How to Afford a Car (and Keep Ownership Costs Lower)
If you’ve always wanted a car but thought of them as either a luxury with local public transport available or too costly, it’s worth taking another look. Affording a car isn’t as difficult as it used to be because there are ways to hold down the cost and/or to reduce the upfront expense. Here are some suggestions on how to make a car a little bit more affordable.
Find the Cheapest Petrol or Diesel Prices
If you’re in the UK, then the PetrolPrices app available for both iOS and Android will save you money over the years.
Based on the geolocation on your GPS, the app can zone into the local known prices for various petrol stations nearby. This lets you decide which one is worth making a detour for or plan a visit on the weekend. While the differences are just a few pence per litre, this adds up the more driving you do for commuting and personal use.
Able to Delay? Save Up First
The purchase cost for a second-hand or even a new vehicle is a bit of a stumbling block for many people. However, if you don’t need a vehicle right away, saving towards a car will reduce the total sum needed for financing later. Also, should you be worried about qualifying for a loan or if you can borrow enough, needing less is better.
Furthermore, it’s worth noting that many types of car finance require some form of deposit. Therefore, purchasing with no money in your bank account isn’t always possible either.
Choose the Right Finance Deal
There are multiple ways to purchase a car in the UK. Used cars are a significant segment of this market. Second-hand car purchases hold their value better too because you’re not eating a steep depreciation in the first six months with a new vehicle.
Choosing between Personal Contract Hire, Personal Contract Purchase, Hire Purchase, and other options is tricky. Each has pros and cons, depending on whether you wish to own the vehicle outright once the payments have ended. At ChooseMyCar, for example, there are articles on which financing option could be best in your situation, as well as used car finance deals.
Shop Around with Insurance
As a new vehicle owner, it’ll be difficult to keep your insurance costs lower. More experienced drivers generally pay less to insure their vehicle if they’ve not gotten into any recent accidents. Even as a new driver, you can pay less by finding a more affordable insurer. Also, paying a year in advance – not monthly –often saves money vs paying by instalments.
Plan Your Trips in the Car
When on a tighter budget, planning the car usage before hopping behind the wheels helps to reduce the petrol bill. For instance, making a list of errands and other reasons to drive allows you to batch these tasks together. Also, when planning a route and avoiding roadworks, it’s possible to spend less time with the engine running. Little things like this will cut your fuel consumption by 5-10%. While the purchase cost of a car and owning one are steep, by using effective strategies to either spread the cost or lower it becomes affordable for more people.
