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Can You Avoid Getting Stung On Financing Your Family Car?

Buying a new family car is a big financial commitment – and it’s also an area where it’s very easy to get taken in by tricks and end up with something that seems like a good deal on the surface, but when you look into it, really isn’t – and that goes whether you are buying new or second-hand. Car dealerships and their salespeople are very skilled in persuasion techniques designed to get you to make a purchase. It’s also important to remember that most dealerships make their money on the sale of car financing, and not so much on the vehicle itself. So the ticket price may seem good, but it’s the specifics of the financing that you really need to pay attention to in order to avoid getting stung. So, how do you make sure that you are getting a genuinely good deal?

Can You Avoid Getting Stung On Financing Your Family Car? - stylish image of old beetle car
Photo by Matheus Viana from Pexels

Don’t Focus Too Much On Headline Price

The headline price is the figure that the car is on sale for. Now, this may seem like a good deal overall – you’ve done your research through a site like Parker’s, you understand what the make and model should be worth new or used, and it seems like the figure on the ticket is a fair deal. But the headline price of a car is arguably one of the least important factors here. Instead, you should focus on factors like whether the vehicle is really suitable for your circumstances and your needs. Are you buying more than you can afford? How much are the expected running costs for this model? Don’t get suckered into paying for an appearance or a badge. It’s more important to ensure that the car you’re getting is something that fits into your life and that you can afford without having to make sacrifices elsewhere.

Pay Attention To Financing Terms 

Even if we feel confident in negotiating with a salesperson on the headline price, we could still lose out if we don’t pay close attention to the terms of the car financing agreement. It may be worth considering going with a specialist lender like the Martin Brothers Motor Company, or you could go down the route of asking for a bank loan to fund your purchase. It’s hard because the financing isn’t as tangible at the headline price, but securing a lower Annual Percentage Rate (APR) could literally save you hundreds or thousands over the course of your financing deal. Consider whether there are any financial penalties for paying the loan off early if you can, and increase the deposit where possible so that you’re paying less on the financed side of the vehicle. Of course, if there is a 0% offer that is definitely worth considering. Otherwise look for a loan no longer than 36 months and aim for a 20 percent deposit. 

There are a lot of things to consider with a purchase of this scale, so make sure that you take your time, think through the depreciation of your car and it’s longer-term running costs and factor in the whole picture. It’s easy to get carried away, but if you stick to your principles and walk away with a good deal, you will have made a financial decision you can be proud of.

Does Being Underinsured Truly Save You Money on Your Car?

Insuring your automobile can be a financial burden. In America, insurance is the third-biggest expense associated with car ownership, as illustrated in the Carsurance’s infographic.

Actually, it can set you back more than maintenance. Allotting a larger slice of your budget for auto insurance, a product you may never use, than for regular vehicle upkeep, which is of utmost importance, can be a hard pill to swallow.

Even worse, many non-driving qualities can inflate your car insurance premium. The younger you are, the higher your payment will be. Although it goes down incrementally as you mature as a person and gain more experience as a driver, it is likely to increase again after your mid-50s.

Apart from your age, your gender may be a liability too. Being a male can place you at a disadvantage, for men in general are more reckless on the road than women.

Your place of residence or work may play its role in driving your auto insurance premium up. Commuting in a location with high traffic volume or with crime rate does not give your insurer incentive to charge you less.

If you are like many private vehicle owners, you probably buy auto insurance with minimum liability coverage in hopes of saving money. Doing so does not break any law, but it can render you underinsured since your insurance may be not comprehensive enough to pay for all of your financial obligations in case of an accident.

While being underinsured can shrink your insurance payment, the benefit may be short-term only. If you get involved in a car crash, your insufficient insurance coverage will force you to pay the remaining expenses out of your pocket.

This gamble may not be worth the trouble. Considering the prospect of financial distress in the event of a collision, especially when you are found culpable for the incident, increase your coverage limits and raise your deductible to get more value for your money instead of risking being underinsured. This way, you can get more reliable coverage and receive a discount at the same time.

To learn more ways to save money on your auto insurance properly and effectively, check out the infographic below!

Does Being Underinsured Truly Save You Money on Your Car? - car insurance infographic

Driving Up Savings

How will you afford a new car when your old one is clearly on its last legs and unlikely to make it through another MOT? There’s no magic answer of course, just plain, hard saving but saving doesn’t have to take as long as you might think, particularly if you are covering all the bases.

We take a look at some of the most efficient ways to make savings in your life and reach your goals all the quicker.

Driving up savings - how to save money on your next car - speedometer image
Image by Arek Socha from Pixabay

Contrast and Compare

Maybe you’ve gone on price comparison sites because you’ve needed to find the cheapest pet insurance or because you wanted to find an energy tariff that suited your home and family. While this almost certainly helped you find great deals at the time, you’ve never gone back to them. But many of these sites have useful tools that you can use to find the cheapest supermarket in your area for the kind of weekly shop that you do.

Go on them each week to find out where the deals are and to make sure you’re not missing out on great savings.

Don’t neglect your energy tariffs and mobile phone bills though. You might well find a better monthly deal here too by regularly checking in.

Of course, you’ll need to make sure that you set yourself a realistic monthly budget and that you are also setting yourself a budget for savings on top of that.

Loans

It might be that saving up is going to take far too long and your vehicle isn’t going to make it, in which case you might consider a bank loan or something like a https://www.smilecarfinance.co.uk/locations.php.

Whoever you choose to borrow money from, try and opt for a lender with the lowest interest rate and in any case always try and pay back more than the minimum repayment each month to make a real dent in the amount of capital you’re paying off.

Deals

You’ll also need to think about the type of car you’re looking for. Will it be a brand new model, which has the advantage of coming with various warranties or a second-hand version which, though cheaper, will almost certainly have done a few more miles on the clock?

The key is to do some research into the kind of car you want, keeping an open mind if you can, and how much you plan on spending. Find out the going price for year and model you hit on and take this model with you to your nearest dealership.

With any luck you’ll be able to negotiate down to a price that suits everybody but don’t be afraid to walk away if it looks like it’s going too far out of your budget.

When you are planning on buying a new car and you need some help in getting there in terms of cash, then work out a plan that’s going to work out best for you, whether that’s low interest loan or a commitment to save. Stay within budget and you’ll grab yourself a bargain.