With the new registration plates on the horizon, you may be considering investing in a new set of wheels. If you’re keen to upgrade but want to get the best possible price – you’re in the right place. Here, we look at how to secure a great deal and ensure your investment makes sense financially.
Find out the recommended price of the car
Before you step foot in a dealership, it’s important to do some research to get to grips with the recommended price of the car(s) you’re interested in. If you’re buying a used car, check out the same model of similar age, spec and miles being sold in different dealerships and by private sellers to get an idea of how much it should cost. This will help you to understand if a dealership is marketing a particular car for an inflated price or whether you’re getting a great deal.
Set a budget and stick to it
As you’re researching and getting to grips with the average prices for the makes and models, set yourself a total and monthly budget. The first thing to do is establish how much you can comfortably pay for the car in total, and if you’ll be paying it off monthly, how much you can afford to take out of your pay packet. Once you know this figure, have a look at running costs like fuel, tax costs, and the price of insurance as this may sway you towards a particular model. Having a budget in mind before buying will make sure you choose a model that you love but won’t overstretch you financially.
Look at various payment options
If you aren’t paying for your car outright and need to spread the cost monthly, then it may be worth looking at various loans in addition to the finance agreements that the car dealership advertise. This is because you may be able to get a loan with a much lower interest rate than that of the finance agreement – meaning you’ll pay less over the full term of your repayment plan. As well as personal loans, there are many options to consider, such as hire purchase plans, personal contract purchase plans and personal contract hire. The Money Advice Service have a handy guide on the different finance options to help you choose the best one for you.
By setting a realistic budget, looking at various finance options, and understanding the typical retail price of the car, you can put yourself in the best place to secure a great deal. Happy car shopping!