Are you all set to buy your first car? Initially, the entire process may seem daunting as you receive advice and tips from family and friends. But it can be a fairly smooth process from start to finish if you do your research and are fully aware of some of the pit falls. To help you through this process, the car insurance Ireland specialists at Britton Insurance have put together some quick tips for you to keep in mind when buying your first car.
Set a Budget
“What’s my budget?”
That’s the first question you must answer. It’s perhaps the least exciting question to answer but it will help narrow down your options to a handful of cars that you should focus on and seriously consider to meet with your budget.
Here are other aspects you must consider in addition to the price of your car:
- Car tax (different bands and the size of the engine)
- Expected fuel costs per week
- Maintenance and upkeep of the vehicle
Consider all of these aspects before you decide on the budget you can afford to buy your car. It’s best not to spend all of your savings on a car that you won’t be able to maintain, week to week.
Get What You Need
Once you’ve nailed down on the budget, it’s time to analyse your exact needs. Write up a list of all the features that your car must-have. Stick to absolute ‘must-have features’ while separating your wants from your needs. For instance:
- Do you need a four-wheel-drive to drive to work on standard roads?
- Room for equipment / tools or additional passengers?
- Better ‘miles to the gallon’ to keep within your monthly budget?
Once you have a list of must-have features, look for a car that ticks all of the boxes.
Get a Used Car
We strongly advise getting a used car.
A new car loses about 11% of its value the minute it leaves the car showroom.
For the next five years, the value of a car will depreciates by 15% to 25% each year. After five years, a car is worth around 37% of the price that you paid for it.
And if you take a loan for your ‘new car’, the depreciation would mean that you will most likely owe more than it is worth right from the word go. That isn’t good if you are looking to sell it later, only to realise that you owe more than the buyer is willing to pay for your car.
When you get a used car, you aren’t paying an inflated price just for the “new” factor.
Put Down As Much Cash / Savings As You Can Afford
The savings you pay upfront will help reduce the amount of finance you need. The higher the down payment, the better it is for you in the long run.
For one, you will be tied to depreciation as discussed above. And second, the more you borrow, the more you are paying in interest on the money you borrowed. So the bigger the loan, the higher your interest cost will be over the period of the loan.
With a bigger down payment, you can lower your interest cost whilst also keeping your monthly payments low.
Get The Best And Most Cost Effective Car Insurance for Your Specific Needs
Depending on the value of the Car you should look at the different options available to you for your Car. 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. Remember our Motor Insurance Team at Britton Insurance are 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 to us . We research the insurance market and look for the best motor insurance cover available to us from up to 15 insurance companies within Ireland at any given time. By researching the market, we can identify the best rates available to us for different insurance requirements with the best benefits and features for your particular car insurance needs and cover. Contact us today by phone on 074 9721 304 or use our online quotations form for a free insurance quotation.