Here are some useful tips to help you get started
1. Can you afford it?
Work out your budget. It’s usually a good idea to take note of your money situation and work out your budget. This can help you decide how much you can put towards buying a car and whether it will be new or second hand. There are advantages and disadvantages to getting a new or used car. Generally, new cars drop in value practically from the minute you drive off, but may possibly hold their value over the longer term, depending on the make and model. A second-hand car is cheaper to buy, but make sure you check out its condition and find out as much as possible about its history. Your decision will depend on your budget and this will also give you an idea of how you’ll manage with the on-going costs.
2. How to pay
There are lots of ways you can cover the cost of buying, some more expensive than others. You might have saved up enough money during the years for you to afford paying in cash for the purchase of your car. You may be in position to negotiate a better deal if you pay in cash. If you borrow from a bank make sure you understand how much it will cost you over the life of the loan by checking the APR (Annual Percentage Rate), and think about how the value of the car may change by the time you finish paying for it. Be sure to shop around to get the right deal for your loan. You can decide to pay the dealer in instalments. Many dealers have different finance arrangements; find out how the different options work and which one may be right for you.
3. Other running costs
It’s not just the cost of the car you have to think about. You will also need to keep your car going, so remember to consider other regular costs such as fuel and service maintenance. Most of all, don’t forget the annual licence payment and motor insurance to keep your car on the road.
You have to take out motor insurance before you can drive your car in a public place. There are different levels of cover to choose from. Motor insurance protects you, your vehicle and other motorists against liability in the event of any accident. It is illegal not to have any form of motor insurance.
When looking for car insurance, don’t always settle for the cheapest insurance. It is important to understand the different types of policies available, and their limitations. Some policies will insure for more eventualities than others, and you need to make sure that you choose the correct policy without paying too much. Your car insurance policy should be based on your experience, driving style, age and affordability.
The cost of your insurance policy
People often grumble about rising car insurance costs. Why do prices go up? Clearly, there are many factors that influence the quote you will be given. Some are personal to you and others depend on the level of benefits you want from your motor insurance policy.
Below you can find those components which will greatly influence the premium you will pay for your motor insurance cover:
- the level of insurance cover;
- the type of vehicle;
- the age of the driver/s;
- your “No Claims Discount” (NCD);
- your past accident record;
- the nature of use of the car.
Below you can find a number of ways in which you can reduce your premium, some of these will not cost you a thing, while others will mean a little bit of investment in your vehicle:
- you limit the authorised drivers;
- you choose to increase the excess;
- you insure more than one vehicle with the same insurer;
- you have an approved car alarm installed in your vehicle;
- you also have a household insurance with the same insurer;
- shopping around to find the best deal.
Reducing your premium should never be at the cost of reducing the cover offered. Buying the cheapest car insurance can be the most expensive mistake you could make, especially if you are not covered when you come to make a claim. Making sure that your car insurance covers you correctly and meets your needs is more important than saving a few euros. It is important to note that insurance providers who offer cheap policies have generally stripped out certain segments of cover.
