Finance Your First Car Without Huge Debts
Learning to drive is an exciting rite of passage for many young people. Now that driving lessons have resumed in the UK, it will not be long before the roads are packed full of new drivers.
One of the most exciting parts about passing your driving test is choosing your first car. Many new drivers will already know what car they want. Having chosen the exact make, model, and colour months, if not years, in advance.
The reality of purchasing your first car can be very different. As many people pass their driving test while still in full-time education, stumping up the cash for a car can be difficult. Especially if your parents are not able to help you finance it.
Older first-time drivers, more common now that younger people are forgoing driving lessons, might also find it difficult to find car financing. For people with high levels of debt or bad credit history, this can be especially true.
Choosing the right first car is important as there are many cost implications involved. The car you choose will determine your insurance premiums, road tax, fuel costs and more. As exciting as purchasing your first car is, make sure you understand the costs, and research your options before you commit to purchasing your brand new wheels.
Monthly finance plans are one of the best ways to finance your new car purchase. Providing you can meet the monthly payments; a finance plan can make it easier to buy the car you want.
Even if you have a bad credit history or high debt levels, there are bad credit car finance plans available to help get you on the road.
Again, your initial budgeting will help you to understand how much you can pay a month. This will help you when applying for your finance plan. As the finance provider will be able to see that you are able to pay.
There are several factors you will need to consider when choosing your first car. The most important factor is how much you can afford to spend. This includes the car itself, whether that’s a one-time payment or a monthly plan.
You will also need to budget for your monthly running costs of your new car. Principally, your monthly fuel spends, which should be based on your usage. It is important to choose a car that will not be expensive to run as your first car.
Then, consider how much you can afford to pay for your yearly insurance premiums. Do a comparative search to find the best deal for first-time drivers. Usually, premiums are higher as you will not have any no-claims discount yet.
Other outgoings to consider in relation to your car include any servicing fees you will be responsible for in the first year and road tax. The better you can budget ahead of your purchase, the more enjoyment you will get from your new car.