If you’re anything like me, buying a new car is a rare treat. Having only owned a few cars in my lifetime, getting new wheels comes with both excitement and trepidation. Of course, I can’t wait to experience the thrill of a new model, however, buying a car is a huge and costly decision. To help you make the right choice when the time comes, I’ve shared some tips on the car buying process.
Decide what you need?
This step may seem daunting but broken down it’s actually pretty simple. Think about your day to day life and make a note of what features you use or would be useful in a car. For example, if you have three children, who are all still in car seats, you need to look at which cars can accommodate this. Whereas if you use the car more for work and regularly travel to different places, a satnav may be a must. Are you into your car accessories from ExteriorAccs? If so what options would you like?
It’s also a good idea to consider your fuel options. Diesel may have received a lot of bad press recently, but it is probably still the best option if you travel a lot of miles. If this isn’t a worry, then petrol, hybrids and even fully electric cars may be worth considering.
How will you finance your car?
Have you saved up for your new vehicle? Or like most people in the UK will you be looking to finance your new car. The good news is there are now more options than ever which help to make buying more affordable.
When buying a new car, it’s important to understand the invoice price, which is the amount a dealership pays to the manufacturer for a vehicle. This price can serve as a valuable tool in negotiating the final cost of a car. To find the invoice price of a car, one can use resources such as https://invoice-pricing.com/. Once you have a better idea of the car’s cost, it’s important to consider how to finance the purchase.
Hire Purchase (HP) is the option that is most similar to a traditional bank loan. You pay off the full value of the vehicle over an agreed number of monthly payments. However, HP can be quite expensive compared to Personal Contract Purchase (PCP). With PCP, you only pay towards a portion of the car’s value, so the monthly payments are lower. At the end of the agreement, if you want to own the car, you can make a lump sum payment on the remaining value.
If you aren’t in the best place right now regarding money and your credit, then that doesn’t mean you’ll be at a dead end. There are plenty of bad credit car finance firms around that will take a look at your situation and provide a positive result. Spending money on a car can be quite a tedious experience, so you’ll want the right people around you as you get through it all.
Part-Exchange
Don’t forget that many car dealers will take your old car in part-exchange and use it towards your deposit.
New or Used
Having previously owned used cars, I was surprised at how affordable new cars are. Many manufacturers offer their best deals on brand new cars.
New cars often cost less than used cars to run too. They don’t require an annual MOT (until three years old) and any problems are likely to be covered by a warranty. On top of that, you can often add service and insurance packages, so all motoring costs other than fuel are taken care of. For any busy family having just one monthly payment can be a godsend as you know exactly where you are with your finances.
Additional reading:
- When buying a car it’s important to know about the shelf-life of gas in a tank
- Mistakes people make when buying a car
- How to buy a car online
You may find this other post useful on how to drive safely with a car checklist.