Money For Lunch – Driving Down The Cost Of Changing Your Car

Driving Down The Cost Of Changing Your Car

June 8, 2017 3:07 PM0 commentsViews: 3

 

Has your old car given up the ghost? Are you looking for something a little more reliable? Do you need a bigger vehicle for your expanding family or are you desperate to enjoy the thrills and spills of driving away from the garage in a brand new model? If you’re on the hunt for a new motor, here are some tips to help you drive down the cost of changing your car.

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New versus used

If you’re absolutely desperate for a new car, that’s fine, but if you’re not, you could save yourself a fortune by buying a car that’s a couple of years old. The value of new cars depreciates quickly, and if you buy a used car, you’re likely to pay a lot less. Whether you choose to buy the vehicle or you have a finance arrangement in place, it often pays to swerve brand new cars. Your monthly payment will be lower if you’re looking at used car auto loan rates and you’ll pay a lower fee for a used car if you’re buying the vehicle outright. When you’re shopping for a new car, ask for both sets of fees so that you can compare new and used cars. If you’re buying, weigh up all your options and organize some test drives before you make a decision.

Finance and car loans

If you can’t afford to buy a new car outright, finance and car loans are a means of spreading the cost. Many of us don’t have thousands set aside for a new car, especially if you have to change it unexpectedly. If you take out a loan or buy a car on finance, this enables you to pay for the car over a prolonged period of time. You can choose to enter into a scheme that means that you’re the owner at the end of the term or you can give the car back in exchange for a different model. When you’re considering your options, shop around for the best rates and look out for incentives, such as a deposit contribution from the manufacturer.

Leasing versus ownership

If you’re not desperate to own a car, long-term leasing may be a more affordable option. When you take out a contract, you’ll put a deposit down and then pay a series of monthly lump sums. At the end of the agreed term, you’ll hand the car back, and it’s up to you what you do next. When you own a car, you won’t have to pay anything on a monthly basis, but you will have to cover the upfront cost. If you can do this, and you’re not fussed about having the latest models all the time, ownership may be the best option for you. Modern cars are built to last, and they can be a good investment, especially if you buy one that’s nearly new rather than fresh from the factory.

If you need a new car, you may be weighing up the options and trying to work out which solution is best for you. Everyone is different, and one option may be much more appealing to one person than another. Hopefully, this guide has given you some useful tips, and you can get the car you want without paying over the odds.

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