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New cars

How to cut the cost of a new car

There are several things to think about when you’re in the market for a new car, not least the purchase price.

Hefty insurance and running costs also need to be taken into account, so you’ll need a budget in mind and a clear idea of all the likely costs and options.

Smart car buying

There are lots of ways to pay for a new car - and some will save you more money than others.

Using savings is the cheapest option, while personal loans are usually the best way if you are borrowing money to buy, but only if you have a good credit history.

If you have a bad credit rating, you may need to choose an alternative method to buy a car. Our guide, what’s the best way to finance buying a new car presents all the main options.

Getting the best deal on insurance

Car insurance can prove very expensive, especially if you are a young or inexperienced driver. Other factors insurers consider when setting your insurance premium, include the type of car you have and how many miles you’re likely to drive over the year.

Given insurance quotes will differ it makes sense to shop around on comparison websites. Be aware that levels of cover will differ, and some will include or exclude extras, such as breakdown cover or windscreen insurance, as standard.

It’s also worth thinking about the policy excess, which is the amount you’d stump up following a claim for loss or damage before the insurer steps in. The higher the excess, the lower your insurance premium.

Don't let your budget be taxing

The amount of road tax you pay is either down to the emissions or the engine size of the vehicle. If you go for something with low emissions, the road tax will be considerably lower than for a gas-guzzler.

Road tax can be paid for either six or 12 months – with an annual payment working out the cheaper of the two options.

Fuel for thought

Keeping your fuel costs down depends on a number of factors. Buying a car with good fuel consumption figures will of course help – as a rule the bigger the car's engine the more fuel it’ll use.

Fuel isn’t cheap, so it pays to shop around for your fuel, as a rule of thumb, supermarkets often have competitive deals on fuel.

Servicing and maintaining your car

The RAC says it costs an average of £472 to maintain a used car over a year.

This includes servicing and the cost of an MOT. Some firms sell car warranties which pay out following a break down and repairs. Others even cover the cost of an MOT as part of the premium, but it’s important to check what you are paying for.

It may also be worth registering for breakdown cover, so you can call for help if you are stranded. Some providers will fix your car as part of this protection.


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  • Nick / 9 May 2018

    I always wondered whats the difference when getting a car loan between going to the bank like Barclays Bank or going to a specialist car finance company like Get Me Car Finance or Car Finance 247.

    Why would people use the latter and not just get a car loan from the bank where there are no restrictions on where i get my car from ?