With the release of the new registration plates, there’s no better time to start thinking about your next car.
From make and model to cost and condition, finding the perfect set of wheels is time-consuming. The first question you’ll need to answer is whether you want to opt for new or second-hand.
To help you identify the benefits and drawbacks of each, we’ve put together five top tips for getting the right car for your needs.
1. New or used car? Know your deal breakers
Boot space, gadgets, fuel efficiency or even colour – what do you really want?
Websites such as What Car?, Parkers and Glass’s Guide enable you to check what options and specifications are available on different makes and models, as well as how much you should be paying.
Make a list of whether certain features are necessary, important or desired, and then research online to see which boxes are ticked. This will give you an idea of how much you might need to spend, and whether you are best looking at buying new or used to meet your needs.
Doing your homework will make it easier to find your ideal car.
2. Consider all the costs
Fuel, MOT, servicing and road tax… running a car doesn’t come cheap.
Consider the ongoing costs associated with a new or used car, as well as the initial purchase price.
While a new car will often cost more to buy, it could work out cheaper overall thanks to better fuel efficiency and lower running costs.
Bear in mind that petrol and diesel engines have different implications for fuel efficiency. And don’t forget the cost of a parking permit if you live in an area which requires one!
3. Where to buy?
Once you’ve found the car you want and know how much you’re willing to pay, you’ll need to think about visiting a dealership or private seller.
While a private seller could be slightly cheaper for used cars, dealerships can provide peace of mind as you’ll have more protection under the Sale of Goods Act.
If you opt for a private purchase, a vehicle history check can give you peace of mind as it will show if the car has been stolen, clocked, has any outstanding finance, or even written off. There are a few sites to check this on, such as the HPI check. Some sites may incur a small charge to undertake a check.
4. Don’t forget about condition and depreciation
It’s often said that a new car loses value as soon as you drive it off the forecourt – so does it make more sense to buy second hand?
It all depends on what you’re looking for. There are a huge number of things that affect a car’s depreciation. A new car will be in top condition with no need for an MOT for its first three years, which is a definite bonus for your immediate finances.
However, a used car won’t suffer from such a serious depreciation if it’s only a few years old. Keep in mind the influx of new cars into dealerships at the release of the new registration plates, as there are fantastic bargains to be bagged on the slightly older stock, especially if you have the money in your pocket ready to strike a deal.
5. Investigate your finance options
With so many finance options available for buying a car, you would be forgiven for feeling a little confused.
A personal loan could be a simpler option for both new and used car purchases, as you will have bargaining power as a cash buyer, and the security of knowing that you own the car outright from the start. In any case, don’t be in a rush to splash your cash – always leave yourself enough time to be able to walk away.
We’re committed to working with members, local organisations,
and employers to increase financial awareness in the wider community.
If you have any questions or would like help with any of our services, please contact us on 0141 274 9933.
Please check first that you are eligible to apply:
You are aged 18 or over
You have a UK bank account in your own or joint names
You are a permanent UK resident
You have never been bankrupt or had a Court Decree
To complete your application you will need:
Your current employer's address details
Details of monthly income and outgoings
Bank or building society details (sort code and account number)
To enable us to make a decision on your loan application we will contact Credit Referencing & Fraud Prevention Agencies. This will register a search against your credit record and if your application is successful we will share the information we hold for you with these agencies. Further details are available in our Fair Processing Notice
It is important that you read the Fair Processing Notice document above. If there is anything that you do not understand, please contact us.
Please be aware that the longer you take to pay back a loan, the more you will pay back in interest. If you go for a shorter term your monthly repayment might go up, but you'll save in interest and pay back your loan faster.