After buying a new car there are two things in the buyer’s mind – how to protect the value of the car and how to contain the cost of repairs? There are some statutory expenses that you have to bear at the time of buying a car – the cost of registration, taxes and duties and the cost of car insurance. If you are buying a used car then you have to bear additional expenses of title transfer. It is important to know how much you have to spend over and above the cost of the car as it helps to work out a budget for buying the car. After all, you have to comply with the legal requirements besides taking measures for financial protectionto recover the cost of damages that can happen to the car.
Get the car registered
As per law, every new car that rolls out from show rooms has to be registered with the Department of Motor Vehicles. To help you drive the car legally, the dealer will provide you with a temporary registration that is valid for 30 days. This is to be followed by the permanent registration for which the bill of sale has to be presented to the office of the DMV and the title of the car has to be signed. It involves some paper work that the dealer from whom you buy the car can get it done for you as you have to sign the papers only. You will be given a license plate and documents related to the registration showing you as the owner of the car.
Get car insurance
As soon as you drive out the new car with temporary registration, the law stipulates that you have to take a liability insurance which is generally known as car warranty insurance. The dealership supplying the car can help you to buy car insurance or you can buy it from any insurance company of your choice. Car insurance policy purchased from dealers can be costly. Besides the liability insurance, you can take cover of collision and comprehensive car insurance that provides total protection of your car against damages. A combination of the right kinds of car insurances can save you considerable money in the event of an accident.
Get GAP insurance
If you are borrowing money from financiers to buy a car then besides having the insurance cover for damages get GAP insurance, too. Cars have high rate of depreciation and its value reduces rapidly. A car may lose up to 60 percent of its value by the third year. During this time if the car is damaged badly in an accident or is stolen then the insurer will pay you the book value of the car, considering it as total loss. The payment will be far less than what you owe to the lenders. Having GAP insurance will take care of this shortage so that you are financially protected against any loss.
The process of car buying is deemed to be complete only after you have gone through the process described above.