What factors must I consider before purchasing a car?

Purchasing a new car is an exciting milestone in life as it gives you the convenience, freedom and flexibility to travel anywhere at any time. Owning a car is also a long-term commitment that requires consistent financing and maintenance — steer clear of heavy financial burden by making rational purchasing decisions and taking up car insurance for coverage against emergencies! Here are some questions that serve as guidance to help you make the perfect car purchasing decision.

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Does it fit within my budget?
Determine whether you have enough to pay for a car before figuring out what model to purchase. Evaluate the available models, have a clear understanding of the service fees, maintenance expenses and licensing costs involved, and the amount of savings you have. Keep this in mind: the cost of purchasing a vehicle will exceed the price of the car itself. There might be additional expenses such as an extended warranty or other miscellaneous fees, in addition to monthly running costs such as fuel and car insurance — do factor them into your car budget for a comprehensive evaluation!

What type of car do I need?
Once you’ve planned a budget, list out the vehicle features you require to match your needs. If you have a huge family of 5, you might consider purchasing a sport utility vehicle to fit everyone comfortably. If you are a working individual, you can consider purchasing a sedan or a hatchback with relatively lower prices and maintenance costs. Please take note of its safety features and fuel economy when researching specific models. After researching the vehicle options available, pick the ideal model and go for a test drive!

How can I finance the car?
Get quotes from different banks and pick the best short-term repayment plan with low interest. Recently, car loans have longer repayment periods; although a 7-year loan will mean lower monthly payments than a 5-year loan, the paid interest will be much more. Here’s a tip to reduce your monthly car financing burden — make as big a deposit as you can when purchasing to lower your monthly instalments and reduce the interest paid to the bank.

After evaluating the above factors, you are ready to purchase a car — one step closer to achieving mobility, convenience and flexibility! Take a step further to protect your vehicle against accidents and emergencies with AIG’s car insurance that simplifies claim services and road tax renewal! Please find out more about our car insurance at https://www.aig.my/personal/auto-insurance.