![A Quick Guide to Buying a New Car](https://usercontent.one/wp/www.techregister.co.uk/wp-content/uploads/2023/01/A-Quick-Guide-to-Buying-a-New-Car.jpeg?media=1700263132)
When it comes to buying a new car, there are all sorts of things to think about, which can make the whole process stressful and overwhelming. So, with advice on what to consider, here’s a comparison site for cheap car insurance in the uk, mustard.co.uk.
Set a Budget
There’s no getting away from the fact that cars aren’t cheap, especially if you buy a brand-new one. Nevertheless, buying new does usually mean you’ll get a longer warranty, typically three years although some manufacturers offer seven. The downside is that brand-new cars depreciate considerably and can lose up to 60% of their value after just three years.
With that in mind, it’s worth considering buying a nearly new or used car instead. If you buy from a dealer, they’ll usually offer a 12-month warranty too. Buying nearly new can also help your money go further and you could end up with a much higher specification car compared to buying a brand-new one.
Consider the Type of Car You Need
Unless your budget extends to buying your dream car, it’s a good idea to prioritise the features you actually need (over those you might want if money were no object). For instance, if you spend a lot of time behind the wheel and cover numerous motorway miles, comfort may well be a priority. Similarly, a car with a bigger engine will mean greater acceleration whereas smaller cars could struggle.
Plus, if you’ve got a young family, think about boot space for pushchairs and shopping, and work out if there’s enough room for all the car seats you need in the back.
Calculate Maintenance Costs
Maintenance costs are easy to forget in the initial excitement of buying a new car, but they can catch you out if you’re not expecting them.
To keep your car running as well as it can, it will need regular servicing. Your local dealership may offer servicing programmes which can help you budget. Plus, if your car’s more than three years old, you’ll also need to factor in the cost of an annual MOT.
Another ongoing cost is car tax (vehicle excise duty) which is based on your car’s CO2 emissions; you can work out what you’ll owe at GOV.UK. It’s also worth finding out how much replacement tyres would set you back too, as these can sometimes be an unexpectedly hefty sum.
Work out How You’re Going to Pay for Your Car
Most car dealerships will offer finance packages to spread the cost of your new car. One of the more familiar methods is hire purchase (HP) where you pay a deposit and then pay for the remainder in fixed monthly instalments.
Alternatively, car dealers also offer something called PCP, short for personal contract purchase. Under this arrangement, you’ll pay a deposit and make fixed monthly payments for an agreed length of time (typically, three years).
When the contract ends, you can make a final payment so that you own the car (this amount tends to be much larger than previous instalments). You can also choose to use the value of the car and part-exchange it for another, or you can simply hand the car back to the dealer and walk away.
If you don’t want to take out car financing, you can consider a personal loan which will enable you to pay for the car outright but pay the bank back instead. Another option is to use a credit card depending on your credit limit.
Don’t forget that with any loan agreement, you’ll need to make sure you meet your monthly repayments. If you don’t, your car could be taken away and it could affect your credit score which can mean you struggle to get credit in the future.
Compare Car Insurance Quotes
Car insurance quotes are based on a number of factors including your age, address and job. Another important factor is the insurance group your car belongs to; there are 50 in total, with lower groups being cheaper to insure.
These groups are based on the car’s value, the cost of repairs, as well as safety and security features. You can check the insurance group with the dealership but as a general guide, you’ll pay lower premiums on smaller, less powerful cars.
To find out how much car insurance could set you back, you can search for quotes online at sites like mustard.co.uk. Or, if you prefer, you can speak to an expert advisor on 0330 022 8825.