What to consider when buying a new car

The decision to buy a new car can be overwhelming, with so many options on the market. And with significant shifts such as advancements in electric vehicles (EVs), stricter environmental regulations and changing consumer behaviours, it can be difficult to know which vehicle to choose.

If you’re struggling with the decision, our tips can help narrow down your options and ensure you get a car that ticks all the right boxes.

Budgeting

The first step in buying a new car is setting a clear budget. Evaluate your financial situation, considering your savings, monthly income and any outstanding debts. It’s important to account for the initial cost of the vehicle, including any down payment as well as ongoing expenses such as insurance, fuel and maintenance costs.

Financing options can be a good way to spread payments, but they can incur high interest fees. It’s important to work out the total cost over the contract period and ensure you can afford any long-term payments.

Determining your needs

Consider what you’ll primarily use the car for. This could be daily commuting, family trips or occasional leisure drives. The size and type of the car—whether it’s a compact city car, a spacious SUV, or an electric vehicle—should match your lifestyle.

Fuel type is another critical consideration. With the increasing focus on reducing emissions, electric and hybrid vehicles are becoming more attractive. However, petrol and diesel cars can still offer advantages in terms of range and refuelling convenience.

Test driving multiple vehicles is the best way to assess a car’s suitability. It can be a good idea to insure a car for one day to give you enough time to test drive a potential vehicle.

Considering long-term costs and resale value

The long-term costs of owning a car can sometimes outweigh the initial purchase price. Fuel efficiency is a significant factor, especially with fluctuating fuel prices. Electric vehicles, while more expensive upfront, can offer lower running costs over time due to cheaper electricity compared to petrol or diesel. It’s also important to take depreciation into account if you’re planning to sell in the future.

Warranties and service plans

A comprehensive warranty can provide peace of mind by covering repairs and defects for a specified period. Most new cars in the UK come with a manufacturer’s warranty, typically ranging from three to seven years. Extended warranties are available for those planning to keep their car longer. Service plans can spread the cost of routine maintenance, helping you manage your budget more effectively.

Buying a new car is a significant investment so make sure to carry out thorough research before committing to your purchase.