Nothing can compare to buying your first car. Not only is it a significant milestone, but it’s also an extension of your personal space. It’s all yours!
Saving up money is admirable. But, sometimes we all need a little bump to send us in the right direction. That’s where finance comes in.
Well, it doesn’t have to be. Getting the right finance for you and your circumstances will help get you on the road even quicker.
Here’s a smart guide on how to tackle financing, and things for you to spot along the way.
Play the long game
Credit history is often the one thing that puts people off when buying their first car under finance. But why let it?
If the end goal is buying a car, set aside a period of time where you can build up your credit score, as a result, better finance deals will automatically be available to you.
With a wealth of competitive finance business online, you can effortlessly search to find the lowest rate on offer to you.
Carvine seeks out the best rates based on you as an individual. So, whatever you can afford, or your circumstances dictate, Carvine can offer a fair price and quickly.
Figure out a budget
Affordability is key to your success as a car owner, and that goes beyond the dealership.
Having a budget in mind before you attempt to buy your first car is crucial. If you can’t afford more than you are prepared to pay, know your limits ahead of the game. Coming home with anything less than what you wanted, will only create disappointment.
So, what will the running costs be?
- Loan repayments – know your finance options
- Fuel – the only way you’re going to get A to B. How far are you expecting to drive in a year? 3,000 miles? 8,000? More?
- Insurance – not only is this essential, but it can also be expensive. Seek out your best deal online ahead of making your purchase. It may surprise you.
- Road Tax – very few cars are exempt. So unless you are buying an electric, pre-1973 vehicle or a band A VED, you’re going to have to pay road tax.
- MOT – unavoidable after your car is older than three years. Your vehicle has to pass its MOT to make sure it is roadworthy and safe to drive
- Car maintenance – you will need to service your car regularly. Anything from checking the oil, to making sure the tyres are legal are all potentially costly.
Now you know your budget, stick to it.
Recently passed your test? Buying a car on finance may help you manage your money better.
Finance brings with it many benefits that you may not afford without it. Insurance, repairs and reselling your car on can cost you more than you can pay.
Even if you are in part-time employment, financing your car will help make your money go further.
There was a time when a first-time car had to be a banger. Rust, body damage and flat tyres to boot, the vehicle world has moved on, and so should you.
Financing your car opens up a much broader catalogue of vehicles for you to choose from. Insurance premiums are massively reduced for young drivers, and any repairs are covered.
What’s more, when you have finished paying off your loan, the car’s all yours. Think of it as an investment for your future.
Boost your credit rating
Buying a car on finance is a great way to build a solid credit rating. Credit ratings will impact on major purchases throughout your life. From a new TV to a new home, having a good credit history can help immeasurably.
Sourcing a car on finance can help you to build a great credit score provided you are on top of repayments.
One major and often overlooked benefit of financing your first vehicle is that you become free from usual limits.
Typically, you would be limited by what you could save and have aside for the purchase. Because financing relies on manageable repayments, you are likely to have access to a much larger initial budget.
Long story short, you have more budget and a better choice.
The bottom line
Have confidence in what you are doing and know that finance is a viable option. Know what you are signing up for, and seek out the best finance that fits in with your life/budget.
So, what will your first car be?