Buying a car is one of the biggest financial decisions you will make outside of buying a house. Although some more expensive cars might be out of your reach, there are ways that you can still get some wheels without going over your budget.
Here are three car options, then, that you might want to consider if you aren’t exactly flush with cash.
A small car with good fuel efficiency
Whether this is your first car or not, your budget will largely dictate the type of car that you should be looking for. Ideally, you want a car that is going to be fuel-efficient as well as cheap to insure and tax. Smaller cars tend to be cheaper insurance-wise, and manual cars are generally cheaper than automatics.
Smaller cars also tend to be cheaper to buy, so if you are looking for bad credit car finance, you might be more successful with a small car.
Although they are cheaper to run, there are still variables between manufacturers and models, so it is a good idea to do your research and ensure you get one that you can afford to use.
Buying used vs new
There are many pros and cons when it comes to buying new or used cars. Some of it will come down to how you intend to pay for the car. Buying used is generally cheaper when compared to the same model from new, so if you are buying a car outright, this may be the better option.
Saving up for a car can take a long time, so the other option is to get car finance that will help you spread the cost of the car over several months. Car finance is offered for both new and used cars, although it depends on your credit history as to how much you will be able to spend on a car when you take this route.
If you have a poor credit history or you are just starting out and haven’t built your credit history yet, you are likelier to be approved for a lower priced car than a more expensive model.
While new cars will cost less in terms of repairs, they are costlier at first, so this may be a affordability barrier to some people.
Petrol or diesel?
Although electric cars are considered to be more economical, they might still be a little too new to get on a tight budget. Petrol and diesel cars, however, can be found on a budget, but which is better?
Newer petrol cars are usually quite fuel-efficient and will go a long way on a tank of fuel. However, traditionally, diesel cars can travel further on the same amount of fuel. The cost of both has risen over time, with diesel now more expensive per litre than petrol.
You will need to weigh up the cost of fuel and how long it will last you to find the type that will be better for your budget.
When looking for the best car you can buy with your budget, you should look at all the associated costs to get a better view. It might be cheaper to buy a certain car if you look at the ‘headline’ price alone, but the other costs associated with the given model may be higher than some alternatives you could consider, so it is crucial to give yourself a broad perspective.