It’s no secret that buying a car is expensive. With the cost of living increasing, it’s more important than ever to manage your money and make your cash stretch further. In this handy guide, we’ll offer some top budgeting tips to take the stress of finding your next car.
Get Quotes for Part-Exchange
If you own a car and you’re thinking about swapping it, it’s wise to get some quotes and consider part-exchanging the vehicle. This will reduce the cost of buying a new or used car and it may enable you to choose from a wider range of vehicles. It’s always beneficial to get at least three quotes before you decide which offer to accept. Do some research online to get an accurate idea of how much your car is worth.
Explore Finance Options
Buying a car on finance is increasingly popular. More and more drivers are taking out a loan or signing a lease contract instead of buying a car outright. It’s a good idea to explore all the options open to you before you decide which path is best for you. If you want to own a car, and you have enough cash to purchase the vehicle outright, this could save you money in the long run.
If you want to buy, but you don’t have sufficient funds to pay the total price upfront, you could pay in installments. If you don’t want to own a car, lease contracts are ideal. You can sign an agreement, usually for 2-5 years, and pay a monthly fee to use the car. At the end of the agreed term, you can hand the car back and then decide whether you want to buy or lease another vehicle.
If you are thinking about buying on finance, and you’re going to take out a loan or agree to pay repayments for a period, it’s crucial to analyze your finances first and make sure that you can afford the car. If you miss payments, this will affect your credit rating and you may be charged.
Set a Budget
Buying a car doesn’t just involve paying a sum upfront or agreeing to a monthly payment. You’ll also need to add expenses, including auto insurance, fuel and maintenance costs. Set a budget that covers everything to prevent overspending. If you know how much you can afford when you start your search, this will help you narrow down the options and eliminate the risk of falling head over heels for a car that you can’t afford to buy or lease.
Create a Wishlist
Every driver is different, and what matters to one person might not be a priority for another. When you’re shopping for a new or used car, think about the type of vehicle you want, your budget and added extras or features you’d like to enjoy if you can afford them. It is worth bearing in mind that high spec models cost more and that enhancing your vehicle with 4×4 rims, custom paintwork or modifications will increase the price. Create a wishlist and carry out research to find out what you can get for your money.
If you love driving, and you’re desperate to find a vehicle that has all the bells and whistles, it may be best to focus on used vehicles if you can’t afford a brand new car.
Shop Around
Shopping around is a golden rule for motorists looking to reduce running costs and save money on buying or leasing a car. Contact different dealerships and visit showrooms to get quotes and compare prices before you decide which car to buy, and use Internet comparison sites to find the best insurance deals. Using comparison sites, you can enter the vehicle make and model and compare policies from different providers. You can filter the results according to the level of cover you want to buy. In most cases, the more comprehensive the policy, the higher the cost, but this is not always the case and it’s worth taking the time to search for deals. Insurance providers will often save the best offers for new customers.
Shopping for a new car can be fun, but it can also be stressful, especially if you’re on a budget. There are ways to make budgeting easy. Before you start looking for a new or used car, get quotes for part-exchanging your current vehicle, set a budget that covers all vehicle expenses and explore financing options. Shop around for the best deals, make a list of priorities and compare offers and prices on lease contracts and insurance plans.