Have you ever dreamed of owning your own car? Imagine driving down a tree-lined street with the windows down on a sunny day, a warm rush of air streaming through your hair...

Buying a car, whether it's a first-time purchase or not, can seem like a daunting task. You've probably seen your share of car commercials on TV and in the print media and recall hearing phrases like "down payment" and "APR."

There is certainly a lot of information you need to understand before you run off to your local dealership.

In this article, we will discuss used and new-car purchasing mainly in Ghana. What you need to know before you decide to buy, how to avoid common pitfalls, getting the best price and what to do if you have a problem with your purchase.

The first thing you must decide before you begin your automobile research is whether you want a new car or a used car. Of course, there are benefits and drawbacks on both sides. If you decide to buy a used car, there are several things you need to keep in mind.

First of all, there are more than 2 million car accidents annually worldwide and chances are if you are in the market for a used car, you will come in contact with at least one automobile that was in an accident. The most important thing about buying a used car is that you know everything about the history of the car, including:

  • the number of previous owners
  • if the car was ever involved in an accident
  • any previous mechanical problems
  • the maintenance history of the car

One of the largest benefits of buying a used car is that you can often get a great deal and in many cases, the car you buy may even be relatively new. Successful used car buyers often are just as happy with their used car as new car buyers are with a new vehicle. But remember, the most common car-buying horror stories do involve the purchase of used cars. When you have a good idea of what kind of car best fits your needs and budget, you can begin your research on used cars.



What to Know Before You Go Car Shopping


Before you start thinking about fun things like whether you want a convertible or a sports car, you need to do some self-examination. First and foremost, you need to examine your budget. You should set a reasonable price range for the car and begin to eliminate cars that are out of that price range. As a potential car buyer, you need to be realistic, don't fantasize about a $45,000 car when your budget will just barely support a $22,000 price-tag. (I'm being compelled to quote the prices in $ because that's how the dealerships in Ghana use.) Also, remember that trying to figure out a way to buy a car that is outside your price range is really not a good idea. After all, it's not much fun to have a car if you can't afford to go places in it.

Know what your automobile needs are:

  • Do you need to haul heavy equipment? You may want to think about a pick-up truck.
  • Do you have a sizeable family or head up a carpool? You may want to think about a minivan, wagon or large sport utility vehicle (SUV).
  • Do you live in an area where you need four-wheel drive? You may want to think about an SUV with all-wheel or four-wheel drive
  • Do you travel far or use the car rarely? If you log a lot of miles, you may want to research cars that get good gas mileage, like a hybrid car.

There's a vast amount of choices for today's car buyer. Knowing what your automobile needs are is the easiest way to begin eliminating some of those options. Eventually, with some additional research, you should be able to narrow the field down considerably.

In addition to visiting dealerships and garages to do your research, you should also be reading car reviews in magazines and online. You can learn which cars are given high marks for safety, which cars get the best gas mileage, and so on. Once you've narrowed your list down to a few possibilities, you should read as many reviews on those makes and models as you can. Some good places to look for both professional and consumer car reviews are:

Another good way to find out about a car is by simply asking your family, friends, co-workers and neighbors. Among all these people, you're bound to find someone that drives or has driven the make or model you're researching.

Okay, so you've found the perfect car. Before you even think about purchasing it, you need to know how you're going to pay for it. If, by some miracle in today's economy, you have saved enough to pay for the entire car, you will not need financing. But most car buyers today make their purchase by paying a down payment and then financing the balance -- making monthly car payments until the remainder of the loan is paid in full. Remember, that financing is a loan and as with all loans, you have to pay interest. Unless you don't mind paying thousands of dollars in interest, you'll want to make your down payment as high as you can afford. The low Annual Percentage Rates (APR) that dealerships and car companies advertise on television are the interest rates the dealer charges for financing. Often, those low rates are only for people with perfect credit or they are an introductory rate, meaning they will go up after a certain period of time.

Addressing Problems after a Car Purchase

Once you've made your decision (and your purchase), you need to know what to do if you have any problems with your new car. Most new cars come with some kind of warranty. You'll be given the opportunity to purchase an extended warranty. Make sure you read the fine print. You may find that the extended warranty isn't worth the price. If you purchase a used car, it may still be under the manufacturer warranty, but in this part of the world, it is very difficult or even impossible for used car buyers to benefit from any kind of warranty. You just have to be vigilant and just pray nothing goes wrong with the car.. Whatever kind of warranty you end up with, know what is covered and what isn't. For instance, damage to the body of the car may be fixed free of charge under the warranty, but an automatic window that won't go up or down may not.



Written and Edited by: Yaw Baah-Nuakoh™

6 comments