While an exciting time, taking the plunge to buy a new car can also be daunting as it will usually mean agreeing to a significant investment.
The first thing that you will likely think about when it comes to your budget for a brand-new vehicle will be its ticket price, followed swiftly by how you plan to pay that cost. There are several ways you can finance a new vehicle today, from cash purchase and PCP to leasing, HP and contract hire – which method is best suited to you? Are monthly affordable payments best, or do you have the cash saved to pay off the vehicle upfront and avoid paying additional costs in interest?
It’s not just the asking price of the car that has caught your eye that you need to consider though, as you must factor in various running costs as well when it comes to working out your budget.
Fortunately, new cars dealership Lookers plc a few helpful tips to consider which should ensure that you always pay the perfect price for the vehicle of your dreams:
Consider the fuel type of your chosen car
Are you more prone to select cars which run on petrol or diesel? For many drivers, this is an easy decision, but for others, the decision requires a little more thought. Diesel models are generally more efficient than petrol. Diesel cars therefore generally cost more than petrol cars, and diesel costs more at the petrol station. If you are going to be driving more than 14,000 miles a year, a diesel car will generally make more financial sense as you will have made back your money in efficiency savings.
Bear in mind fuel and its relation to tax
The cost of fuel and how it relates to the amount of tax you need to pay will vary from one vehicle to the next. Therefore, it’s important that you know how much each of these will cost you. Road tax is simple to work out once you know how. The CO2 rating of a car will determine its tax band, which will determine how much your annual road tax will be. It is illegal to drive an untaxed vehicle – most dealerships will ensure your vehicle is taxed for a full year before you drive your new vehicle away! After that, it is up to you to renew your road tax each year, which can be done easily online.
It can be difficult to work out a car’s fuel costs. However, most vehicles will have the mpg information available on purchase so you can see how many miles to gallon you get from your vehicle.
Don’t forget the car’s servicing and maintenance procedure
In order to ensure your vehicle continues to run in a healthy and efficient manner, you’ll have to ensure that it’s serviced regularly and always has a valid MOT certificate. If there are any repairs needed, you should have these fixed as soon as possible. Warranties usually help cover the costs of maintenance and repairs. Service plans are often an affordable way to pay for your servicing on a monthly basis to avoid paying out the costs in one sum when your servicing is due. You might also want to consider signing up for a free reminder service so that you can avoid incurring any costs for late MOTs or breakdowns.
