It is everyone’s dream to purchase the first new car after graduated from university. The first car usually creates the best memories. Not only we get to pick the model instead of our other half, we are also able to go wild with our own imagination. First new car is usually the tools of learning experience, from the minute we lay eyes on them to the moment we realize we have outgrown them and decided that it is time to move on.
Meanwhile, picking your first new car can be tricky and hassle sometimes. There will be a complex procedure, service maintenance and repairs, fuel and insurance that are coming to your way. Before we get to there, budget planning is the first thing that we have to consider. In this article, we are going to tackle every checkpoint and procedures of getting a new car.
Steps to Get A New Car
Let’s be honest. Buying a new car is a hassle, be it your first car or your second car. We are always overwhelmed by the complicated procedures. There are no doubts that you wish that someone could help you to complete every single step while you just sit on the couch and receive your new car at your door step. There are simply 9 steps to get your new car.
The car manufacturer dealer will assist you in document submission for loan application and car registration. The documents needed for car loan application are as following:
Hire Purchase is a common car financing plan. Hire Purchase usually works when one has to pay deposit of 10% of the value of the car and then pay the rest of the remaining amount with instalment over the period of either five, seven or nine years. The buyer is in effect of hiring the car until the last payment is made. However, the risk of getting hire purchase is the debt is being secured against the car. If one is unable to pay the monthly instalment, the bank could repossess the car in order to pay off the remaining debt.
Once all the payments are made, you need to pay a final fee, which is the ‘option to purchase’ fee in order to own the car. This covers the cost of transferring the ownership of the car. The term usually mentioned in the Hire Purchase agreement before any procedure is done from thereon.
The documents required from the banks may be varied on case-to-case basis.
When you are preparing all the necessary documents, please take note on your Central Credit Reference Information (CCRIS) and CTOS status. CCRIS provides credit reports from financial service providers in Malaysia. Information that will be listed on CCRIS are outstanding loans, summons, outstanding balance of PTPTN or declaration of bankruptcy. CTOS provides credit reporting to determine an applicant’s creditworthiness. Both CCRIS and CTOS are important to car buyer as it is one of the key aspect to consider of whether to approve or reject your loan application after examining the credit payment ability and financial commitment.
Budget and Homework
Buying your first new car is a tremendous responsibility. It is necessary to have a budget planning beforehand. The money that you allocated need to include elements such as down payment, monthly installment, fuel expenses as well as service and maintenance. Since it is your first car, you have to set a realistic planning. Considering it is going to be a commute for you to and fro from college or work, an econobox or sedan should be your pick. You may consider carpooling with fellow schoolmates and colleague to split the fuel fare. A basic rule to determine whether you can afford a new car, try to speculate if the required monthly instalment is 20% of your monthly salary. If the monthly instalment of the car is more than 20% of your monthly income, choose a less expensive car instead.
You can also purchase a new car when it is near to the end of the year as most dealers will introduce variety of discounts and promotions to boost up the end of the year sales. Buying a new car before the launch of the new models can save some cash as dealers are clearing out their current model to make room for the new models. Besides going to each and every showroom for price negotiations, you can also purchase a new car online. Be on the lookout for MyCarsearch for the best deal in town.
Your first car should be practical. As time goes by you would move on to another. However, buying a car is a progression of trial and error. One should make the best value out of the allocated budget. To enjoy more savings and save your time, online purchase would be a better option to you instead of going through the conventional door to door price comparison. You will probably end up in between three figures only. Thus, financial planning and getting the right platform is the key. Regardless of the complicated process and the hardship to find the right car, we can agree that getting your dream car out of the best deal is worth the effort.