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The Best Ways to Buy a Car on a Budget

Cars are an expensive commodity and they always have been. However, they are quite necessary in the modern world, much more so than a couple of decades ago. The costliest thing about them is simply owning them because there is so much maintenance involved. Owners often forget about these expenses and realize just how expensive owning a car gets over time. In fact, the average UK driver spends over £160 each monthly simply running their car. On top of that, the prices of brand new vehicles are not something many people can afford. Buying the most popular models of cars can cost between £12,000-£36,000 when bought brand new, a lot of money for something that will then cost you more for fuel, cleaning, and servicing.

They are Necessary

Source:pexels

Despite all of this, our world is made to be traversed by a car, at least when it comes to daily obligations like committing. Short trips are also the most affordable if you drive yourself. Therefore, they are very necessary and it cannot be said that our lives are harder with personal vehicles in them. None of this aims to say that cars still cannot be affordable for drivers on a budget however, on the contrary. They would hardly be this popular and wanted if nobody was able to get them. You just need to know where to look and what to look for. In this article, we help you with information on how you can buy a neat car on a budget. Keep reading to find out the best ways to buy a car if your budget is limited.

Shop Second Hand

Source:resources.carsguide.com.au

Our first piece of advice is quite an obvious one that you probably already know. The most common as well as the most affordable way to buy a car on a budget would be to always buy second hand. There is often a strong temptation to buy a new vehicle, often in the belief that a second hand car may be less reliable and beaten up. However, going to a trusted second hand dealership will remove any element of unease you may have as they should be carrying out their own extensive checks on every vehicle before they put it up for sale. In addition to this, many also offer the option to return the car and get a refund within a certain period if you change your mind after purchasing. Buying new is not really smart even if you have the money because cars lose their value very quickly. They lose around 10% of their worth by the time you drive it home from the dealership, and about 20% in the first year. Second hand cars in great condition are the best choice you can make.

Utilise the Three-Year Sweet Spot

When you are looking in the used car market for a new set of wheels, the best bargains to snatch up are those in the ‘three-year sweet spot’. This refers to the fact that cars are often purchased brand new on finance, and these contracts typically last three years. At that point, the performance of the car remains strong but its market value usually goes down as much as half of the original price. This enables used car buyers to pick up a car that runs well, is not at all that old, and for around half the price it was originally purchased for. The biggest gems are found like this and the sellers often bring the price down more than they need to in order to sell quicker. Cars lose value very quickly, but their performance and condition remains good for the first several years. Therefore, the three-year sweet spot is where you need to look for.

Make the Most of Finance Deals

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If you are struggling to find the money for your new car upfront, do not worry as there is a great solution you should consider. According to HPL Motors, finance deals could just be the answer you are looking for. Buying a car on finance is not just for new vehicles, as it can also be done for second hand vehicles. There are quite a few different types of finance packages to choose from so take the time you need to understand what each one offers. Think of them a little bit like taking out a phone contract. It is a nice way of looking at it as it helps you understand the implications, the benefits, and the inner workings of the deal. There are many to consider so be sure to shop around. You are likely to find the one that best suits your current car needs.

Consider Going Electric

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Last but not least, you could think ahead and limit additional spending over the course of the next few years while driving it. Gas prices are going up, there is no denying that. Worst of all, they will continue to go up as the economy changes and as we approach the time when there is are any fossil fuels left in the world. To get ahead of this and prevent overspending on fuel, think about going electric. Admittedly, at the current moment due to the prices of battery technology, electric or hybrid cars are by no means the cheapest things on the market to buy. However, when it comes to the running costs this is where you will see your savings in the long run. Electric cars are incomparably cheaper to run than either diesel or petrol over several years. What is more, if you have a driveway and are able to charge your car overnight at home rather than paying to use a charge point elsewhere, it will be even cheaper still to own a novelty car like a full-electric or a hybrid. If you do happen to come across a reasonably priced electric or hybrid vehicle when browsing used-car websites, it is definitely worth weighing up whether spending a little more cash upfront could actually save you later.

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