Owning a car can be a large drain on resources, so if you’re thinking about buying one, make sure you consider all of your options carefully. Here’s a quick guide to the key things to consider before taking the plunge.
What will I be using my car for?
Have a good think about how you will use your car, and how it will best suit your needs. If you need space for golf clubs, children or a dog, then you could consider an estate, or a larger ‘people carrier’. If you’re just using it to visit friends, or drive to the train station, then a small city car might be more cost effective. Remember – the bigger the car, the greater the running costs.
Do I really need two cars?
If you are currently a two (or more) car family, ask yourselves if you really need both. By being a little more organised, you may be able to manage with one car, which can cut costs dramatically.
Should I buy a new car?
If you have the urge to buy a new car, then try to find one that is ‘nearly new’ rather than brand new. You will save on the initial depreciation costs (20% VAT for example), and a ‘nearly new’ car may have better optional extras that cost more when a car is new, but don't affect the re-sale value.
Alternatively, if you know you are only going to need the car for irregular short distances, you could choose a second-hand car with a high mileage. With time you will bring down the average mileage, and modern cars can cover in excess of 200,000 miles, as long as they are serviced regularly. Do ensure that you obtain a full service history before you buy.
Should I buy privately or from a main dealer?
If you buy a car from a main dealer, you should be able to negotiate warranties so you don't have to worry about anything going wrong. Warranties can be available on cars up to 10 years old. Service packages are also available from some dealers such as free servicing for 3 years, or £25 per month for 3 years - this keeps the maintenance costs down. A dealer may try to offer you a finance deal. Be wary of these deals as they can cost more in the long-run, and you may not be accepted if you don’t have a regular income. A personal loan may be a better option.
Is diesel cheaper than petrol?
It’s a common myth that you get better value for money from a diesel, but this isn’t necessarily the case. Diesel models can be more expensive to buy than their petrol counterparts, and petrol engines have become far more economical in recent years. If you’re not likely to drive a large mileage, don’t assume that a diesel engine will save you money.
What about road tax?
The cost of road tax varies wildly depending on the size of the engine and the emissions. The best place to look for details of the costs is on the governemt website. Some cars now qualify for a nil-tax rate due to their low emissions. And if you are disabled you can claim exemption.
Car insurance
The car you drive significantly affects the amount you will pay in car insurance. Look out for cars with a good safety rating, and avoid cars with large, sporty engines. Also make sure the car comes with anti-theft devices. Before buying a car, do a quick comparison quote to check how much the insurance will cost. Our easy-to-use online quote tool is a great place to start.
