After a mortgage or rent, a car can be one of your most expensive outgoings. Whether you buy a car outright, lease one or get one on finance, you can be sure that owning a car will set you back some pennies. That’s why it’s important to choose a car you can genuinely afford, both for now and in the long term.
Here are some tips for choosing a car that’s right for you and your family, without overstretching your budget.
Know what you’re up against
Owning a car comes with an upfront cost (unless it’s been gifted), but it’s the ongoing cost of a car that you need to consider. Some of the main expenses that come with car ownership include fuel, insurance, servicing and maintenance – all of which can add up significantly. When you get a car, it’s a good idea to keep a savings pot to cover any unexpected repairs – you never know when you might need it!
Consider a smaller car
If you want a more affordable car, consider a smaller one. Smaller cars can be cheaper to run, with lower fuel, road tax and insurance costs. They are ideal if you’re mainly a city driver, or if your kids are a little older and no longer need car seats and boot space. A Kia small car could be the perfect car for your family, while saving on your monthly costs. An alternative option is to choose a hybrid or electric car, which can also be cheaper to run than other cars.
Choose your finance option carefully
There are different ways to buy a car, helping you find the right finance option for your budget and circumstances. Car finance typically includes leasing, PCP or hirepurchase, as well as buying a car outright. A monthly payment option can be easier to manage, especially if insurance and maintenance are included. If you’d prefer to have a car as an asset, you could consider buying a second-hand car to enjoy the benefits of owning your car outright while paying a little less upfront than you would for a brand-new car.
Pick a car that fits your lifestyle and budget
Finding an affordable car isn’t just about buying the cheapest car on the market; it’s about finding the most affordable car that meets your needs. This could mean choosing a new family car that’s big enough for you, your kids and the dog, or it could mean simply finding a vehicle that gets you from A to B – that won’t break the bank. Assess your budget carefully and explore cars that you can afford to own comfortably and avoid any stress or strain on your finances.
Choosing a car you can afford is about looking past the price tag and thinking about the costs you’ll face month after month. The good news is that there are plenty of options out there to help you find what you’re looking for. Spend time researching your options so you can feel confident in your decision and choose a car that suits your lifestyle and your finances.
