Before thinking of buying a car, you should first decide whether to buy a new one or just be contented on used cars. It might get you confuse, especially when you are new in buying cars. There are a lot of things to consider. Budget will be the priority. Where will you use it will be the next.
Now let’s look at their differences, especially when it comes to expenses.
When buying a used car, you must first decide what type or car you would like to buy. By this, you should consider your purpose of buying it. Is it just for your personal use, for your job or for your family use? When you already decide which car to buy, you now determine your allotted budget for that. If you’re planning to buy a used car outright, you need first to know if you can afford it. You can also buy a car by financing. Some private car dealer offer financing. Now if you already have enough money to buy a used car, you must not forget that there are also other expenses to consider. You may just mind the cost of the car and ignore the registration fees, title tax, license, state taxes, and a change in your car insurance rate. You can look online to see how much is the fee or you can call your car dealer to inquire any additional fee. If in case you decided to buy a much older car or a car that needs maintenance, you must save extra money to cover up those expenses. You should also not be surprise if you found out that there are some hidden charges in buying a car. You may just mind the cost of the car and ignore the registration fees, title tax, license, state taxes, and a change in your car insurance rate.
Now when you decide to buy a new car, there are also things to consider. You have to pay for tax and title fee for the license. There are also some car dealers that add some extra charges. That’s why you have to be educated in calculating your taxes and your title fees to avoid to be fooled by dishonest car dealers. You have to see the final negotiated price of the car you’ll be buying. Don’t forget to inquire the car dealer about incentives. Also, ask if your state offers a sales tax break if ever you decide to trade in a car. If it’s that so, you need to pay the tax on the difference between the negotiated value of your trade-in car and your new car. Now to know your state tax rate, you have to first find it, and then multiply the price of the new car with the sales tax rate so that you will get the total tax bill.