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Protecting your Bank Balance when Buying a Car

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Buying a car is one of the largest purchases you make in life. It’s no surprise you’ll be concerned about cost and want to keep it to a minimum through getting a good deal.

how to save money when buying a car

 

Make sure you’re making the right decision and try not to run head over heel into a deal that has too many conditions. You don’t want to be paying more than you bargained for.

Let someone else take the financial hit

As soon as you leave the showroom, your car will be worth a lot less. After 3 years, your car will be worth 30-40% less than the price you paid for it.  So you can get a car that's in mint condition, with only a few miles on it for 40% less than if you were the one to use it for a few weeks just by purchasing a nearly-new car instead of brand new.

Be smart about your budget

Being able to afford the car you want is one thing, but, affording the running costs is another thing. May people don’t take into consideration the running costs that are added on top. The annual cost of running a new car is $12,027 compared to an annual cost of $5,806 to run a used car.

These figures include the fuel, insurance, vehicle tax, maintenance and depreciation costs. Although used cars typically cost more to run, a new car is affected by depreciation on a much greater scale.

Be clever when using finance

Two studies show that 47% of people who have taken out car finance don’t realise how much they’ve borrowed. As well as that, 90 % of people also don’t understand the terms of their contract which can land them in owing more money.

Browse online for a good deal

Finding a car can be a lengthy process that’s time consuming and time is money after all. Looking online enables you to browse quickly and at your own pace. Even if you don’t purchase your car online, it’s a good way to get a feel for the average price you should be paying. Online websites allow you to compare prices efficiently.

Figure out if car dealerships are for you

Dealerships can supply you with finance options which are handy for those not able to afford the entire price of the car. Dealerships are seen as overpriced due to them buying the car for more than they bought it for to make a profit. To get a good price you’ll need to be comfortable with their hard sale tactics and be able to haggle the price.

Pick a model that holds its value

Some models depreciation cost happens a lot quicker and more drastically than others. You don’t want to have lost out of loads of money when you come to sell it on. Be smart about it. Cars like Nissan, Kia and BMW tend to lose more of their value after 34,700 miles in comparison to Mini, Audi and Volkswagen.

Get a reasonable deal for your insurance

You’ll need to research how much the insurance will set you back. When looking for your insurance options take the below eleven things into consideration.

11 Ways to cut the cost of your insurance

Don’t assume third party insurance is the cheapest

Add a 2nd or even 3rd driver

Paying annually will decrease the price by £100 or more!

Never auto renew your policy

Don’t modify your car

Only buy add on’s if they provide value

Select the right excess 

Use long lasting quotes and lock in the price

Don’t wait for renewal - the best price will be offered 4 weeks prior and steadily rise until renewal date

Join the electoral roll

Check different variations of your job title as some job titles get cheaper insurance

In short, you should start using car insurance comparison websites such as comparethemarket.com about a month before your renewal is due and if possible lock in the price, use all of the above tips to get the best price possible and if you can, pay yearly.  You will literally save £100s

As always if you know of any other ways to save cash when buying a car, please let us know in the comments below...

 

 

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