Considerations When Buying a New Car

When you are looking at financing a new car there are a number of considerations you should take into account before deciding on which path to go down. These factors will include such things as how much do you have available each month, the period over which you’d like to take the loan out and your financial history as well. Your final choice on finance will also ultimately have an influence on what car you are able to decide on as well.

The first thing you should do before looking at any cars is work out your budget, how much money can you get for a deposit, how much will you need for running costs, servicing, fuel, insurance and road tax.  Once you have a clear idea of the money you have available and require you will then be able to shortlist potential cars.

Shop around is good advice both for cars and finance, you may be able to get the same type of car cheaper elsewhere or a better deal on your financing from a different source. Also check on warrantees and payment protection schemes should you have problems with the car or meeting monthly bills. Always use a reputable car dealer; good companies will be members of professional trade organisations like the Retail Motor Industry Federation, (RMIF).

Take into account the loss in value of the car as well. Some cars depreciate in value quicker than others and are of higher value when it comes to re-selling the car or putting it up as a deposit against a new car. Good deals can also be gained if you avoid the months when licence plate letters change.