How To Buy A Great Car On A Budget (UK)

If you want to know how to buy a car on a budget, follow these simple tips given by the experts…

Getting a car can benefit your life in a number of ways. It gives you freedom and independence and can even benefit your business. But it can be stressful getting a car if you have a tight budget and can limit your choices. The budget you have can also determine how you buy a car and if you choose a new or a used car.

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How To Buy A Car On A Budget

Before you even start to look for the car you want, you’ll need to work out the following to see what you might be able to afford given your budget…

Calculate The Budget For Your Car

The first thing you should do is calculate your budget. The budget for your car will determine how you buy it. If you’re looking to buy with cash, you can use your savings. However, you should leave a little behind for any unexpected repairs or for your car insurance costs.

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If you are looking to get a car on finance, you should prepare a budget that is affordable and realistic. You don’t want to leave yourself with no money at the end of the month. Or not be able to pay your finance back. With any type of loan or credit, you should never borrow more than you can afford to pay back. 

Factor In The Running Costs

As well as having a budget for your car, you should also consider the cost of owning a car. In the UK, it’s a requirement to have an MOT every year once the car is 3 years old, an in date and valid car insurance policy and have your vehicle taxed.

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The costs for each can depend on what type of car you have and how old it is. You will also need to pay for fuel, general wear and tear, and it’s recommend you get your car serviced every 12,000 miles.

When it comes to fuel costs, this will also depend on where you live, and the type of fuel you are using in your car. For example, a petrol engine will be cheaper to run these days as the price of petrol is cheaper than diesel.

They type of car you have will play a huge part in the running costs. If you have a seat ibiza, for example, this will be cheaper to run than something like a BMW 4X4. The bigger the car, generally speaking, the more fuel it will guzzle.

Avoid Buying A NEW Car

Of course, the best way to buy a cheap car is to buy it second hand instead of buying a new car. As soon as you leave the forecourt, your new car has already lost it’s NEW value.

OK, so you might not get a car with fully working air conditioning or cruise control, but at least you will have a car you can afford for now. However, you might also find a great bargain in full working order!

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Yes, it might be great to have that new car smell, but that will wear off very quickly and all you’ll be left with is a car worth much less than it did when you bought it.

Plus, buying a car new isn’t usually considered as being a good investment. Even a car with 5,000 miles on the clock will be a better option than buying brand new.

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Also, if you buy your used car through a reputable dealership, they generally put their used cars through rigorous tests to ensure they meet the required standards. Many of which will also come with the original manufacturer’s warranty, so you know you’ll be covered. However, do check this before you buy your car.

What Are Your Needs?

It might sound like a great idea to buy the biggest, newest and best car you can find in your budget. However, if you want to keep the costs down, you need to prioritise your needs.

Things to take into consideration include…

• Is it just going to be you driving in it?
• Do you need a lot of space in the boot?
• Where will you be driving it – off road, the city…etc
• Where will you be parking it?
• Do you need any specific features – sunroof, sliding doors, heated seats…etc.

Try to avoid getting a car bigger than you need as this will lower the running costs and the cost of general wear and tear.

Avoid Long-Term Loans

If you can avoid taking out a loan then that will save you a lot of money. The interest rates on these long-term loans is often very high so should be avoided where possible to save you money.

However, if you do need to take out a loan, try to make it as short as you can possibly manage. The shorter the term, the cheaper it will be for you.

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If you’re struggling to get approved for a personal loan for your car, you could consider asking someone to support your application. Agreeing to support your loan application and pay any overdue money back for you. For the lender, this instils more trust as there is more of a chance they will get their money back.

However, if you have had trouble in the past making repayments, or have a low credit score, it may be hard to find someone to support your application. You may be looking for no guarantor car finance instead. 

Will You Need Car Finance?

If car finance is the route you want to take, there are a few different types of car payments available in the UK.

However, this also depends on how you are wanting to pay off your outstanding finance and the type of car you go for. In the short term, buying a car using a finance agreement might be great to begin with.

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However, over time, the costs will start to add up in the interest rate you’ll be paying in your monthly payments. This is great if you can pay it off quickly. Otherwise it will be costly and will significantly affect the total amount to pay.

Shop Around For Car Finance

If you do plan to go through a finance company, make sure you shop around to find the best deal for the car you plan to buy. Don’t just go with the first one offered to you, as this might not work for you and your situation. Plus, you might also be able to find a cheaper option elsewhere.

However, this also depends on how you are wanting to pay off your outstanding finance and the type of car you go for. In the short term, buying a car using a finance agreement might be great to begin with.

However, over time, the costs will start to add up in the interest rate you’ll be paying in your monthly payments. This is great if you can pay it off quickly. Otherwise it will be costly and will significantly affect the total amount to pay.

Just make sure if you do opt for car finance, you can pay back each of the monthly car payments comfortably and it won’t leave you short.

The Best Places To Find Cheap Cars

So, what is the cheapest way to buy a car in the UK, especially if you’re on a budget? There are many ways to find and buy budget cars for sale here in the UK, you just have to go looking for them.

Some of the best places to find great deals for your car include…

• Autotrader
• Facebook buying and selling groups in your area
• Your local newspaper
• Motorpoint
• Cinch
• eBay UK
• Gumtree

However, if you decide to buy from somewhere like Facebook, eBay or Gumtree, make sure you have someone with you who knows what to look out for.

For example, that you have all the forms you need to complete the ownership transfer, that the car is in proper working order and is road ready.

Don’t Forget To Negotiate!

No matter where you decide to purchase your car, don’t forget to negotiate on the price. The worst they can say is no, but you might also be able to get a great deal.

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Negotiating probably sounds terrifying to some, especially if you haven’t done it before. However, you don’t need to be rude, or pushy, you could simply ask if they have any deals on to help you make up your mind on whether to purchase now or not. The likelihood is, they will want you to buy it there and then so make them make it worth your while to stick around.

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