Buying A Car On A Tight Budget Review
Need to buy a car, but don’t have much money to spend? Fortunately, you don’t need to splash out thousands on a car. Here are just several ways to buy a car on a tight budget.
Opt for a used car
Currently, the UK’s cheapest brand new car is the Dacia Sandero at £6995. The basic model doesn’t have air conditioning, central locking or a radio – and yet you can buy a used car for less than £1000 with all these amenities. Whilst used cars aren’t as reliable as brand new cars, you’ll save a lot of money up front by buying a used car.
Consider buying on finance
Buying a car on finance can be another way to cut upfront costs. In fact, there are some companies such as Saxon Bridge that charge no deposit. The catch of course is that you’ll be paying off the price of the car in monthly instalments with interest, so you need to be certain that your monthly budget covers this. Having a good credit score will help you to get better deals when it comes to interest.
Learn to negotiate
Many sellers will be willing to negotiate the price if you’re keen enough and they haven’t had any other interest. The key to negotiating is to not go in too low and to show enthusiasm. Sometimes walking away and telling a seller that you need time to consider can prompt them to lower the price.
Buy at the right time
Timing could also have an effect on the price if you’re buying from a dealership. At certain times of the year, you may be able to get cheaper deals on cars. January is one particular period when there is a low demand for cars and so many dealers charge more competitive prices. You could find that you’re also able to negotiate a better price by visiting a dealership mid-week rather than at the weekend. Some dealerships may also have weekly or monthly targets, making the end of the week or the end of the month the best time to negotiate discounts due to them being more eager to make a sale.
Research the running costs
The upfront costs may not be the only thing to factor into your budget. Running costs could be important too – these include fuel economy, insurance, tax and maintenance. Modern cars tend to be more fuel efficient and you’ll generally pay lower road tax. You could find that these cars are also more reliable. That said insurance may be higher on a relatively new car. You can use sites like Money Advice Service to calculate car costs.