ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Buying Your Second Car - What to pick and how to pay for it

Updated on April 26, 2014
Ambassador, the old Indian Family Car
Ambassador, the old Indian Family Car | Source
Maruti Suzuki 800, the next generation's Family Car
Maruti Suzuki 800, the next generation's Family Car | Source
Maruti Suzuki WagonR LXI , our present car
Maruti Suzuki WagonR LXI , our present car | Source

Its time for a new car

Buying a car is a huge step for a person getting their first car. It smacks of independence, of having a choice of when to go and where to go, of announcing to the world at large that you have arrived!

The excitement of buying your first car can never match the excitement of merely upgrading to a better car. Still it is when you are buying your second car that you need to do a lot more soul searching and research.For one thing, its no longer merely you who will be using the car, its going to be needed by your family as well. The Ambassador was the old preferred Family Car in India for many decades before the market opened up to Marutis and the little Maruti Suzuki 800 took over the Indian roads.

It helped that the little Maruti was more suited for the new nuclear family which was evolving in modern middle class India. The Ambassador was my Grandfather's Car while the Maruti 800 was my Father's Car. It was the little car that I learnt to drive on and it had always held a cherished place in my heart. My father did upgrade later to an Esteem from Maruti and while it was a sedan with a lot more power, it was not what my husband and I were looking for.

Our first car was the Maruti Suzuki WagonR. It was a new offering from Maruti and while it was a small car the hatchback had the kind of space that we would need on our periodic travels on highways. Not too many people were pleased with the WagonR at that point of time, some calling it a bread box and others a bedroom(all seats could be arranged to form two passable beds inside the car.) It sure proved its critics wrong and the little car with a valiant heart has been a wonderful choice for us over the last decade.

Now its time to move on...its time to upgrade to a bigger and better car. The growing family size demands it. So what are we thinking of buying next? It actually depends on a number of factors which I will be detailing below.

What's Your Pick?

What kind of car do you want?

See results

What is the utility of the car going to be?

What kind of car you buy will depend on what you intend to use the car for. A sedan, a hatchback, a multi terrain vehicle or a sports utility vehicle, what is it that you really need? This means you need to answer a few questions -

1. Is it a car that will replace your current car ? or will it be in addition to the one you already have?

2. Is the car going to be used to drive a round a lot picking up and dropping kids to and from their various activities? Pick a car with a decent mileage.

3. Is the car going to be used for sporting activities? Camping, cross country traveling and all will need a sturdy four wheel drive with plenty of storage space.

4. Is the car likely to be replaced soon or will you continue with it for the next decade or so? If you plan on keeping it you may want to go in for a new one rather than a used car.

Picking the right model

Each car manufacturer has a number of options for you to pick and choose from. Once you have decided on exactly what the car is to be used for you need to pick a make and manufacturer. Now its easy to get confused here because each type of car has a number of different models to offer.

The lower end model and highest end model can actually have such a vast difference in price that you may begin to wonder if they really are the same car. What brings about this difference is a number of subtle changes to the interiors and features offered in each of these differently priced models.

These features can include power steering, power windows, AC availability, airbags, music system, hub caps and a whole lot more. Some features can be added on to the car at a later date when you have money to spare, so these can be skipped when picking a model.

Loans

Did you take a loan to buy your first car?

See results

What is your budget?

Once you know what you want the car to do for you the most important factor is the budget. Just how much can you afford to spend on a new car? Are you going to take out a car loan, or do you want to pick up something that you can make a down payment on?

If you are hoping to buy a new car there is a good chance that you will want to take on a loan. If so, consider the EMI or monthly repayment capacity that you have. A loan will be easier to repay on a lower EMI with a higher interest rate for some, but to others a shorter loan rate with lump sum payments may make more sense.

Selling your old car to get some cash for the deposit is also a good idea. In case you are buying a car from the same manufacturer as the car you already own, you can even strike up a good deal on an exchange offer. Get the car evaluated by an independent third party as well, so that you know what the going rate for your vehicle would be.

Used Cars for Sale
Used Cars for Sale | Source

Financing Options

There are a number of factors which can influence your budget and the financing options that you have. Here are some factors to consider.

1. Are you buying a new car or a used one? A brand new car will be more expensive while you may be able to finance a used car easily on your own.

2. Are you exchanging your old car for a new one? The exchange value of the old car can considerably reduce the cost of the new car for you.

3. Are you getting a loan? This can be a tricky issue for those of you who have a bad credit rating. Getting a loan approved is fairly easy if you work in some company but can be really painful if you are self employed.

4. Have you got any money set aside as savings which can be used to reduce the loan amount? Rather than pay higher EMIs it may just be worthwhile breaking that FD.


Our Choice

In my case we will be upgrading our present car to a new bigger model. Our family size has increased since we bought this car and we need more space. Also we tend to drive long distances on holidays and that means more space and more power needed.

Since we don't change our cars frequently we will be buying a new car so that we can run with it for the next decade or so before we have to think about replacing it. A used car may have some nasty surprise for us which we do not want to risk.

We will be taking a loan out for the car but not for the whole amount. There are some savings that we will use to reduce the principal amount of the loan. It will be a long term loan for over 6 years so that the EMI is not too high for us to manage.

Initially we were arguing over whether to continue with a Maruti Suzuki car or to try out a different manufacturer like Toyoto, Honda,Tata Motors or Mahindra. We skipped manufacturers who do not have a wide service network as we tend to live in a number of different places all over the country.

Eventually we decided to stick with Maruti and picked up the Swift Dzire sedan.

Source

Comments

    0 of 8192 characters used
    Post Comment

    • Kathryn Stratford profile image

      Kathryn 

      4 years ago from Manchester, Connecticut

      These are great questions to ask to determine what kind of car to buy, and what finance options to use.

      I am in the process of looking for a car now, and although it will be a while before I have enough money to do so, I want to start thinking about my options, and planning on the expenses. Buying a car is a serious issue.

      Thanks for this useful hub, and have a great day.

      ~ Kathryn

    • cashmere profile imageAUTHOR

      cashmere 

      6 years ago from India

      Thank you Mary, we're still in the process ourselves :)

    • mary615 profile image

      Mary Hyatt 

      6 years ago from Florida

      Very interesting Hub. I am in the process of buying a used car for one of my granddaughters who totaled her car in an accident. It is proving to be a real task! You have given me some ideas here.

      I voted this Hub UP, etc.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)