Buying a new car can be a really exciting time and for many, it can be one of the biggest purchases they will make in life. It’s important you get your car buying decision right so before you head to the dealership, we’ve put together a list of 5 things you should do before you even step foot in a car dealership.
By following these steps, you’ll hopefully find a car that’s right for your needs and your budget, and from a reputable dealership!
1. Set your budget and stick to it
Your budget is so important and it should always be the first place you start. Your budget may be a cash price to buy a car outright or a monthly payment if you wish to acquire finance. It’s important you set a realistic budget and stick to it.
It can be easy to get carried away with the possibility of the cars you could get and bulking out your finance deal with optional extras and add-ons. However, this could very easily leave you out of pocket.
2. Know what you need from your car
Once you have your budget in place, it’s time to think about what you need from your next car. By setting your needs and requirements before you start shopping it can help you save time and ensure you get a car that’s fit for purpose.
Think about things like how many seats you need, how often you use your car, how far you drive, if you need child seat compatibility, and which fuel type would suit you best. A common used car buying mistake is buying a car on looks alone and not actually being able to meet its functionality. There’s nothing wrong with enjoying the aesthetic of your new car but make sure it’s able to do its job too.
Source: rediff.com
3. Get pre-approved for a car loan
If you have your heart set on car finance, it’s worth remembering that not everyone who applies for finance will be accepted for a car loan. Lenders can’t approve everyone as it would be unethical to offer a finance deal to someone who couldn’t afford to pay it back.
So, it can be worth comparing finance deals and getting pre-approved before you dive into the world of car finance. Getting pre-approved means getting an instant decision for car finance to show you the likelihood of getting a car on finance. A pre-approval is just like soft approval before taking out the actual finance deal.
4. Check car insurance rates
Car insurance in the UK is a legal requirement so it goes hand in hand with your car payments. It can be a good idea to search around for car insurance rates before getting your car so there are no nasty surprises.
Car insurance rates can vary depending on your personal situation. Factors like how long you’ve been driving, your no-claims discount, and where the car will be kept will affect your premium. However, the car you choose will also affect your car insurance rates. Your car’s market value and cost to repair can determine how much you’ll pay in insurance.
It can be worth hunting around for cheap cars in a low-insurance group if you want to keep costs low.
Source: experian.com
5. Find a reputable dealership
Another important aspect of car buying is where you buy your car from. We recommend always buying from a dealership over a private seller as it gives you more protection if anything should go wrong with your purchase.
A quick Google search can help you find dealers in your area with cars in your budget. While you are there, you should also check our customer reviews of the dealership to get an idea of their experience.
You can also check if the dealership is verified by the Financial Conduct Authority on the FCA website which gives you a higher level of protection with your purchase.
