It’s an exciting time to purchase a car, whether it’s your first or your fourth. With that said, there will be many different factors to consider before making the purchase. This article will cover some of these, but you must do your own research too so that you’re fully confident about it before buying. Let’s begin.
Know Your Budget
One of the first points to consider is how much you actually want to spend. Buying a car will be one of the biggest purchases you’re likely to make apart from buying a house. There are plenty of online guides to help you understand how to budget for a car, and you should ensure you are doing your research before rushing into anything.
You will need to consider your personal circumstances first, whether you plan to purchase a car outright, or whether you plan to pay it off over time. It will also help if you have an idea if you’re purchasing a new or second-hand car. Sometimes, you may be able to negotiate the price down slightly.
Consider The Associated Costs
It’s also important to think about the associated costs of purchasing and owning a car. It won’t just be the money spent on the car, but also running costs. You may not be aware of costs you will have to pay if you’ve never owned a car before. For example, you will have to pay an annual road tax, which can change year to year. There are a few different ways to set up this payment, from going to your local post office that deals with vehicle tax to setting up a direct debit payment online.
Another major cost that you’re probably familiar with is fuel. The price of fuel can vary, with it recently hitting record highs. With this in mind, you should consider how much it could cost you each day and week to run your car, and if it’s an expense, you can afford so often. Your car will be no good to you without fuel.
You will also have to think about car insurance. Many types of car insurance are available, and you will need to know what policy is relevant to your interests. You should get a few insurance quotes and compare them to save money both in the short term and long term. CompareNI.com can compare car insurance quotes from over 80 providers, allowing you to find the cheapest and most relevant insurance for your needs. Be aware of the costs before purchasing a car, so you’re not surprised later on.
Work Out Your Trade-In Value
If you currently drive or own a car, you should consider what you’re currently using it for and why you want to purchase a new one. If it’s not broken, then it may be a bit early to replace it, but there are options. If it’s in decent condition, then you might be able to sell it or trade it in to get some money knocked off the new price.
It’s unlikely you will get the same money you paid for this car, especially if you bought a brand new car straight out of the dealership. That’s because new cars will drop around 15-35% of their worth in the first 12 months of ownership. This figure will continue to rise to around 50%+ over the next three years, so you should be aware of that when purchasing new cars in general.
For this reason, many people choose to purchase a used car instead of a brand new one, as it will save them money and still give them a good vehicle option. Of course, this is also a better investment overall, as you won’t lose as much and could even make a profit if you put the work in.
If you can get a decent trade-in price, this will help you purchase your new car. If you are paying through finance, then you may even be able to upgrade your car at no extra cost from your monthly payments. You could also look into selling your car privately, either to someone you know or via an online marketplace, in order to raise appropriate funds.
Consider Family Needs
Before you rush down to the dealership to purchase a new car, you should consider your and your family’s needs. For example, will you need a car for yourself, or will your partner also need it for their own work? If you have children, will you need to fit them all into the car for the school run, or will they take the bus?
For these reasons and more, you should ensure you are deciding what type of car you need as a family, at least with the adults involved. You will need to ensure that you are at least getting a car that is suitable for your needs and has enough space for the whole family. It may be smarter to get a slightly bigger car than what you think you need, just so that you’re covered slightly more.
