending on the model, make and year.

New or Used: Logically a used car is more affordable than a new one if what you seek is the most economical alternative. However, it is important to assess whether the conditions of the car in question is actually deserving that price and if we are willing to pay that value. By opting for a used one, there will be more opportunities to trade and the important thing is to try to figure out how much is willing to lower or automotive business. Anyway, there is always the possibility of a rebate, and should not take the deal without even trying to get it.

Payment: Certainly the best method of payment is always cash, although most should opt for the credit and the important thing is to identify which institution offers the most convenient. Today the bank credit cards have attractive solutions for the purchase of vehicles, allowing the payment in 24 or more installments maintaining the counter value, which is one of the best alternatives on the market.

If we can not access that alternative should be considered loans offered by banks, which are likely to be more convenient than other financial institutions specializing in auto loans, which are often in agreement with the automakers. The key here is to list and finally assess how much will end up paying for our car.

Beware promotions: Probably Automotive offers us several additional products if we choose as an alternative to credit payment of some of the financial with which it has agreements. These benefits can be free patent, the first and even the second free review, alarm, reversing wheels gift, among other things sensor. In these cases, it is worth calculating the total amount of interest payable on the loan, versus the value of the "gifts" that offer, probably later this year promotions no longer seem so attractive.

Choose a safe: The first is to determine what kind of insurance we will, with or without a deductible. Obviously those without deductible are a bit more expensive because they cover all losses suffered by the car, from the smallest. However, it is considered a few other factors, such as the decision to lock in automotive - with the institution they suggest or secure it with another company that we ourselves seek. Given that's the best quote and get clear on the average value of insurance for our car, which depend on the make, model and year of the vehicle.

Another important recommendation is to hire the service to the insurance itself, and not through retail companies that sell insurance but are merely an intermediary between you and the institution that ensures, why the answer from a disaster it is usually slower and less efficient. While offer tempting rates, lower service quality.

Finally, the most important recommendation has to do with evaluating the decision, consider the expenses will mean a vehicle in our monthly budget, and those that will arise product of time. A car will always need maintenance, replacement of parts, etc.

Moreover, we must consider paying for parking, gasoline and tolls, among other things, and it is certainly necessary to consider these expenses in our financial planning to know if we are actually able to afford to buy a car, or if it is better wait.