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Buying a new car is both exciting and stressful. It is a very big purchase and it is vital that you make the right decisions early on, or you may end up paying for them when you are a few miles down the road. 

Cars can be a massive money pit. Buy the wrong one and you will end up having to pay out repeatedly to maintain it. On top of that, you will have all of the running costs to factor into your decision. While you may be taken by the sleek design, superior road holding, and powerful engine, sadly the reality of car ownership often comes down to running costs. 

Here are a few tips to help you make the right financial decision when it comes to buying your new car. 

Should You Buy New Or Used?

There is no right or wrong answer to this question. The fact of the matter is that the car that you choose has to be right for you, whether you buy it brand new off the lot, used from a car dealership, or second-hand from a private seller. Aside from the obvious differences in price between new and used, here are pros and cons to every choice. 

New cars can be paid for with a range of financing options. Some of these arrangements will mean that you never own the car, you are just leasing it. This is useful if you want a more expensive car as the monthly payments can be more manageable. You can often get finance on used cars from a car dealer, however, when buying straight from a private seller, you will need to find the cash to pay upfront. 

New cars are covered by manufacturers warranty. This means that any major problems will be covered when you first buy the vehicle. Used cars obviously don’t have this luxury, and if anything ever goes with your second-hand car, then you will end up having to pay to get it fixed. 

Check Out Insurance Costs Before You Commit

Before you buy your car, make sure that you check out the cost of insurance. Check out a range of different providers. Be sure and look into pay-per-mile insurance to see if this is a cost-effective method of paying for your cover. 

Often, insurance costs can be quite prohibitive. The price of cover may make the car that you are looking for out of your price range. Knowing how much you can expect paying before you buy will stop you from getting a car that you can’t afford to run.

Take The Car For A Spin

Taking the car you choose for a spin is important. How the car feels when it drives is important information that you need to pay attention to. If you are looking at a used car, driving the car on a variety of roads and performing a number of maneuvers may be necessary to alert you to any issues that may be red flags. 

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