Loans to buy a car
Buying a car is a major investment, whatever your age or lifestyle, and the costs involved might seem a bit daunting. If you don’t have enough savings to cover the cost, a personal loan could be an option for you.
The costs of owning a car
There are a lot of costs associated with owning a car that go beyond the initial purchase price, but there are a number of ways you can combat these and save yourself some cash. Here are the main ways you'll be spending money on your new vehicle, and some money-saving tips to keep expenses down.
It's a legal requirement to have at least third party car insurance to drive on UK roads. Before you select your insurance plan, consider what type of car you have, find out what policies are available to you, and work out how much you can spend.
There are many ways you can save on your car insurance costs. The first step is to make sure you get the right level of coverage for your needs, whether that's third party only, third party fire and theft or fully comprehensive. While other measures within your control, such as keeping your car in a secure location, taking extra security measures or going for a higher voluntary excess, can also cut the cost of your premium.
To avoid breakdowns and other car troubles, make sure you regularly service your vehicle. This comes at a price, but it's vital to helping you stay safe on the road. If something happens to your car, the cost could be much higher in the long run. Regularly taking care of the basics at home – such as checking tyre pressure, oil levels and other fluids – can keep your car running smoothly. Booking in regular services (check the manufacturer's specifications for a guide, but usually at least once a year) will help you to spot any problems early, and stop issues from building up, which could save you cash in the long run.
You should consider the cost of fuel if you're hoping to buy a car. Remember to include it in your budget so you're not caught short. There are a few ways you can save, though. Driving well can actually have a positive impact on your finances. Cut your petrol spending by accelerating and braking smoothly, driving in the right gear at all times, refraining from driving too fast, and opening the windows instead of using air conditioning when driving at low speeds.
People often have their hearts set on a particular brand or model of car, and if you're not willing to budge on this then you could be spending a lot more on your new wheels than you'd hoped. Your car doesn't have to be brand-new to get you from A to B in one piece. Second-hand vehicles can be just as efficient and are usually much cheaper – just make sure you receive the entire history of the vehicle from the seller and give it a test drive first.