A car is a vital thing for many households across the country, remaining the single most common form of transport in the UK by a wide margin. Whether you rely on private transport for your morning commute or to get your family from A to B, choosing your next car is always somewhat stressful – and made even more so by a cost-of-living crisis that threatens savings accounts and weekly budgets everywhere. With less in your pocket to get a new car, how can you make your money count?
Create a Budget
As with any large-scale purchase, a wise first step for you to take is to set out your budget in advance. This budget won’t just take into consideration the cash you have immediately available for a purchase, but also the amount you can spare on a month-to-month basis.
This is in part because one of the more common ways to stretch out the financial impact of a car purchase – at least, a new one – is to seek monthly repayment terms, whether through loans, financing or even a lease. But your budget should also take into account running costs for your car, including fuel and insurance. Certain types and models of car may encourage less expensive insurance premiums, while others may be vastly better for fuel economy in the long term.
Essentially, budgeting gives you the tools to attach tangible value to variables between cars. This means you can make a shrewd finance-based decision when picking between models.
Set Your Priorities
Speaking of variables, it can be easy to get trapped in a cycle of looking for cars with the perfect set of attributes for your needs. However, when cost enters the equation, it is likely that the car you would like is not necessarily the car you can afford.
As such, you should create a list of priorities for your car, in order of importance – and be willing to forsake less important elements to meet your core needs. If you are looking for a vehicle to accommodate your family and the school run, for example, space will be a key priority. This list of priorities can help you reduce costs, by rejecting costlier cars from your search.
Buy Used
One of the more effective ways to reduce your costs in buying a car is to limit your search to used markets. Cars depreciate in value significantly after leaving the showroom, and can often be found in great condition for a major discount on their retail price. There is also the immediacy of buying used; cars can be driven off the lot same-day, allowing you to make the most of private transport sooner.
Time Your Purchase
Lastly, there is something of a seasonal element to buying a car – especially when it comes to the financial side of larger showrooms and used car dealerships. Car salespeople will be keener to strike a deal at the end of the month, and even more so at the end of each financial quarter; many will have individual sales targets to reach, meaning you can push harder for reductions in retail price or even add-ons to sweeten the deal.
Leave A Comment