Hundreds of cars with the new ‘71 plate registration will be rolling off dealership forecourts this month. But Alex Kindred, car insurance expert at Confused.com, is warning drivers not to get carried away with the thought of driving away in a brand new ‘71 plate motor, and to ensure that drivers do their homework before signing on the dotted line.
Buying a new or secondhand car should be a well-researched and calculated purchase. But, the process can be (and often is) fraught with mistakes if you don’t do your research before handing over the cash.
So, before you head onto the forecourt, Alex Kindred car insurance expert at Confused.com explains how you can avoid the excitement of your new wheels turning into buyer’s remorse.
Mistake 1: Forgetting your budget
It might sound obvious, but budgeting for your car is probably the most important step of the lot. But with the prospect of a brand new shiny motor and the pressure of a salesperson, budget can often go out of the window.
The budget – Think about exactly how much you can afford to spend on a car. Take into account all your expenses, such as your mortgage or rent, bills, and any other recurring costs.
Be sensible – Always allow more left over than you think you’ll need. While you might be on top of your budget and you find it easy to stay within your means, there’s always a chance that you’ll face unexpected expenses.
Consider the running costs – How much will you be able to afford on top of insurance, fuel bills and servicing?
Could you buy a used car? Although buying a shimmering car fresh from the production line can be tempting, you’re likely to save a lot of money by going for a used car. The biggest depreciation in the value of a car comes in the first year, so even buying a one-year old model will save you a bundle. Plus, the car will still have some manufacturer warranty left.
Have an old car? Trade it in! – You can get a free car valuation and you’ll immediately see roughly how much you can get for your old car. You can also use the tool to see if the seller is trying to rip you off when buying a used car.
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