Few activities are likely to make you feel more like a pauper than shopping for a new auto. Whether it’s a new model or simply new to you, everyone is looking for way to stretch a pound without incurring expensive repairs shortly after the purchase. A quality auto on a budget is possible, and the following advice just might help you get there faster.
Advance Preparations for Financing
The tag price on any auto is negotiable, but your interest rate and other charges associated with financing is determined in advance by your credit score. Depending on the purchase and loan type, you can expect total finance charges from several hundred pounds to a thousand or more. These fees add to the monthly payments, which means less disposable income for the life of the loan.
The first step to reducing these costs is strengthening your credit score. The first step is accessing a free credit report. There is no need to purchase a score. Look for anything that does not belong, and contest it with the bureau. Make all payments on time for several months, and put any extra cash into outstanding debts instead of paying the minimum.
The down payment is another important factor. Financing is much less expensive with a larger down payment. If you opt to use emergency funds for this purpose, replace them as soon as possible with any savings from the reduced car note. Down payments are not always a requirement, and several new model cars are affordable on the £26,500 average salary.
Slightly Used for Major Savings
Used cars may be hazardous to your pocketbook. One attractive method of minimizing the your risk relies on a little known trick. some cars depreciate faster than others. Depreciation has more to do with status and branding than actual performance in many cases. Consider some of the following numbers on depreciation.
- The Vauxhall Meriva 1.4 Excite/Life has a sticker price of £12,443. A mere three years later reduces this to £5,818.
- BMW 5 Series 520d SE is an expensive auto at £35,590, but you’ll only pay £16,234 after three years.
- A 2008 model Renault Scenic 1.6 Dynamique went for £14,338. Three years of ownership took this cost down to £6,319.
Older is Sometimes Better
Any buyer needs to first consider the exact purpose for the auto. If needs are minimal, it makes little sense to spend more than a few thousand pounds. If driving is significant to your business, such as vending sales, you’ll need the extra status of a seemingly more expensive auto.
Anyone scraping the bottom of the barrel to make an auto purchase should consider near-antique models. Standard shifting and minimal electronics are virtues when it comes to engine rebuilds, fuel economy, and DIY repairs. You’ll still want to check the VIN history and structural integrity.
Several options are available for the average wage earner. Autos look expensive on the lot, but great deals are possible even with new models. Assess your needs and financial standing carefully before making a decision.
– Jenny Coleville is a guest writer for www.netloans.co.uk where you can find out more about net loans.
