Cars are not a great investment. The very nature of a car as a product includes a lot of expenses in terms of repairs, fuel, and so on. Furthermore, once you buy a car and drive it home, it immediately starts losing value. Still, cars are a necessity of modern life and we don’t always invest in them because they will hold their value but because of their utility.
This doesn’t mean that we shouldn’t try to optimize our new investment. There are more than a few things you can do to improve the value you get from a new car purchase. In this article, we will give you some actionable advice to help you reach this goal.
- Research, research, research
First of all, don’t let the car salesperson be your only source of information when buying. They were trained to sell cars and some of them are pretty good at pointing out the upsides of buying a particular model and not telling your about the downsides.
If you know what you need, it’s only a matter of finding it. Make a list of features and performance goals you want your car to have, decide on a budget and start searching for cars that fit the bill. If you end up with more options than one, then go for the one that looks the coolest.
- Fuel efficiency is very important
We are talking about cars from an investment perspective so it only makes sense that we have to make sure that your investment doesn’t continually drain your budget more than it needs to. This is why fuel efficiency needs to be your primary concern when choosing the model you want to buy.
It’s amazing how much money you can save, especially if you intend to drive you new car every day, by going for a model that gets more miles off a single gallon.
Sure enough, a car that breaks down often will cost you more in the long run even if you manage to save money on the initial buy. Being that Americans don’t replace their cars as often as they did in the past, this becomes an even bigger issue.
Most cars won’t break down often within the first couple of years, especially if they are treated to regular maintenance. Due to the fact that, on average, Americans buy new cars every 6.5 years these days, a problematic car is going to cause its owner a lot of grief in the later two-thirds of its life-cycle.
- Is the extra equipment worth it?
OK, a lot of dealerships will offer a few versions for every model. The ones that cost more will have things like built-in DVD players, leather seats, and so on. The important thing is to calculate whether you could put in the extra equipment that you want for less if you did it yourself.
Furthermore, you need to see if paying for that extra equipment translates into more value on the car you are buying in the long run – meaning, will this equipment help you sell it for more when the time comes. Figure this out before you opt for that sweet extra equipment that costs just a bit more.
- Make sure you can take care of your purchase
You need to be able to keep your new car’s value as high as possible before you purchase the next one. This means that you need to figure out how much the parts cost, whether you can manage to pay for registration, and so on.
You also want to make sure you can keep the car in a good state. The basic thing is to have a garage. If you don’t have one, you might want to consider a metal frame carport. They are affordable and will surely keep your car safe from the elements.
We hope that this advice helps you. Don’t rush into a decision and ask for advice if you are in over your head when it comes to researching how good a particular car model is. Get a professional opinion if you can’t make a decision even after you consult your friends and family. Nobody is rushing you into a purchase.