Protecting your Bank Balance when Buying a CarDisclosure: This post may contain affiliate links
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.
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...