Who wouldn’t like to get a brand new car? Few sensations compare to that new smell! There are mainly three options to buy it: cash, on credit, or with a lease. It is up to you to choose the best scheme.
The best way to buy a car is, without a doubt, cash; because one saves the interest on a loan and it is easier to negotiate the price of the vehicle and even some extras or accessories at no cost. It is also important to consider quoting the cost of good insurance at the agency and outside it. Speaking briefly about automobile insurance, did you know that people with a good Credit Report in the Credit Bureau are less likely to have an accident, and this fact can be evaluated by an insurer through a specialized insurance Score as part of your risk parameters to determine the cost of the policy?
Now that you know, you have another good reason to take care of the payment and use of your credits. Other factors that insurers could consider are the model, color and age of the vehicle, the age of the driver, the zip code of the address where the vehicle will live, whether it has a garage or not, among others.
Going back to the car, Another option to make the purchase is through financing schemes; that is, through a credit that of course will be part of your credit history in the Credit Bureau. Let’s remember that, as with all good credit, the first thing we have to calculate is our ability to pay by making our budget to be certain that we will be able to pay all our commitments.
Equally important is to define if you are going to want to buy a zero kilometer car, a demo car, or a pre-owned one. Within that evaluation, you also have to think about whether the car will meet your transportation, cargo, safety, comfort and performance needs. And speaking of features, you also have to evaluate whether the car will be gasoline-powered, whether it will be a hybrid, a plug-in hybrid, or fully electric. And if it is electric, you have to check if the electricity company can install a meter with 220V light so that the car charges quickly., quote the charger (if it is not included with the car) and its installation. Remember that there are additional costs to take into account such as an extended warranty, services, ownership, vehicle placement and verification (depends on the policies of the State where you live).
If you decide that credit is your best option, you can go, for example, to a bank or directly to automotive agencies. It is well worth comparing the schemes, deadlines and costs that each one offers to choose the one that best suits you.. There are some institutions that offer lower interest rates when you purchase a hybrid or electric car.
Generally, to process your credit you will need to have an open bank account, proof of official identification, prove income, have an attractive history in the Credit Bureau, or have a guarantor (someone who is responsible for the credit in case you do not comply with the payments).
Another option is leasing (leasing), an instrument through which a leasing company buys the car and grants you its use for a mandatory period in exchange for a rent that the parties set for a certain time. This income includes things like: insurance, credit investigation costs, commissions, plates and possession, etc.
Once the term ends, you (the lessee/customer) have the option of returning the vehicle to the lessor or purchasing it, paying an amount that is generally already established in the contract.
Unlike buying a car in cash, with the lease you will be obliged to provide the necessary maintenance at the agency. Additionally, you will not be able to modify or change anything to the car. This scheme is fiscally interesting for natural persons with business activity.
Editor’s note: This text belongs to our Opinion section and reflects only the author’s view, not necessarily the point of view of High Level.
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