Buying a car is a huge investment, in fact, it is the second biggest thing we will ever invest in after buying a house. It’s important to buy a car that you can actually afford and not one that will cripple you with debt.
Yes, buying an affordable car is possible and we have put together 7 tips that will help you to save money when it comes to buying your next car.
Seriously before its time to buy your first car or upgrade your current car, do some saving. Work out a weekly or monthly budget putting aside the money you can use towards the car. This will help you evaluate how much you can afford to pay monthly for the car and what you can comfortably afford. Make some small changes in your life such as making your own lunches and you will soon find extra cash to save.
Like with everything in life shop around and do your research. Websites like Cazana give you a valuation of a car and gives you a good indication if the car you are buying is overpriced. It also allows you to search used cars for sale, so if you are looking for a second-hand car this is a good place to browse. Other good places to search for cars online are AA cars and Piston heads.
Look at forums and what other car buyers are saying about the particular car you want to buy and you can also watch review videos on youtube and WhatCar.
Seriously consider your finance options and what the pros and cons are to each option. Car finance options include a personal loan, cash, hire purchase, contract hire and purchase contract plan.
The cheapest option is, of course, to pay in cash if you can afford it.
Does the car need to be new? If you opt for a used or nearly new car you can save yourself some money. New cars depreciate at a much higher rate than used cars and you will feel this when it comes to reselling the car.
Another benefit of buying a used car is there is much more choice available.
If you are buying a used car make sure to do your research on the car and get a full car history check from websites like Cazana. This will give tell you if the car has ever been written off, if it is stolen or has outstanding finance on it. It will cost you a couple of quid in the short term but can save you money in the long run, by ensuring you don't end up with an old banger.
Don't just accept the price advertised, haggle it down. Offer the dealer a price lower than you're willing to pay. Don't be afraid to walk away and don't fill the silence. Everything should be up for negotiation and you should always negotiate, bring someone wot you to the dealership if you are not comfortable doing this on your own.
If you are buying a new car trade in your old car for credit against the new one.
A bargain may not be in your area, extend your search and you may find the perfectly priced car if you are willing to travel a bit further for it.
Have patience don't just go with the first car you see, as I mentioned previously shop around and do your research.