Your first car is always going to be a big deal. Not only is it one of the first big financial investments you will make in your life, it is also a huge emotional investment. This car is what will take you to work, to fun days out, back home, and to any road trip you desire. It is what will give you freedom unlike anything you’ve purchased before. It can also be a huge money pit if you aren’t careful. Finance your car for too long, for example, and you can end up paying far more than it is worth. Instead, follow this guide so that you can finance your first car the right way:
Pick the Right Car
The longer you have your car, the more economical it will become for you. You should never go vehicle shopping with the notion that you can sell your car after a few years to recoup the costs. When it comes to cars, the depreciation value is huge. What this means is that the second you drive a new car off the lot, you cannot sell it for the same value the next day. You also don’t want to choose a used car that is, say, on its last legs. The longer it works, the more value you will get out the car. The same applies to the mileage.
How to Finance
There are many ways you can pay for your new car. If you happen to have good credit, you can pay for it through your credit company (applicable only if the vehicle is worth between £100 – £30,000). You can also pay for it through car financing, but it is important to be wary of the APR rates. The lower the rates, the less you will pay over time. These rates are often provided when you sign up for higher repayment sums over a shorter period of time.
Tips for Negotiating
Going in with a pre-approved loan or means to pay for your new vehicle will give you a lot of power when it comes to negotiating. A great way to start is by researching for what similar makes and models are going for. Other ways to get a great deal include going during the end of the day, month, quarter, and year. You must also be very willing to walk away if you don’t get a deal that you are looking for. Try again at a later date during key points in the financial year, when dealerships are more willing to sell an extra car for one extra boost to their quota.
Shop Around for Good Insurance Rates
When it comes to insurance, you want both great coverage and great rates. Another key factor to consider is the reputation of the provider itself. Acorn Insurance, for example, has over 30 years of insurance experience and comprehensive coverage options, allowing you to choose the best choice for you. The rates will depend on previous driving experience, age, and many other factors like what kind of car you will be getting, so get a few quotes beforehand and remember you can negotiate.
Cars are big purchases, but with the right know-how you can not only reduce the initial cost of the car, but get the most value out of it.