- Which car should it be? New or used?
- New or used – you should pay attention to this when buying!
- Financing with a car loan?
- What car insurance do you need?
Small but powerful – the perfect car for students
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Young, wild and independent – students feel that the whole world is open to them. You want to be independent away from parents and live their own different life. In this phase, many would like to seal the step into freedom by buying a car. Because what could be better than driving your own car to the university and being flexible. The question is mainly asked by students who are studying in another city, far away from home. There is a large selection of new and used cars, and the car market is overflowing with special offers for students. But what is the perfect car and what should you look out for when buying one?
Which car should it be? New or used?
Photo 2 and 3: New cars or used cars – both have their advantages
Most students are understandably put off by the purchase price of a new car. However, this is not necessarily true. Because now there are compact and small new cars at affordable prices and with high discounts. In addition, one can fall back on many favorable financing options, such as leasing, so that the purchase of a new car for students is quite possible. Those who pay in cash often get a discount on the list price. The used car alternative also has its advantages. They are cheap and how many car buyers in Germany confirm, there are numerous models and car brands. There may even be an older green version of the dream car. However, many of these bargains are rust buckets at second glance. And whether they meet today’s environmental standards is another question. According to TÜV Süd, anyone looking for a serious offer and a usable used car should first look through the advertisements in local newspapers and advertising journals. If you are unsure, you can use the ADAC database for guidance. There is a price list for used cars. In general, buying a car should be carefully considered. If you buy a new car, you may pay a little more at the beginning, but you will be spared high repair costs in the long term and you don’t have to worry about whether you can pass the next TÜV inspection. A good middle ground is the annual car. This is a maximum of one year old, in good condition, well run in and up to 30% cheaper than a new car.
New or used – you should pay attention to this when buying!
What the buyer should definitely bring along is negotiating skills – this applies to new and used cars. If you don’t have a talent for negotiation, it’s best to take a fellow student with you who studies economics or business and also helps to select cheap providers. Searching the internet is definitely helpful. The seller can be a brand dealer or a private individual. The best offers are anti-seasonal. This means that it is cheapest to buy a car in winter or autumn. Basically, the car should come with a warranty and the dealer should assure that the car is workshop checked. But trust alone is not enough. A test drive should not be missed and an inspection and check of the car for defects is necessary before the conclusion of the purchase contract. The purchase price from brand dealers is higher than from private dealers, but they meet all the conditions and you are on the safe side. Which type of car you ultimately choose is up to you. However, prices should be compared carefully.
Image 4: Before buying a car, always test drive and inspect the car
Financing with a car loan?
As a student you don’t earn big money yet and the savings account doesn’t quite provide what is needed to buy the car. Many think of a car loan for financing. However, this is difficult to obtain. The credit institutions only grant loans to people with a regular income of more than 1,000 euros. A guarantor, such as a parent, is therefore necessary. But with the loan come the repayments and they are not always cheap. So that the student does not overdo it, he should first try to borrow money from the family to buy the car or talk to the car dealer and ask about financing. The rates are more attractive here than with a car loan. The disadvantage is that you cannot resell the car until it has been paid off in full.
More information on car loans is available at German credit institute available.
What car insurance do you need?
As a student you need everything from household contents insurance and private liability insurance to health insurance numerous insurance companies, which of course have to be paid in monthly installments. When you buy a car, there are even more types of insurance:
1. Motor vehicle liability insurance
2. The comprehensive insurance
3. Letter of Protection
4. Personal Accident Insurance
5. Traffic legal protection insurance
Motor vehicle liability insurance is compulsory in Germany. There are numerous policies and offers. However, the price depends on the model. Before buying a car, the student should check which type class the dream car belongs in so that he doesn’t suddenly have to pay a large sum afterwards. The accident-free years are also included in the classification. Since most students are still very young, it is worth registering your own car as a second car in the name of a parent. A price comparison saves even more money. Stiftung Warentest calculates the premiums for various models every year. There you can create a car insurance analysis.
The comprehensive insurance is divided into partial and comprehensive insurance and is advisable as a student, as it insures the car against damage caused by yourself or someone else. The accident insurance is nothing more than accident insurance that promises help in the event of a breakdown or an accident. It too is necessary. Passenger insurance is usually superfluous as most risks are already covered by one of the other insurances. Traffic legal protection insurance is only worthwhile for students who drive a lot and far. Otherwise you can do without them.
image sources
Image 1: Pixabay © herriest (CCO Public Domain)
Image 2: Pixabay © jarmoluk (CCO Public Domain)
Image 3: Pixabay © blickpixel (CCO Public Domain)
Image 4: Pixabay © jeshoots (CCO Public Domain)
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