How to choose your first car?

(Photo Credit: Freepik)

Deciding to buy your first car? What should you consider?

Of course, the main problem of new drivers is having no idea how to choose the right one. Today Motorist will assist you.

Is it necessary?

You should obviously distinguish between “want” and “necessary” because usually, some people decide to buy something they want and end up feeling sad later when they realize it's not as necessary as they thought. And buying a car is such a big and expensive commitment, so you should think carefully before making a decision. Look at the need from now and in the future that how much you use it. If you think it’s necessary and it’s definitely worth using, you can afford it!

(Photo Credit: Freepik)

Do you have enough money?

Of course, buying a car is a huge debt burden. Are you ready to bear its costs such as the down payment installment and other expenses like petrol and maintanence?

Normally, we should have debt at 20-40% of our incomes/month. For example, if you earn 15,000 baht/month but have to pay 7,500 baht/month for car installment which means 50% of your income, it’s not good for you. Therefore, you should calculate and analyze your income and expenses first.

(Photo Credit: Freepik)

Always have expenses for the duration of use

After buying your car, the costs don’t end there. Have you ever heard that cars = reduced (money)? Many other expenses still awaits you, for example:

• Petrol/Gas price might be more than 1,000 baht per month
• Car insurance for protecting your savings when facing some accidents, but have to pay around 10,000 baht per year
• Car maintenance that every car owner can’t avoid
• Motor Vehicle Act that every car owner has to do because it’s the law
• Car taxes that have a different rate for each type of car

Year 1-5 of using the car will be taxed at

• 1-600 cc.: 0.50 baht/cc.
• 601-1800 cc.:1.50 baht/cc.
• More than 1801 cc.: 4 baht/cc.

After more than 6 years of use, the tax will be reduced by 10% from now and will be reduced by 50% after 10 years of use.

If the tax is not paid as scheduled, a fine will be charged. And if not paid over 3 years, it’ll be considered that the registration is suspended.

(Photo Credit: Freepik)

Understand enough about car loans and interests?

Buying a car is a long debt duration and if you spend more time paying off your car installments, your interests will be growing and growing.

Let’s calculate…

Firstly, we should know the car price/deposit/interest rates.

Then minus a deposit from the total car price such as

Car price: 1,000,000 baht - Deposit: 500,000 baht = Total of car loan 500,000 baht.

Next, let’s calculate the interests

If you select 5% interest per year of the total car loan that means 500,000 x 5% = 25,000 baht per year

Now let’s see how long we will choose the repayment period. If we choose 3 years (36 months) installments, the total interest will be around 75,000 baht.

When the principal plus interest that means all over 3 years we’ll have to pay a total of 575,000 baht, which means you’ll have to pay monthly installments of 15,972 baht.

Once you know your monthly installments at a glance, it can help you plan and estimate future expenses. And when you know the price you can afford, the choice of car you want to buy will be clearer.

(Photo Credit: Freepik)

After that let’s look at how to choose a car

First of all, let’s consider that we use a car for driving to work in everyday life and mainly driving in the city or driving long distances. Then you’ll be able to choose the type and the size of the car that is most suitable.

Pleasant car designs (maybe) help us drive better because we’ll take special care of the car, so go and explore for yourself which design suits you the most.

Also, don’t forget to consider the security system. It’s recommended to go for a test drive at various showrooms to find the right car and the most comfortable driving.

And the last thing that you should not be overlooked is that the service center should be near your home or have several service points because in case of an emergency you’ll be able to get help quickly and at the most convenient.

But if you want to sell your first car please don't forget about Motorist. Don’t worry about underpricing, we’re ready to offer the best deal for you from our partners.

Read More: mReview: 2021 Mitsubishi Space Star – Back To Basics

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