Buying your first ever car is an exciting time, however it can also be a bit of a reality check as you consider elements such as securing a car loan, car insurance premiums, day-to-day running costs and overall vehicle maintenance.
To give you a helping hand through this process, we’ve put together the following tips:
Do your sums first
Tot up what your car will cost you each month such as car insurance premiums, car loan repayments, tolls, parking and fuel. Next consider your other obligations such as car tax, NCT, car servicing and general car repairs and maintenance work.
When doing this, make sure you’ve shopped around for the most competitive motor insurance. Car Insurance for first time drivers can be considerable so this is vital. You should also decide whether you want to go for third party fire and theft or comprehensive motor insurance and the type and value of the car you want to buy. The lower the value of the car and the lesser the horsepower, the cheaper your car insurance will be, so this is well worth bearing in mind. A fuel efficient car should also be considered by all drivers.
And most importantly, don’t buy the car if you can’t afford it!
We will run your car insurance details through our panel of motor insurance providers to come back with the best value car insurance quote for you. You can get a hassle-free Car Insurance quote online here.
Naturally you’ll have to pay interest on your car loan repayments, so it’s best to keep the amount you borrow to a minimum by saving up for a decent down payment.
Your safety is key
Before buying a second hand car, we recommend an AA Car Inspection. The AA’s Car Inspection Service completes a full car safety check and road test before you buy your car so you have complete peace of mind that your first car is in good condition. We also recommend you read our guide to buying a used car.
Explore your financing options
Be prepared for the car finance lenders you approach to do a complete credit rating on you, ask about employment status, and the amount of money you have for a down payment. You should study the options available such as the credit union, your bank, online car financing companies and car dealership finance and their lending criteria to determine which is the best option for you is.
Younger drivers who don’t yet have a credit score should talk to their bank or credit union about options for building up a credit score. Your parents may also be in a position to co-sign the loan which the car finance lenders can talk you through.