Driving can be an expensive pursuit, but for some of us it’s much needed in order to get from A to B. If you need to buy a car but haven’t got a lot of money to play with, here are some of the ways that you can lower costs.
Manage your expectations
Low-end vehicles can sometimes be bought for well under a grand. However, these won’t be top of the range sports cars. They may even lack the most basic modern luxuries such as air con and power steering. Bear this in mind, and you’ll easily find a vehicle on the cheap. You may not even need to take out a loan.
Consider the age
Old cars will sell for a much cheaper price. However, they can cost more in the long run. Depending on how many miles they’ve done, parts of the engine may have suffered wear and tear resulting in costly repairs around the corner. Insurance companies are likely to dramatically increase costs once a car has reached its maximum mileage, even if everything under the bonnet looks fine. Old cars may also be less fuel efficient. Not only will you be filling up more often, you’ll have to pay more road tax.
Use specialist loans
You can get loans with miniscule deposits that can be paid off over a long period of time, but these will accumulate a lot of interest, making the whole thing very expensive in the long run. You’re best off finding a low-to-mid range loan that doesn’t ask for an extortionate deposit but doesn’t accumulate a mountain of interest either.
If your credit score is low too, you’ll have to deal loan companies rejecting you. There are many ways to deal with this, from lowering your credit score to seeking dealerships with in-house financing – you’re best following a low credit guide online. Click here where you can find out more about this guide.
This applies to car sales prices, car loans and insurance schemes. Use comparison sites such as Compare the Market to find the best costs for you. Remember to also visit local car dealers and to look out for people selling directly. You’re likely to save more buying directly, although you may have less choice.
Negotiate with the seller
Buying a car is one of the few times in western culture where you can practice your haggling skills. Most dealers will expect you to negotiate the price, so don’t settle for what is on the price tag. Try to avoid falling for bundle deals. The seller may try to throw in a roof rack, anti-theft equipment and other accessories to make up the original value. Be firm and stick to your budget. Also try not to let yourself get rushed into a decision. A dealer may try to claim that a vehicle has been very popular or that he will give you a special discount if you buy today, but it may all just be a bluff.