Vertu have noticed that searches for ‘new cars for new drivers’ have risen 26% over the past three months.
While new cars offer the appeal of modern features and warranties, they also come with different financial considerations that buyers should be aware of.
So, to help first-time buyers navigate the process without overspending, automotive experts at Vertu have shared guidance on common financial missteps to avoid.
Don’t focus solely on the sticker price
It’s easy to be distracted by the sticker price, but running costs are just as important.
Creating a full budget that includes not only the monthly payment but also fuel, insurance, road tax, and maintenance will give you a clearer idea of what you can afford in the long run.
Understand depreciation
When considering a new car, think beyond the immediate appeal of a brand-new model and consider its long-term value. This is particularly important if you expect to need to upsize your car in the future.
There are a few factors that affect how in-demand your car will be when the time comes to sell it on the used-car market.
Cars from trusted brands with strong resale demand, such as the Toyota Corolla, Ford Focus, or Honda Civic, typically depreciate more slowly. This is also true for cars with a higher fuel economy, that are cheaper to maintain, are ULEZ compliant, and that have high safety ratings.
Be cautious with long finance terms
Longer finance terms can make monthly payments more affordable and allow for a wider range of cars to choose from. However, some terms can result in you paying far more than the car is worth.
You should stick to a loan term that you can comfortably manage. Generally speaking, the shorter the term, the less interest you’ll pay overall. And don’t forget, there are plenty of options available, so you take time to research and understand what the best types of car finance are available to you.
Avoid rushing the process
First-time buyers are often eager to get behind the wheel, but slowing things down can lead to better results. That’s why it’s worth visiting a few different showrooms, comparing features that matter to you, and asking questions about what’s included in the price.
It’s important to take a few days to think things over before signing anything, which helps avoid unexpected costs and ensures the car is the right fit for their lifestyle.
Take advantage of manufacturer incentives
New car buyers can benefit from special manufacturer incentives, such as cashback offers, 0% finance deals, or trade-in bonuses.
You should research any available deals before visiting a dealership as there may be seasonal promotions that can save you money. Don’t hesitate to ask about potential deals or discounts, as you may be able to negotiate a better price based on these incentives.
