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Buying A Car - Setting A Budget

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Buying A Car - Setting a budget

Understanding your budget and getting a good price from the dealer is crucial if you don't want the car buying experience to leave a bitter taste in your mouth.

Look through our tips to get some pointers on making your cash work for you.

• Set a budget and stick to it, no matter what the dealer or finance company says you can afford.

• Work out how much cash you realistically have to spend after mortgage/rent, tax, bills, entertainment and other outgoings have been considered.

• Besides any repayments on the car itself, you also need to consider other running costs such as fuel bills, insurance premiums and servicing – these will cost you thousands each year. Look at our pence-per-mile or true-cost figure to see how much the car you've got your eye on will cost to run, on top of the loan/finance.

• Consider whether you really need a brand-new car. Depreciation is the biggest cost in owning a car, with the biggest drop coming in the first year. If you buy used, even just a one-year-old model, you could save plenty and still have two years of warranty protection left.

 

 


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