Buying a new car can be an exciting time and it’s really tempting to jump into your next purchase head first. Make sure you’re not rushing into any decisions! To make the buying process a little easier, we have compiled a list of 5 things that you should think about before buying your next car…
1. What do you need from your next car?
Enough room for the kids? Large boot space? Petrol, diesel or hybrid? Manual or automatic? Before you start looking, make sure you know what you need. It saves a lot of time and filters down your options straight away.
2. Are you buying at the right time?
New registrations come out in March and September every year. This can work to your advantage if you want either new or used. Many dealerships have great introductory offers on their new cars. But also, the customers who want a new car will more than likely part exchange their old one which usually increases the number of used cars for sale!
3. How will you pay and what is your budget?
Determine how much you realistically have to spend on your car and factor in other payments such as insurance, MOTs, road tax, fuel and more! Buying with cash is a great way to get a car, it means that you own the car and aren’t tied down to monthly payments. If the finance route is for you, you could calculate your car loan before you even apply and see what rate you would potentially be offered before browsing through a range of cars!
4. Have you done your depreciation research?
If you’re buying a new car, it’s worthwhile doing some research on the depreciation values. Did you know that a new car loses almost 50% of its value within the first 3 years? This means when you come to sell it later on, you could be offered half what you paid for originally. There are many things that contribute to a cars depreciation rate including mileage, number of owners, fuel economy, service history etc. If you’re unsure, you can use find out the estimated depreciation cost of a car with The Money Advice Service.
5. Should you go solo or take some support?
For many people, buying a new car can be quite daunting, especially when visiting a dealership. If you feel confident enough to do it alone then great! But if not, taking someone with you is a good idea. They can provide support, make sure you’re getting the best deal and spot any problems that you may not have!