1. What is your immediate need for a car?
  2. Is the car the most important of your financial needs right now?
  3. What of your other commitments? How does the car rank compared to these?
  4. Have you considered ‘your cashflow vs requirements during the period you want the loan for?’
  5. Are you considering this purchase due to societal pressure? Is it because your friend has a car or do you really need a car?
  6. Is it a used car? If so, what state is it in?
  7. Once you start using the car – you will need to fuel and maintain it. Have you considered these costs?
  8. What of licensing fees? And change of ownership costs. Have you worked it into your landing costs?
  9. Will the car deplete or increase your future cash flows?
  10. What is the full monetary value of the car? What value will it add to your present financial situation?
  11. Have you saved up for the car? If so, what percentage of the cost of the car have  you raised from savings?
  12. Will you be considering other loans during the period of the car loan?
  13. Have you done a written (not mental) tabulation of your income and expenditure for 4 months before the car decision and four months after the decision?
  14. Have you checked multiple vendors to know cheapest offer available?
  15. Can the vehicle type be easily repaired? Are the spare parts of the vehicle model available locally to enable you quickly fix repairs?

5 TIPS to consider when considering purchase of a USED vehicle.

  1. Make sure you fully understand the functionality of your car choice.
  2. Get a reliable auto mechanic to test and value the car for you.
  3. Get enough history on the car performance from the previous user.
  4. If possible, understand why the previous user wants to sell off the car.
  5. Have a chat with someone who has used or is using the same car model.

Contact Financecoachtoday@gmail.com for free support.

8 COMMENTS

  1. Helpful questions indeed. Some will just go and buy car without asking themselves what are the most pressing needs before buying a car and at the end, they will start regretting on why they bought the car cos car needs to be maintained and with money.

  2. Five things I learnt to consider on the purchase of a used vehicle includes the following;

    1. know why the owner wants to sell of the vehicle
    2. Ask questions about that particular model of vehicle you want to purchase to to know the limit of it’s functioning
    3. Consider your purpose of purchasing the vehicle if it will be of a help to that
    4. call an auto mechanic to test the vehicle and also to know whether the parts are still in used in case if any problem arises thereafter.
    5. before you make any move towards something, ask questions, gather more information before jumping into conclusion.

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