Buying a car for the first time is a big financial and personal decision. As exciting as the process may be, you’ll want to make sure that you are well-informed when stepping into a car dealership, so you can put your best foot forward.
To help you out, we’ve put together a new car buying guide filled with tips & tricks to aid you in buying your next set of wheels.
One of the first topics of conversation that will crop up when you walk into a dealership will be your budget. How much are you looking to spend on your new car?
When trying to answer this question, consider the monthly payments, as well as other additional costs such as petrol, insurance, repairs, services and registration fees. The cost of owning a car is often more than your initial payment.
When you’re considering how to pay for a car, with all costs totalled, you should be aiming to spend under 20% of your household income on your new car. You can also check your credit score to determine the interest rate you will receive.
Buying a new car can be confusing, not only when it comes to the car you choose but also how you to choose to pay. So, what are the options?
- Cash outright
- Credit card
- Personal loan
- Leasing
- Car finance:
Hire purchase: Initial deposit & then monthly instalments and a final sum
Personal contract purchase: Initial deposit & monthly deposits but at the end you can either pay to keep the car, swap it for another car or hand it back to the dealer
Conditional sale: Initial deposit & monthly instalments)
While looking for a new car, keep in mind your requirements and what the vehicle will be used for in a practical, real-world sense. Think about your lifestyle and essential needs. Do you do school runs and need a lot of space for the kids? Do you often drive off-road or are you living in a city? Would you feel more comfortable driving a smaller vehicle compared to a larger one?
It’s a good idea to write down two separate lists of what you want and what you need when buying a car.
All brand-new vehicles lose value the moment they’re driven off the lot. The faster depreciating value of a brand-new car means that you will end up losing a lot more money if you ever come to sell it someday.
If you buy a used car, the upfront cost will be significantly lower. However, a new car is likely to be more reliable and will last longer without repairs - so what is best for you will be dependent on your situation, but it is always worth asking yourself if you need to be buying a brand-new car.
Diesel cars are generally more fuel-efficient than petrol cars, however this doesn’t necessarily make diesel the best option for you. Cars with diesel engines are often more expensive and it can take many years to recoup the cost in savings from fuel.
Modern electric alternatives and hybrid vehicles are becoming increasingly more common and if you care about sustainability and the environment, looking into eco-friendly fuel options might also help you with your decision when buying a new car.
From 2030, all new petrol and diesel cars are going to be banned. This is part of the government’s plan to eradicate the UK’s contribution to climate change with the goal to reach zero emissions by 2050.
Making sure to test drive cars will help you get a feel for what it is that does and doesn’t feel right to you. This will give you the chance to be able to identify any potential problems or even potential benefits that you weren’t previously aware of.
Ask yourself, ‘does the ride feel comfortable and safe?’, and ‘does it accommodate my requirements in a practical sense?’ On a test drive you can look for smooth clutch and braking, any veering, passenger space, boot space, suspension, engine noise and power.
It’s common knowledge that dealers have targets to meet, which are usually based on quarterly sales. Therefore, the end of March, June, September and December are good times to buy, as they’ll be wanting to make sure they make those last few sales and may be more likely to negotiate or offer beneficial packages for you.
However, don’t leave it right until the end of the quarter, as once targets are met, the deals are likely to disappear.
If you’re looking to get the most out of your money, there are a few things you can take into consideration:
- Smaller engines burn less fuel, meaning you can save money on petrol
- Smaller cars are cheaper to insure
- Manual cars are cheaper than automatic
- Petrol cars tend to be cheaper than diesel
- Although they cost more to buy, hybrid cars are usually cheaper to run
Below is a list of documentation that you may be asked for when purchasing a car.
You will need:
- Logbook / V5C / Registration Document
- Proof Of Purchase
- Seller’s Details
- Driving License
- Insurance Policy
- Payment Documents
- Passport, Utility bill and bank statement for identification
For used cars you should also ask for the:
- MOT Certificate
- Service History
- Full Car History Check
All this paperwork is essential to have to hand when you’re looking to buy a new car.
And those are our tips when buying a new car. Purchasing a new car can be daunting, but we hope with these new car buying tips, you can get the car you want (and need) at a price that suits you. If you think your new car needs to be looked over for any reason, you can arrange a car service at your nearest Eurorepar centre
