(Newswire.net — April 14, 2023) — Buying your first car can be a really exciting time! If you’ve recently passed your driving test or you’ve been saving up the money to get a car, there are a few questions that you could consider asking yourself before you commit to getting your first car. It can be hard to know which car is right for you and your budget, so the guide below has highlighted 5 important questions that can help make your car-buying journey that little bit easier.
1. Should you finance your first car?
Car finance is one of the most popular ways to help spread the cost of getting a car. There are multiple car finance agreements to choose from and you may be better suited to one over others. It can be worth exploring each in more detail and seeing which one could fit in with your budget. Getting car finance for young drivers is possible but there are always limitations when it comes to car finance, and it is always subject to status. You could consider increasing your credit score before applying for car finance or checking your eligibility for car finance first before you commit to getting a car on finance.
2. Is it better to buy your first car with cash?
Buying your first car with cash can be the most cost-effective way as you can be the legal owner from the start, sell the car when you’re ready and there’s no interest to pay! However, both new and used cars can cost thousands of pounds to buy outright, and for many first-time drivers, having a large disposable income to spend on a car may not be realistic. If you can’t afford to buy a car outright, you could also consider saving some money towards a car finance deposit instead to help lower the cost of financing a car.
3. Should you buy a new or used car?
There are many advantages to buying both new and used cars, but it could come down to budget and personal circumstances to help you decide which is best. Brand-new cars can cost a lot to buy outright and for most drivers, it’s an unrealistic option. However, car finance deals such as PCP can benefit from lower monthly payments which means you could even get a brand-new car for the same sort of payments as a hire purchase deal on a used car. It’s worth remembering that car finance is always subject to status and never guaranteed though. Used cars tend to have a much lower purchase price and may be more realistic for those who have just passed their driving test.
4. Which cars are cheap to insure?
In the UK, each and every vehicle on the road needs a valid insurance premium in place. Failing to do so can land you with a fine and unfortunately for young drivers, insurance premiums can be some of the highest around. New or young drivers are more likely to have an accident in their first year of driving which increases the risk of having to make a claim. Other factors such as the type of car you choose can affect your car finance premiums too so it can be a good idea to shop around for cheap cars to insure to make sure you’re not spending more than you need to.
5. How much did your first car cost to run?
Buying a car can be expensive but drivers will also need to factor in the cost of running a car too. You will need to pay to refuel your car with petrol or diesel or recharge its electric battery to get you to where you need to be. Some cars use more fuel or electricity than others so it can be worth shopping for cars with low running costs if you’re on a budget. You will also need to have your car taxed and rates for road tax can vary depending on the type of vehicle you choose too. You will also need to have a valid MOT certificate in place if your car is over 3 years old and keep up with regular servicing as it can help to maintain the lifespan of your vehicle, both of which you will need to pay for.