There are lots of factors to consider when buying your first car. One big factor to consider is the cost. Many new drivers struggle to afford their first car. There are however lots of tricks that can help to reduce costs. Here are just a few ways to save money when buying your first car.
Opt for a used car
Everyone loves a brand new, shiny car. Unfortunately, you’re not going to get a new car in the UK for less than £6,000. Used cars are a much better bargain – you’ll find vehicles out there on sites like Gumtree for less than £500. You do need to be wary of the condition (you don’t want to be spending huge amounts on future repairs). In fact, it’s always worth bringing someone along who has mechanical knowledge so that you can check everything is in working order. It’s always worth taking a test drive and checking the vehicle’s service records too.
Choose a car with a low engine size
Cars with higher engine sizes tend to be more expensive to insure as a new driver. For this reason, it’s worth sticking to low power vehicles. Smaller engine cars also tend to have better fuel mileage, potentially saving you money in trips to the petrol station.
Be wary of buying on finance
A lot of first-time car buyers choose to buy a vehicle on finance. This means lower upfront costs, but it does mean higher costs in the long run. Car dealerships may try to offer you finance schemes from lenders that they are partnered up with. Don’t always rely on them to choose your finance – it could be worth shopping around yourself for loan rates. You can find guarantor loans from Buddy Loans that are ideal for young people with little credit history. Being able to pay a higher deposit could save you money in the future.
Shop around for insurance
New drivers often end up paying upwards of £1000 per year in insurance. It’s worth spending some time shopping around to find the best deal. Don’t just rely on comparison sites – there are many insurers that don’t feature on comparison sites with cheaper deals for new drivers. It can also be worth calling up insurance companies and getting a quote over the phone as some companies will be able to offer discounts that cannot be offered online.
Consider other driving costs
It’s not just the purchase cost and insurance that you have to budget for – tax and fuel are other costs to factor into your monthly budget. Opting for a car with high fuel efficiency will often save you money in tax and fuel. You should also be careful of when you use your car – don’t drive to places that you can easily walk to, as you’ll be using unnecessary fuel.
