When it comes to buying a new car, the average person is absolutely spoilt for choice. There are luxury and prestige vehicles from some of the most celebrated car manufacturers around the world like Land Rover, Bentley, BMW, Mercedes-Benz and Aston Martin. Added to this, do you choose an SUV, Sports or Coupe?
No matter how you look at it, buyers have never had it this good: there’s something for everyone available in almost any kind of configuration you could imagine. However, buying a new car can be a bit of an ordeal, especially if it’s your first time.
What you need to know when buying a new car
Plan a budget
It’s fair to say that the budget is likely the most critical factor involved in buying a new car. So take a good look at your finances and determine your range. Even if you don’t have the money upfront to pay for your new car, there are a number of car financing schemes available to help you get in the driver’s seat as soon as possible. When it comes to planning a budget to buy a car, you need to take everything into account and not just the price of the car. For example, car insurance and road tax as well as routine maintenance and a side budget for unexpected repairs, should all form the basis of your budget.
Many people opt for car financing in order to own and start driving their dream car, typically via a HP (Hire Purchase) agreement, PCP (Personal Contact Purchase) agreement, personal loan or other finance options. Either way, you need to know precisely how much you can repay each month. You can even utilise guarantor or joint hirer car finance.
No matter what mode of lending you end up choosing, take into account unexpected life events like redundancy, illness, a change in job, etc. Here’s a tip to calculate how much you can afford to repay each month:
Think about your basic monthly outgoings like utilities, food, mortgage, plus any other day-to-day living essentials, and then put it next to your regular income. You’ll have a fair idea of how much you have left for your car purchase. Now reduce this figure by a third and that should provide you with a reasonable margin for any sudden costs that may crop up like unplanned life events, celebrations, holidays, etc.
The amount you’re left with can be safely considered your ‘car budget’.
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Consider resale value
It’s always good to be realistic about how long you want to keep your car. For example, if your intention is to keep the car only for a few years and then sell it, you’d definitely want to choose a luxury/prestige vehicle that’ll hold a good value for when it’s time to sell.
Naturally, some cars are better at holding their value over the years than others and there are a number of variables which can influence their RV (residual value). Typically, a low-spec version of a premium car , such as an entry level BMW SUV, for example, may be actually worth more in, say, three years than a similarly priced non-premium car with a high-spec version – such as a Ford SUV with all the bells and whistles.
Do you really need the optional extras?
The specification along with the optional extras in a car can have a significant effect on its price. However, all those optional extras may not necessarily translate into a higher resale value.
However, there are specific options that may have a desirable effect on a car’s resale value over the years. For example, majority of car buyers love metallic paint and optional extras like a sunroof and electric seats.
In any case, consider if you really need the extra features and how popular they might be in the future as that could have a direct bearing on the resale value.
Call us now on 0330 174 8540 for a no obligation discussion
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Fit for purpose
Many people end up buying cars which they don’t fully utilise over the years.
For instance, if you’re just a couple, buying a large SUV may not be the best vehicle type to buy, at least not for now, anyway. Similarly, if you’ve got kids and more are on the way, then a small and compact vehicle with no room for child seats may give you buyer’s remorse later.
Apart from your family unit size, also think about any items you may want to regularly carry with you while driving. Examples include musical instruments, mobility chairs, golf clubs, etc. Take a look at the boot space of the car you’re about to buy – will it be able to accommodate all these easily? Boot space is actually one of the most crucial car factors to consider when we talk about practicality. You also want to see if it’s easy to load up the boot and how hard-wearing the internal surfaces are.
Next, choose what kind of fuel type you want to buy. Diesels are more expensive but offer better fuel economy than petrol-based cars, for example. If you want to ditch traditional fuels altogether, then go for an EV (electric vehicle), or even consider a Hybrid.
It can also be initially confusing to decide how to finance your car. It’s always a good idea to run through some car financing options with an independent car finance broker.
If you’re looking for a simple, straightforward way to buy your dream luxury or prestige car today, then contact Liber Financial to get started.
We’re here to help
Liber Financial can help you determine eligibility and make the entire process really easy for you.
Call us now to explore a variety of car financing options: 0330 174 8540
WhatsApp on 07535 812 049
