Getting your first car is a big step to independence, but the costs can add up. For example, when it comes to insurance, newly-qualified drivers are generally penalised for their inexperience. Fuel prices are also increasing, so you’ll want to make savings where you can. While the process may seem daunting, there are ways you can avoid pitfalls and get the best bang for your buck.
Work out the costs
The purchase price is only one aspect of car ownership. Understanding what the outlays are going to be and what budget you need to cover them is the first step to buying a car you can afford to run. In addition to the purchase price, regular costs include car tax, fuel costs, maintenance and NCT costs, and insurance. Car tax and fuel will vary depending on the size of car you choose, so bear this in mind when you are looking for vehicles. Older vehicles are likely to cost more to maintain, so it might be worth holding back some of your savings to cover these costs.
Don’t buy more than you need
Work out what journeys you will be using the car for, and what you need to transport. Younger drivers may not need to worry about leg space in the back as they aren’t doing the school run, but may need boot space for sports or hobby equipment.
A first car is much anticipated, but it’s worth holding off on buying your dream car until you have more experience under your belt. A safe and reliable car, rather than a powerful model, will be cheaper to run and to insure. Four-wheel drive may be desirable, but is it really necessary if all your travelling is on standard roads? Plus these types of vehicles can also be gas guzzlers, and if you’re on a budget you’ll want to look for a good miles-to-the-gallon ratio.
Think carefully before buying new
For many, the costs of buying a new car will be prohibitively expensive. New cars also depreciate as soon as you drive them out of the showroom, and will probably require a loan for the purchase. While there are benefits with buying new, such as an extended warranty, most newly-qualified drivers will look to buy a used car.
While avoiding the latest model, try to find a vehicle that is not older than 10 years as again this will drive up the cost of insurance. Unless you are very knowledgeable about cars or have a mechanic who can view cars with you, always buy from a reputable dealer so you have come back in the case of issues.
It’s worth considering an electric vehicle. New traditionally fuelled cars are soon to be banned from the roads, leaving only electric and hybrid models as an option. The tax you’ll pay on these greener cars is also considerably cheaper, making them good for your wallet as well as the environment.
Borrow as little as possible
Paying as much as you can upfront will reduce the amount of loan you need, and therefore interest you’ll pay. It will also keep your monthly repayments lower, future-proofing you in case your situation changes down the line.
Shop around for insurance
You can opt for fully Comprehensive insurance (normally suitable for new or high value vehicles) or Third-Party Fire & Theft cover for older, less valuable vehicles. Having named driver experience will also bring down the cost of insurance. If you have some driving experience on a parent’s or spouse’s policy can be used as a form of no claims bonus.
Insurance companies will be competing for your business, so it’s worth shopping around to see who offers the best-value coverage for your specific needs. The choice can be overwhelming, which is where using an insurance broker really helps. They know the market and can shop around to find the right policy for your situation. The Motor Insurance Team at britton insurance is here to help and advise you on the most appropriate car insurance policy for your specific needs. We can help address your car insurance requirements by finding the best car insurance quotes in Ireland available.