Top Tips on Choosing Your First Car
You have passed your test! Congratulations, it is now time to get out on the road. But first, you need to choose your first car. With options such as brand-new models and second-hand vehicles, there are ways to purchase a car that can suit all budgets. To help you get started, we are providing you with our top tips for purchasing your first car.
Set Yourself a Clear Budget
The first step to purchasing your first car is to set yourself a clear budget. You want to be realistic about this budget as you will need to afford not only the car itself but the running costs. Should you opt for an expensive first car, you run the risk of insurance and road tax being too high for you to afford. As a result, you should look into the model of car that you want before committing, as this can help you to calculate the costs more effectively.
Find a Reputable Seller
When you have looked at the range of cars available to you in your price range, it is important to find a reputable seller that will provide the car that you want. By buying your car from either the manufacturer directly, an associated dealership, or other reputable car sales business, you have some form of security when purchasing a car, more so than buying privately. You should consider your options as many reputable businesses will carry warranties with the vehicle. This will ensure it is in the best working condition at the time of purchase and is covered from point of sale. You may even find a better deal with smaller reputable companies than going straight to the dealerships.
Address Finance Opportunities
When you have chosen the car you want, there is then the decision of choosing a finance opportunity. These are on hand to provide those who can’t afford to by the car outright to pay monthly instalments. This has become a popular form of finance for those that are new to driving as CCJ Car Finance and other finance options make monthly repayments affordable. There are several finance options available to you when purchasing a car, these are as follows:
Hire Purchase – This is similar to a personal loan that uses your car as security for the loan amount. This means that the car will be taken away if you are unable to pay back the loan. These loans normally require an initial deposit of 10% followed by monthly repayments until it is paid off. Following the loan being paid off, the car is yours to keep.
Personal Contract Purchase (PCP) – Though this may seem similar to a higher purchase because of the initial deposit, there is a slight change in the way the loan is paid back. When paying back this loan you never own the car. You are paying back depreciation on the car. In order to own your vehicle outright, you will be required to pay a balloon payment at the end of your loan term. Alternatively, at the end of the loan term, you can swap the car for a different one and take out another contract.
Shop Around for The Best Deal
Before committing to anything, it is important to shop around for the best deal. Though this is a process that can take time, this will ensure that you can find the best interest rates for your credit rating. This is crucial when organising finance options as it will ensure that the monthly repayments on your car are as affordable as possible.
Whether you are looking for a new car or you are looking to finance a quality used car, we are sure that you will find a finance package that works for you as a result. This will allow you to get out on the road and enjoy your freedom whilst maintaining the monthly repayments.
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