Whether you’re buying your first vehicle or replacing a much-loved motor, buying a new car can be an exciting prospect. Before you get started, however, you’ll want to calculate your budget carefully. To ensure you’ve got everything covered, take a look at these top tips for working out your car budget now:
1. Buying Upfront or Leasing?
If you’re buying a car outright, you’ll need to use your savings or access some type of funding, such as a personal loan. Alternatively, you might decide to lease a vehicle and pay in installments. If you’re going to be leasing a car or paying off a car loan, you’ll need to consider your income when you’re calculating your budget.
Once you’ve deducted your essential costs, like rent and food, from your monthly income, take a look at what you have left. This will give you a good idea of how much you can afford to spend on motoring each month.
2. Don’t Forget Insurance
The cost of car insurance can be as much as the vehicle itself, depending on your age and driving history. Due to this, it’s vital to factor insurance payments into your budget now. You can access quotes from insurance providers before you purchase a vehicle and it only takes a few seconds to get an insight into how much you’ll need to spend.
Remember – you can reduce your insurance premiums by choosing a vehicle with an impressive safety record.
3. Gas and Maintenance
If you regularly travel long distances or you use your car frequently, you can expect to spend more on gas than drivers who only use their vehicles sporadically. However, the make and model you choose can also have a big impact on how much gas you use. If you need help buying car, try searching for the perfect vehicle based on your usage and driving style. Larger engines tend to guzzle more fuel, so you can cut your costs by selecting a motor that offers better fuel efficiency.
Similarly, check the average cost of repairs and maintenance on prospective models before making a decision. Some vehicles are more time-intensive to work on and others are fitted with expensive parts, which can both increase your long-term running costs.
4. Consider an Extended Warranty
If you’re buying a brand-new vehicle, it should come with a warranty for the first three years. However, many vendors offer extended warranties that cover important extras or run for a longer period of time. Although you’ll need to pay a little more for an enhanced warranty, it can save you money and give you peace of mind.
Buying a New Vehicle
Although buying a new vehicle can be exciting, it can also feel a little stressful. Take your time to research which models suit your needs and test drive as many cars as possible to help you make the right choice. Spending more time on the purchase process could mean you’ll spend less money in the future!