Consider ‘depth’ of your pocket when buying a car

Last week we published a story about factors to consider when buying a second-hand car.

In this follow-up article, we look at the type of car that you should choose based on how much you earn; net-income versus disposable income and other sources of income.

A car is expensive and can easily become a financial problem for you.

To avoid being in a financial mess and to save money, consider many factors below.

• The price at which you buy your car will determine how much you will pay towards  maintenance, fuel and insurance.
• Purchase price — the more expensive the car, the more you can expect to pay towards the car ownership.
• Car maintenance varies depending on the type (make) — European and American cars are expensive to maintain unlike ex Japanese.
• Servicing price of cars at garages varies from type and service kits prices are difèrent too.
• Cars have different specialised needs depending on type.
• Engine capacity determines the fuel which your preferred car will consume.
• Engine type (petrol or diesel) and fuel price must guide you.
• The distance you will travel (vehicle primary use) must be considered too.
• Depreciation is overlooked by most people yet it is very important because the car will lose value over time.
• Cars depreciate at different rates depending on the type.
• Insurance adds to the car ownership cost. It depends on the type of car and driver's risk (age and sex).