6 Factors To Consider Before Purchase Your First Car

Sumber:http://moneymagnet2.blogspot.com/2009/11/6-factors-to-consider-before-purchase.html
For those who just graduated and are planning to enter the workforce, a car is an important element. For example in Kuching, most of us drive to work. We cannot rely on the public transport. The local public transport is limited, inconvenient and not punctual.

There are several important factors to consider before you purchase your first car. I listed the factors as below:

1) Ability to pay the monthly repayment (car loan)
I listed this as the most important factor. One must know their budget well before they sign on the hire purchase agreement. Most bank will require a monthly income of at least three times from the monthly hire purchase instalment. To be on the safe side, I think it is a good idea if the monthly installment is 25% of our monthly salary. This will leave more space for our
money to grow.

2) Fuel consumption of the car
Unless someone else pay for your car fuel, you should really consider whether the type of the car that you are going to buy is high fuel consuming or not. I heard a lot of cases where one had to spend the same amount of car monthly installment for their car fuel. Bear in mind, the fuel price is increasing from time to time. It is wise to choose a car which requite less fuel for you to move around. It is environmental friendly too.

3) Yearly insurance of the car
Do check how much you have to pay for the car insurance. And do bear in mind that every year this should be in your budget. As no car is allowed to be on the road without an insurance.

4) Yearly road tax of the car
Imported cars and bigger car will require a higher road tax compare to locally made cars. The road tax also should be in your yearly budget.

5) Functionality of the car
Do you need a sedan car for your family? Or most of the time you travel alone? For family car, you will need a bigger car. And you will only require a small car if you are driving alone most
of the time.

6) Availability of spare parts
This is another factor which is always not in the considerations list of a new car buyers. It is normal for us to expect a brand new car to be able to serve us at least until we finish pay the car loan. But, unfortunately, even for brand new imported cars, someday, some parts will need to be changed and replaced. May be due to accidents or other matter. Try to get information on the car spare parts. You will not wish to know that, later, you will have to wait for months for the spare parts to be send from the original country. Or worse, the spare part is not more in production.

I do hope the above will provide first time car buyers with some information.

Anymore factors which I missed out? Do add in and share with me.