Buying a New or Used Vehicle: Points to Consider Carefully

It’s no secret that the family car will not last much longer. Since making repairs will not extend the life of the vehicle by any appreciable amount, the best move to make is to start looking for a replacement. Whether the plan is to invest in a new vehicle or go with a high quality used car, the buyer is likely to need some financing. Here are some points to keep in mind as the buyer tries to figure out where to find car loans that are a good fit.

What Type of Vehicle is Needed?

Before heading out to do any type of car shopping, take the time to come up with a list of all the features that the replacement vehicle must possess. Start by thinking of all the features that the present vehicle provides and how much use the family gets from them. After identifying those core features, add in any other qualities that the family could put to good use. This simple exercise will make it easier to focus on makes and models that are the right size and will be a true asset to the owner.

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What Type of Monthly Payment Will Fit in the Budget Without Difficulty?

All types of car loans in Singapore will include a monthly payment. Take a good look at the household budget and figure out how much the family can afford to allocate to that payment. Remember to set aside some funds for general car upkeep and insurance before arriving at the figure for the loan payment. In some cases, this will help the buyer to determine if it’s financially feasible to invest in a new car right now, or if going with a pre-owned vehicle with lower payments is the best solution.

Remember to Verify the Loan Duration or Tenure

It’s possible to come across offers for new or used car loans that look great at first glance. Before signing the loan papers, find out how many months of payments are involved. Is taking out a loan with a 60 month duration really in the best interests of the buyer? Would there be that much difference in the monthly payment if the buyer went with a 48 month loan? Assuming the loan with a shorter tenure or term is affordable, opting for this approach will save money in the long run.

Take the time to explore several car loans financing options before making a decision. Check the loan provisions and project how much the debtor will pay over the life of each offer. Doing so will make it easier to choose an offer that is truly the best deal.

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