Passing your test and buying your first car is such an exciting prospect, but you need to make sure that you are fully prepared with enough information to make the purchase. It is essential that you take your time in deciding and know what to look out for. We have put together this handy guide with things you should know before making your first car purchase, so hopefully, you will have a better understanding of the process and your options.
Check Your Credit Score
If you have poor credit or no credit at all as a young driver, you may be worried about securing car finance. This is where bad credit car finance comes in. With this type of finance, lenders may base their decisions on affordability, rather than your whole credit history, factoring in your current income and any essential monthly expenses to make sure you can sustainably afford repayments. You can also improve your credit score by ensuring you are on the electoral roll, updating addresses on your bills, paying your bills on time, and avoiding applying for too many forms of credit in one go.
New Or Second Hand?
The main question that you may be asking yourself is whether you want a new or used car. While a new car is a special purchase, new vehicles often have an initial depreciation and could carry higher costs such as insurance compared to used cars. However, if you are particular about the appearance of your car, you have more options when it comes to paint colours and finishes. With used cars, you may be restricted in customisation, but they can still be bought through a dealership for security and tend to be more affordable.
Where Will You Buy Your Car?
There are a wealth of places to purchase your first car depending on whether you opt for new or used, but most people will purchase from a manufacturer’s network, an independent dealer, or directly from the owner. However, there is no solution that works for all and each option has a few things to look out for:
- Manufacturer’s networks have a dedicated and knowledgeable service team, so they will make sure that a used car’s service history is legitimate and will usually be able to guarantee the car’s performance for a certain period of time.
- Independent dealers will offer a variety of makes, models and years on used cars. They are typically better value and more affordable than buying from a dealership.
- Buying a car at auction may involve purchasing on appearance rather than performance. You may land yourself a bargain or wind up with more than you bargained for, so this could be risky.
- Private sellers do not have the same consumer rights as manufacturer’s networks or independent dealers, so you should check that the car is being sold legally, without any stolen or finance markers, as well as ensuring it is running well. However, you may be able to get yourself an affordable deal.
When starting your first car journey, there are a few things to consider and keep in mind, but it is beneficial to be wary to ensure a smooth process. We hope that this guide has helped you to make some informed decisions ahead of looking for your first car, but if you need more help, please seek impartial support from the Money Advice Service.
