Your Finance Tips
Your Finance Tips
What to Look Out for When Buying Your First Ever Car
What to Look Out for When Buying Your First Ever Car
Buying a car can be complicated at the best of times, but especially if you’re new to driving. With hundreds of makes and models out there, there’s lots to consider if you want to drive away happy when investing in your very first car.
Here, we provide a complete guide on what to look out for when buying your first car, with tips on whether to buy new or used, key things to consider, and our pick of the best cars for first-time drivers.
New or Used: Which Car Should You Pick?
In the market for a new car? It can be can hard to choose between buying a new or used model. With benefits and pitfalls for each, weighing up your options is a must – here we take a look at a few of the things you should consider.
Buying a New Car
In the past, new cars were off limits to most new drivers. They were too expensive to buy and insure, so most people opted for used instead.
Now, all that’s changed. With the arrival of flexible finance options like PCP (personal contract purchase), even young drivers can afford to buy new. Some manufacturers, like Peugeot, now actively target first-time buyers, offering payment options like Just Add Fuel which cover things like insurance, car tax, warranty, roadside assistance and servicing.
Here are the pros and cons of buying a new car as a new driver.
Pros
Reliable – New cars are less likely to develop faults and are also covered under warranty, so you won’t be hit by unexpected repair bills.
More choice – The world’s your oyster when buying new – just remember that some cars are pricier to run and insure than others!
Better features – Buy new and you’ll get the latest features, so your car won’t feel out of date within the first few months of ownership.
Efficient engine options – New engines are more efficient and economical, reducing the environmental impact and reducing fuel bills.
Cons
Price – New cars are the most expensive option, but then you are covered under warranty and can expect strong residual value. Look around for the best finance options to make sure you’re getting a good deal.
Depreciation – New petrol and diesel cars lose their value quickly, with the AA estimating that most new cars are worth 40% of their original value after 3 years. You can read more about car depreciation here.
Higher tax and insurance costs – Insurance rates are higher for new cars, simply because they’re more expensive. Car tax is also at its highest in the first year of ownership.
Buying a Used Car
Depending on your budget, buying a used car is probably the most cost-effective option if you’re a new driver. There are a huge range of used cars available, both from private and commercial sellers, so you should easily be able to find a make and model that meets your requirements and is within your price range.
Sales of used cars have come on a long way in recent years. Now, major car retailers offer similar payment options for used cars as they do new, so there are lots of ways to help finance your used car purchase.
Here are the benefits and pitfalls of buying a used car.
Pros
Cheap to buy – If purchase price is important to you, used is by far the best way to go. Even nearly new used cars (those around 1-2 years old) are significantly cheaper than new models, so you get more freedom of choice if you’re on a shoestring budget.
No car tax hikes – Recent changes to car tax mean that motorists pay more for new cars than used in the first year, so buying used promises the lowest possible tax rates.
The option to haggle – Whether you’re buying from a private or trade seller, haggling down the price is an option should you decide to buy used. There’s less wiggle room on price for new cars, but the same doesn’t apply for second-hand sales, so it’s worth trying your luck.
Minimal depreciation – Because a car has already lost value, depreciation isn’t as big a deal when buying used, so you won’t feel like you’re losing money.
Cons
Question marks on reliability – Buying a used car, particularly from a private seller, can be a gamble. Make sure you find out as much as you can about a car’s history to ensure you’re not buying a heap of junk.
No warranty – A warranty is a great fall back should something go wrong with your car but used cars often don’t come with one – leaving you vulnerable to unexpected repair bills.
Suspect vehicle history – Most used cars will have been driven by a handful of previous owners, so it’s vital that you have a good look at the vehicle history to find out how well it’s been cared for over the years. If the current owner can’t produce a full service history, steer clear.
Buying a car can be complicated at the best of times, but especially if you’re new to driving. With hundreds of makes and models out there, there’s lots to consider if you want to drive away happy when investing in your very first car.
Here, we provide a complete guide on what to look out for when buying your first car, with tips on whether to buy new or used, key things to consider, and our pick of the best cars for first-time drivers.
New or Used: Which Car Should You Pick?
In the market for a new car? It can be can hard to choose between buying a new or used model. With benefits and pitfalls for each, weighing up your options is a must – here we take a look at a few of the things you should consider.
Buying a New Car
In the past, new cars were off limits to most new drivers. They were too expensive to buy and insure, so most people opted for used instead.
Now, all that’s changed. With the arrival of flexible finance options like PCP (personal contract purchase), even young drivers can afford to buy new. Some manufacturers, like Peugeot, now actively target first-time buyers, offering payment options like Just Add Fuel which cover things like insurance, car tax, warranty, roadside assistance and servicing.
Here are the pros and cons of buying a new car as a new driver.
Pros
Reliable – New cars are less likely to develop faults and are also covered under warranty, so you won’t be hit by unexpected repair bills.
More choice – The world’s your oyster when buying new – just remember that some cars are pricier to run and insure than others!
Better features – Buy new and you’ll get the latest features, so your car won’t feel out of date within the first few months of ownership.
Efficient engine options – New engines are more efficient and economical, reducing the environmental impact and reducing fuel bills.
Cons
Price – New cars are the most expensive option, but then you are covered under warranty and can expect strong residual value. Look around for the best finance options to make sure you’re getting a good deal.
Depreciation – New petrol and diesel cars lose their value quickly, with the AA estimating that most new cars are worth 40% of their original value after 3 years. You can read more about car depreciation here.
Higher tax and insurance costs – Insurance rates are higher for new cars, simply because they’re more expensive. Car tax is also at its highest in the first year of ownership.
Buying a Used Car
Depending on your budget, buying a used car is probably the most cost-effective option if you’re a new driver. There are a huge range of used cars available, both from private and commercial sellers, so you should easily be able to find a make and model that meets your requirements and is within your price range.
Sales of used cars have come on a long way in recent years. Now, major car retailers offer similar payment options for used cars as they do new, so there are lots of ways to help finance your used car purchase.
Here are the benefits and pitfalls of buying a used car.
Pros
Cheap to buy – If purchase price is important to you, used is by far the best way to go. Even nearly new used cars (those around 1-2 years old) are significantly cheaper than new models, so you get more freedom of choice if you’re on a shoestring budget.
No car tax hikes – Recent changes to car tax mean that motorists pay more for new cars than used in the first year, so buying used promises the lowest possible tax rates.
The option to haggle – Whether you’re buying from a private or trade seller, haggling down the price is an option should you decide to buy used. There’s less wiggle room on price for new cars, but the same doesn’t apply for second-hand sales, so it’s worth trying your luck.
Minimal depreciation – Because a car has already lost value, depreciation isn’t as big a deal when buying used, so you won’t feel like you’re losing money.
Cons
Question marks on reliability – Buying a used car, particularly from a private seller, can be a gamble. Make sure you find out as much as you can about a car’s history to ensure you’re not buying a heap of junk.
No warranty – A warranty is a great fall back should something go wrong with your car but used cars often don’t come with one – leaving you vulnerable to unexpected repair bills.
Suspect vehicle history – Most used cars will have been driven by a handful of previous owners, so it’s vital that you have a good look at the vehicle history to find out how well it’s been cared for over the years. If the current owner can’t produce a full service history, steer clear.
