How to save money on your next car

Buying your next car or first car can be really exciting! But if you’ve never done it before or want to make sure you’re making a money saving decision, there are a few ways in which you can save money on your next car. 

For many people, getting a car will be one of the biggest expenses they will have. Depending on the type of car you want, it can take a while to save up for a car. Alternatively, you can consider financing or leasing a car too, depending on your circumstances. Let’s take a look at the different options available and how you can save money on your next car. 

Work out your requirements first 

When looking for your next car, you probably already have what you want in mind. But considering a few different makes and models of cars, engine sizes or car insurance groups can save you money. Its best to draw up a list of essential requirements and then go from there. Do you need a large boot for pushchair? Do you want an eco-friendly car? Do you want petrol or diesel? What you think you need in one particular model; you may be able to get from another but at a lower price. It’s recommended that you consider a few different types of cars rather than get hung up on one. 

Check out the cheapest cars to run

Buying your car can be a big expense for many people, but you should also consider how much your car costs to run too. When you own a car, you will also need to pay for car insurance, road tax, breakdown cover, fuel costs, MOT and servicing and any unexpected repair costs. Smaller engines can be cheaper to run so if you don’t need a lot of power, you can consider a 1.0litre or 2.0 litre engine which can help you save money in the long run as they don’t use as much fuel. When it comes to fuel costs, petrol cars are usually cheaper to fill up compared to diesel cars. 

Cash is king

Buying a car with cash can be the easiest way to make sure you’re save money. There’s no added interest or varied monthly payments so you can save money in the long run. If you’re shopping for your first car and just want a little runabout, you could spend a few months saving up first and then getting a car you want at a low price. 1 in 5 new drivers will have an accident in their first year of driving so you may not want to set your sights too high on a new car. However, if you are already an experience driver and need a car asap, you may not have time to save up for a car. Taking out a loan, financing a car or leasing a car could be a better option for you. 

Explore different types of car finance

Many people have the same misconception that car finance is one simple agreement. However, in the UK, there are 3 main types of car finance agreement that are most popular. These options include a car loan, Hire Purchase car finance and Personal Contract Purchase agreements. Each finance deal is slightly different and can be more suited to people with different circumstances. It is recommended that you do your research on different types of car finance deals before you commit to one. It is also worth considering what your credit score and credit history is like before you start applying. Generally, if you have a good credit score you can receive lower monthly payments and pay less interest in the long run as you are seen as less of a risk to a potential lender. However, if you are applying for car finance with bad credit, there can be many options available to you as long as you can prove your affordability. 

Use a finance broker

If you want to go down the finance route but don’t want to deal with pushy dealerships salespeople, a car finance broker could be perfect for you. Many people think you can only get finance from a car dealership but there are many online car finance brokers who can help sort you finance for you and save you money. You would only need to apply online once with a car finance broker and then help get you the car finance approval you’re after. Car finance brokers are essentially the middleman between you and the lender. They work with a large lending panel who can offer a range of finance packages. Brokers do all the leg work for you and match you up with the most suitable lender for you and get you the best deal possible!