One of the greatest joys that comes with the first job is the ability to own a vehicle. The following are some crucial things to remember when selecting your first vehicle as a new entrant to the workforce.
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Purpose and Usage
The first thing to consider is what the vehicle will be used for. Is it mainly for the daily commute or pleasure trips? How many passengers and/or luggage need to be accommodated?
Type of vehicle
Depending on the purpose and usage, you must decide whether you need a two-wheeler or a car. Then there are the various subcategories to choose from. For example, a car could be a hatchback, sedan, SUV, etc. Typically in India, first-job starters tend to buy two-wheelers.
Budget
Do not consider only the upfront cost of the vehicle but also the cost of ownership. These include insurance, fuel, repairs and maintenance. Will it work out in your monthly budget?
Fuel Economy
In general high-performance vehicles offer poor fuel economy. If the primary purpose is the daily commute, a vehicle that provides good fuel economy will save money in the long run.
Reliability
Certain brands have stellar reputations when it comes to reliability. One must research the model one is considering thoroughly.
Safety Features
One cannot put a price tag on safety. Always buy the vehicle with the best safety features in your budget.
Resale Value
When it is time to replace or upgrade the vehicle, a good resale value is helpful to put a down payment for the new vehicle. Consider brands and models known for high resale value.
Loan Repayment
While it can be tempting to buy a higher-end vehicle using financing options like vehicle loans, one must carefully consider the impact of the repayment on one's liquidity. Avoid stretching beyond your budget.
Consider pre-owned
As vehicles are depreciating assets, they tend to lose most of their value in the first couple of years. A used vehicle in good condition may make sense as it may be available at a hefty discount compared to a brand-new one.
Individuals starting their first jobs should remember these points to make an informed decision while choosing their first vehicle.
