13 Financial Concerns to consider When Buying A Car
Different financial aspects that you should consider when buying a car.
Some of them you may be aware of already, others may be completely new to you. All should be taken into account though when you arrive on a forecourt, to ensure you’re not stung at a later date.
- How will you finance the purchase? PCP? Personal loan?
- Deposit – if you can put down more, quite often you can negotiate a greater discount on the car.
- Petrol or Diesel? If you’re buying new, diesel engines tend to cost more, but you’ll recoup that if you do a lot of miles by having a greater MPG.
- Depreciation – if you are buying new, do you mind taking the hit? Why not look at a car a few years old, which could save you the greatest part of the depreciation.
- Miles per gallon is the usual old performance vs economy debate that comes into play when considering miles per gallon. However, this is becoming less of a factor as cars are now using smaller engines which return greater fuel economy and better performance but you may need to pay more to get one of those newer cars!
- Insurance group – how much is the car going to cost you to get insured? If it’s a cheap vehicle, could you afford to go third party, fire and theft only?
- Find out which insurance group the car falls in to. If in doubt, call up a few insurers, they’ll be able to give you a free quotation and you could find yourself getting a lower premium than expected
- Servicing for some cars is notoriously expensive. How often is another factor. Some highly tuned engines need serviced more than others. Get an idea of servicing costs from the local branded garage as well as an independent specialist.
- Parts – how readily available are they? Are they much more than you’re used to paying? For example tyres for a BMW3 can give you a shock particularly when you’ve been used to a smaller hatchback.
- Known faults issues in vehicles that are out of warranty can be expensive to repair. Check out Parkers, VOSA and other sources to see if the type of car you’re buying has anything apparent. It may not happen to yours but if it does you’re better off knowing it’s a possibility beforehand.
- Tax bands are now quite wide these days. Are you prepared to pay more for a vehicle that emits CO2? If so, make sure you get the performance to match.
- Hidden costs (such as a car that drinks a lot of oil) should also be thought of but often aren’t revealed until you take a look at specialist/enthusiast sites.
- Hidden history – does the vehicle have outstanding finance, is it stolen or has it been in an accident? Any one of these factors could have a massive impact and if not disclosed could lead you to all manner of heartbreak.
Your car is a huge purchase so be a more aware consumer and bear all these things in mind. Go in fully aware of at least some of these points when looking at a new car.