You don’t need to splash out on your first car. That said, many new drivers do overspend when shopping for their first car. Here are just a few tips that could help you to save money.
Buy a used car
If you’re buying a new car, you can expect to pay a minimum of several thousand pounds. Used cars can be picked up for a lot cheaper – some used cars can sell for hundreds. You can shop for used cars online. Dealerships tend to sell more reliable cars as well as offering warranties, however they can be a little more expensive than buying privately. You should always inspect a vehicle in person (and possibly test drive it) before buying it.
Shop around for finance schemes
Finance schemes allow you to place down a deposit and pay off the total price of the car over an extended period. You’re essentially buying the car on loan, which means you’ll likely pay interest and pay more in the long run, however for many people that don’t have money saved up this can make the process more affordable. Some used car sale sites such as Hilton Garage are able to help you select finance schemes. If you’re buying from a private buyer, you may have to source out a car loan yourself.
Negotiate the price
Most sellers are willing to negotiate the price. Some may refuse to shift the price – but you’ll never know unless you ask. This could help to knock a small amount off the price. Be wary that certain vehicles may get a lot of interest – you don’t want to drive too hard a bargain, otherwise they may decide to sell to another customer.
Buy at the right time
Timing can sometimes make a difference when getting a good price. A lot of dealerships lower their prices at the beginning of the year when business is slower. If you haven’t spent all your money on Christmas, this could be a great time to buy. Weekdays can similarly be a better time to negotiate deals as sellers are likely to be making fewer sales during this period opposed to weekends.
Consider the insurance costs
Insurance costs as a new driver can be extremely high. When choosing any vehicle, consider which insurance band it is in – whilst no vehicle is likely to be cheap to insure, some will be cheaper than others. You can save money further by shopping around for quotes. Some insurers such as Marmalade specialise in new driver insurance and may be able to offer cheaper deals. You may also be able to save money by raising your deductible or by adding an experienced driver.