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Buying a New Car in 2013: How to Get the Most for your Money

Posted April 16, 2013 by Lewis R Humphries to Frugality 1 0
This post was written by a EasyFinance.com Community member. The views expressed below may not reflect the views of EasyFinance.com.

Given the wider state of the UK economy, the relentless growth of the new car industry has come of something of a surprise. Although it has yet to be seen whether the recent budget announcement will have an impact on this level of prosperity, there is every chance that will continue unabated into the second financial quarter.

Nearly 400,000 new cars were sold in March in the UK, and this represented a 5.9% on the corresponding figures from this stage in 2012. While the release of the new 13 plate registration had an impact on this continued acceleration, increasing consumer confidence is also thought to be a more significant and tangible factor.

Purchasing an Affordable and Manageable New Car

While it is easy to get carried away with positive economic sentiment, however, purchasing a new car remains a big ticket purchase that requires a great deal of consideration. Keep the following points in mind before you commit to buying a brand new vehicle: -

Create a Budget before you Hit the Forecourts: One of the key mistakes that consumers make when buying a car is to hit the forecourts without a stringent budget in mind. Setting a budget is the first thing that you need to do when you consider buying a car, as it establishes a series of fiscal boundaries that will empower you to spend within your means. When it comes to establishing a budget, it is also worth remembering that the car will most likely be paid for through an agreed and inflexible set of monthly repayments. This means that your budget must include precise details of your monthly income and existing outgoings, in order for you to understand you rate of disposable income.

Aim to Target Lower Monthly Repayments: Once you have a budget in mind, you should  commit to adopting as frugal a mindset as possible. Just because your budget may allow you to purchase a car worth £7,000, for example, this does not mean that you cannot target similar vehicles that are available at cheaper prices. Be prepared to strike a compromise between the quality and cost of the car that you buy, and take the time to peruse your full range of market options. By buying a car that is functional and comfortably within your financial means, you can save money in the long term and also ensure that your vehicle is affordable should your circumstances change.

Keep an Eye of your Credit Score: Your credit score in an important factor when buying a new car, as it will influence your chances of securing finance and the precise terms of your agreement. If you have a manageable but imperfect credit rating, for example, lenders may choose to extend a financing package that has more stringent and unforgiving terms. This can have an impact on your ability to make repayments, so before you look to buy obtain a copy of your credit report and gain an understanding of your situation. If there are any anomalies or items that can be removed, apply to the necessary lenders have the changes confirmed as a matter of urgency.

About Lewis R Humphries: This post was written by Lewis, who is a financial and small business expert based in the UK. If you are looking to fund the purchase of a new vehicle, he recommends that you visit www.carfinance247.co.uk and make an enquiry.

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