As I write this blog post, I am currently in the process of looking for my next car. I have a car at the moment, but because of a change in circumstances I need to upgrade to something more practical than a 3-door coupe! I do like driving my existing car, but it’s got to the point where I spend a lot of money on it to keep it on the road (it is a 15-year old car, after all).
As much as I would love to go and buy a brand new car, I simply don’t have the funds to do so. And, to be honest, I don’t think I’d want to either, given that depreciation rates on cars are so extraordinarily high! In case you didn’t know, depreciation refers to when something (like a car) loses value over time.
I actually want to buy a BMW X5, and having seen a few models for sale from Saxton 4×4 I know that they are well within my price range.
Being the sort of guy that relatives and friends come to when they want advice on buying a car or the best ways of buying one (I’m a self-confessed petrolhead), one of the questions I often get asked is “how I can buy my next car for less”.
I thought I’d share with you folks today some of the secrets to getting the car you want at the price you want. Here is what you need to know:
Set a ceiling limit
Many people often end up paying more for a car than they wanted to, simply because they get caught up in the moment, so to speak. It is very important that you have a limit of how much you want to spend on a car and you stick to it, no matter what.
I’ve seen friends that have done the complete opposite and they find that they are completely broke each month because they bought an expensive car they couldn’t really afford in the first place!
Pay in cash
I realise that not many people can just walk into a car dealership and buy a car in cash, but it really is the best way to pay for a car! Most finance deals, loans and credit cards will charge you interest, and so you will ultimately end up paying more for a car than you had originally anticipated.
If you’ve still got a car that you can use, or you can just as easily use public transport for now, I would recommend doing that and saving up like mad for your next car. Trust me, it will be worth it!
Pay on a 0% interest credit card if you can’t pay by cash
Do you have a really good credit score? If so, consider applying for a credit card that offers an introductory 0% APR rate for the first 12 months. I would only recommend doing this is the car you want to buy is worth no more than £3,000, as that is likely to be the most amount of credit you will be given.
You will obviously need to pay the card off within 12 months (£250 a month for a £3,000 car), but if you can’t, organise a low interest loan to pay off the credit card otherwise you will end up paying interest on interest!