Buying a new car can be a costly matter. Most people can only have sufficient savings to pay for 10% – 20% of the total car price. The balance is usually paid by financing the car. Car financing decision done right can lead to potential savings in the future. Although there are savings to be had on Audis, so be sure to compare new audi prices if that is the motor you’re considering.

One unconventional way to finance your car is to sell your old car privately as opposed to trading the car in. It is time consuming to sell the car privately as right buyers are hard to locate over night. Although trading in the car is more convenient, you do not get the maximum value out of your old car. By surveying the market, you can determine the current value of your old car. However, if your car current market value is almost similar as the value you obtain from a trade in; the better option is the trade in or part exchange.

The more well known way of financing your car is a car loan from the dealership. Out of all the car sales a dealer makes, 65% of them takes up the dealership car loan. Dealers usually offer car leasing also known as hire purchase agreement. In this arrangement, the customer signs a contract to pay a monthly amount for the next three to five years. At the end of the paying period, the customer will legally own the car

Instead of obtaining a car loan from the dealership, banks offer personal car loans as well. As opposed to the hire purchase agreement, the bank car loan allows the borrower to be the owner of the car at the point of purchase. In deciding on a bank car loan, one should make comparisons of the interest rate and its terms and conditions.

One must note that a car is a depreciating asset. It is said that once the car leaves the dealership, its value drops by RM 10,000 (equivalent to USD 3,225). Some people are in the opinion that it is financially unsound to be paying for an asset that does not appreciate in value. Therefore, there are those who choose to buy a second hand car or revamp their existing car to prolong its use.