The prospect of buying a brand-new car is an exciting one, especially as some of the newest models give access to the latest features in terms of safety, performance and comfort.
It’s vital you give your decision careful consideration though, as different needs, budgets and features, means finding the right option can be confusing.
That is why we’ve put together our Warranty Direct guide on what to look for when buying a new car.
Before you start looking at favoured options, you should finalise a budget and know how to maximise it. Some will be able to buy a new car outright, but many of us will need to consider finance options. Some of the most cost-effective finance deals are available with 0% APR and if size is not an issue smaller models can be a good option as many are available from as little as £150 per month.
How much your loan costs will depend on your credit history, and knowing this can be useful as it will give a better idea of what to expect from lenders. The Consumer Credit Act allows consumer access to credit reports by post or online.
Taking a more practical view when it comes to vehicle choice is a good way to pick a car that’s best for the long-term. Whilst a small sports car may retain its value well and be suitable for your current lifestyle, it might be completely inappropriate for your needs a few years down the line.
Economy, in terms of MPG and fuel type, will also be important with the new diesel tax on the horizon. Smaller petrol cars will be good to consider after this change, as they will most likely retain their value better and have lower road tax.
Features and extras
Motoring technology is advancing at an unparalleled rate and in-car systems such as WiFi, 4G connectivity and voice control are becoming commonplace. However, technology will continue to develop features such as parking assist, night vision cameras and autonomous safety features, meaning more improved safety and comfort.
Assessing and researching these latest features will allow you to work out which deals are the best value for money when it comes to meeting your own, personal requirements.
Models that hold their value
The biggest issue when buying a new car is they can lose their value quickly. Most cars depreciate at a rate of around 20% per year over the first three years of ownership. Some models shed cash quicker than others, meaning you’ll get a lot less when you come to sell it on.
It’s important to research which vehicles usually retain their value better than others, such as budget SUVs or smaller sports cars.
For more information on depreciation, you can also consult our guide.
You can guard against any potential loss of value by investing in a GAP insurance policy, which is particularly worthwhile if you’re paying for a new motor on finance.
When it comes to a car, assessing your needs, financial situation, and forthcoming industry developments will mean you’re well-placed to get the maximum for your money and your vehicle will retain more value for longer.