Buying a brand new car is undoubtedly an exciting experience, whether you’re part exchanging your beloved car because you’re ready for an upgrade, or you’ve just received a big bonus from work, so it’s time you treated yourself. A significant transaction like this is also a big investment, so it’s understandable if you’re worried because you have little experience. Luckily, you don’t need to be an expert at cars or buying them to get a good deal.
Our guide is designed to help you through buying a new car, right from your budget, through to going to a dealership and picking up the keys! Read on for tips and advice you must consider when buying a new car.
- Determine a Budget
Evaluating your finances is the first step in this process, and it’s an essential one at that. You might already have an idea of what make or model you’d like, but you need to review your finances to see your income and outgoings. Remember that although you’re budgeting for a car, you will also need to calculate additional extras such as car insurance, road tax, annual MOTs and servicing. Although the admin side of the process isn’t exactly thrilling, it is on to the exciting bits once it’s done!
If you’ve worked out your finances and you’re still unsure how much you would like to spend on a car, look at Warranty Wise’s article on ‘how much of your salary should you spend on a new car?’.
To give you an overview of the article above:
- You should budget 10-15% of your annual income for a cheap, affordable car.
- You should budget 20-25% of your annual income for a comfortable, more reliable car.
- If you’re a big car enthusiast and view cars as a lifestyle item, you should look to budget up to 50% of your annual income.
2.Research Resale Values
Before purchasing a brand new car, it’s sensible to consider how long you’ll be keeping the vehicle. The average car owner doesn’t keep their car for longer than ten years, but there are two other factors to take into consideration:
- If you’ll be buying the vehicle outright with cash.
- If you’ll be purchasing the car on finance.
If you’ll be paying for your new car with cash, you have the freedom to decide how long you want to keep the vehicle. Regarding this option, you should research the reselling of your car to give you an idea of the cost. This gives you a ballpark figure on how much you could sell the vehicle, depending on its age and condition.
If you are purchasing the car on finance, you will have to pay monthly payments to keep the vehicle or pay it off in a lump sum if you would like to exit the financing contract. Financing can last anywhere from 1-5 years, but all providers differ. Many drivers choose to pay the finance off, keep the vehicle for an additional few years and then sell or part exchange it for a new upgrade – but it’s your choice!
Dealerships have many additional extras when buying a new car, whether it’s different wheels, adding a sunroof, interior colours, etc. However, you can customise your vehicle to save money (and it can be fun, too!). Any extras must also be budgeted for, so make sure you write them down, assign costs to them, and do your research.
This could be anything from new car seats to interior coverings, coloured wheel trims, a private registration plate, and more! A car is the second largest investment you could make – with purchasing a house being the first. Similar to a home, you will want to make your beloved vehicle your own and maintain it, so it’s still like new even years down the line.
- Where To Buy Your New Car
There are two main options when it comes to where you buy your new car: online or from a dealership.
Websites such as Cinch have become increasingly popular, removing the hassle of going to dealerships. You can simply browse online, select the car you’d like, and get it delivered to your home address! It’s really as easy as it sounds.
However, dealerships offer a personal touch and allow you to see vehicles up close and personal. So, depending on which option you prefer, whether you want the experience of going to dealerships to test drive the cars or ordering online from the comfort of your own home, the option is all yours.