Buying a new car? Here’s what you need to look out for
If you’re looking for a new car, the market might feel like a lot to comprehend.
With soaring prices pushing the cost of EV charging closer to driving a petrol car for some, it’s becoming harder to choose a cost-effective option, too. We’ve outlined a few of our top tips to help steer you in the right direction.
- Consider your needs
The type of car you realistically need might be very different to your dream car, but this doesn’t mean you should compromise on quality.
Buying a brand new car will be much more costly than opting for a used one instead. Since it’s unlikely that you’ll need a new car, choosing a second-hand or nearly-new vehicle could be a much more effective way to spend your money.
- Why choose a new car?
Firstly, think of the guarantee. Most new cars will come with a warranty, meaning you won’t pay for essential repairs for the time that the warranty is in place.
The cost-of-living crisis in the UK is creating a danger to road safety, with some drivers of older cars unable to afford repairs. New cars are much less likely to break down or need costly repairs.
The look of a new car can be enticing, but you shouldn’t choose your new motor just based on aesthetics or trying to impress your friends. Focus on performance and long-term value instead.
- Benefits of buying a used vehicle
Brand new cars are often much more expensive than their older counterparts. However, it’s still possible to find attractive, reliable, and high-quality used cars on the market, even if searching for one might take a little bit more time and effort.
Most new cars depreciate in value as the car gets older, meaning that you won’t get as much money for your car when you sell it on. But if you’ve chosen an older vehicle with a lower price upfront, you won’t need to worry as much about it deprecating.
- Purchasing options
There are many payment and financing options when it comes to getting a new motor.
Financing deals with the dealership mean you can pay off the car on a monthly basis, paying back a set cost plus interest to the dealer. When you make the final payment, you’ll have full ownership.
Some of the cheaper car loan options compete with financing plans on interest rate. These will allow you to purchase the car with full ownership of the vehicle, then repay the loan over a fixed term. However, always make sure you can meet these monthly repayments before considering a loan.
Finding the right time to buy
Lastly, during certain times of year, you might be able to get a better offer on a new car. Salespeople in dealerships need to hit quarterly/monthly targets, so you could use this to your advantage.
Aim to avoid looking for a car right at the start of the month when sales targets aren’t under any pressure. If you try to look for a car at the end of each financial quarter, you’ll find the best deals.