February 16, 2013
Buying a car is always a big decision that requires a lot of thought and will probably thrust you into the heart of several tedious debates with other car owners about whether you should go for a brand new one, or a pre-owned one.
Like most things, this area isn’t black and white. There are benefits and disadvantages to both options. Ultimately, everyone’s case is different, so you need to consider what is most appropriate for you, before you go off Googling ‘loans UK’ to get your hands on some cash for the purchase.
This article has been written to illuminate the pros and cons for you.
Getting what you want
If you’re buying new, you will pretty much be able to get exactly what you want in terms of the vehicle’s configurations, right down to the right shade of red you want the car in. All the specs will be completely customisable and you’ll get the car just the way you want it.
On the other hand, if you want to save money and have fewer options when it comes to specs, go for a used car. In fact, pre-owned car dealer websites are now designed to allow you more choice, in terms of searching for the right car for you, with your perfect colour and so on.
Think about the long-term
When you buy a new car, you’ll usually get a three-year warranty for all the parts of the car. This is one of the most attractive aspects of buying a new car from a dealership. It’ll give you total peace of mind.
Then again, it is now possible to purchase cover from independent warranty companies. They might not be as thorough as the warranties you’ll get from brand new car purchases, but if you want to save money, this is what you should be going for.
This doesn’t seem as straightforward as it should. You would think that a new car would have less maintenance costs than a used one, as the latter will be more subject to wear and tear.
However, with a used car, you won’t have to pay premium rates to have it turned upside down at your dealership’s garage. You’ll be able to pay lower prices at independent workshops. You’ll also be able to buy used parts and salvaged materials instead of purchasing brand new ones.
Thinking about the environment
Overall, it’s clear that newer cars have far lower pollution levels than older ones. Some critics note that these cars still take quite a lot of resources to build, though. Used cars won’t have the same low pollution levels, but then again, you have to structure your needs around the car.
If you’re not really going to be using a car that much, you might want to buy a pre-owned one.
February 13, 2012
Once you’ve identified your next car, you’ll need to think carefully about how you finance it, as the wrong decision could cost you hundreds over the finance term’s lifetime.
Your main options, if you don’t have sufficient savings to buy outright or pay off the balance after a part-exchange on your existing vehicle, is to look at personal loans or think about leasing. There are pros and cons to each and suitability will vary between individuals.
Loans are still the most common way of financing a car purchase and there are many of them on the market. Ideally, you’ll have some savings with which to put a deposit on the car down and then borrow the balance. Don’t simply go for the finance offered at the dealership, as it can often have an interest rate as high as a credit cards. Go online instead and use a price comparison site to search the full range of loans that suit your requirements and circumstances. These might be provided by banks or online lenders and many can be applied for online and have the money in your account very quickly.
With leasing, you don’t buy the vehicle, you merely hire it. The monthly rental charge generally equates to the depreciation that occurs to the car over that period, plus interest and other costs. This means that the car make and model has a strong bearing on the monthly charge. Those which have the steepest depreciation when new or nearly new will cost more. At the end of the leasing period, you can either buy the car or take up a new leasing deal. These tend to be good for buyers who want a newer car without the hassle of maintenance costs. However, there are high charges if you go over your agreed mileage limit and you’ll need to take out full comprehensive insurance, rather than just a basic third-party policy.
Which Option to Choose?
To make this decision, compare the cost of buying the car versus leasing it. You can either do this manually, or there are calculators available online to help you work out your costs.
If you buy a car, you’ll pay for insurance through sites like MoneySupermarket.com, servicing and maintenance, road tax, breakdown cover, depreciation, the cost of servicing the loan and other charges and costs. With leasing, you’ll pay the monthly rental payment and car insurance.
When you compare the two with real figures, it should be easy to see which will leave you better off. Leasing sometimes works out well as it allows people to acquire better cars and there’s no problem about selling them at the end of the lease period. If you have a good credit rating, you can often get a range of quotes and then play leasing companies against each other to get the best deal.
With loans, however, you have the option of buying a car that you’ll own outright eventually and there are some competitive deals on loans available in the market at the moment.
November 23, 2011
All of us will need to purchase some type of insurance at some point in our lives. Common types of insurance are offered out to the public as a safety net to preserve our quality of life, our material possessions, our assets and the wellbeing of our families and loved ones. Without insurance, a major life event such as a long term illness or a tragic accident could be devastating to the home environment and the people that share it with us.
Choosing the right insurance for your lifestyle
Purchasing insurance can cover against a world of problems however, choosing the wrong insurance can also be problematic. It is important to make sure that the insurance you purchase is right for you. Consider the following before you buy.
What do you need to cover?
Do you have a very lucrative career? Do you have a valuable home with a large mortgage outstanding? Do any of your close relatives have a history of major illness? Think about the aspects of your life that you could not live without. For example, if your health is important to the maintenance of your career, family life and hobbies, then critical illness cover might be the right choice for you.
Why do you need cover?
If you have a partner and children to support, then it is more than likely that caring for them is your top priority. What would happen if you couldn’t care for your family anymore? What would happen if you weren’t around anymore. Obtaining some life insurance quotes will give you an insight in to how your family could be looked after if anything happened to you.
How much cover do you need?
When looking for a new insurance policy it is important to consider exactly how much cover you will need. It can be tempting to choose insurance policies that require a smaller monthly fee. However, smaller monthly payments usually indicate a lower amount of cover, which means when the time comes to claim you may be left short. Particularly when looking for mortgage life insurance, consider what your monthly payments are, how much your property is worth and how the economy might affect the amount of your mortgage payments or property value.
Finding the right insurance policy
After considering the above top tips to deciding on the right type of insurance, it’s time to start shopping around for the best possible policy for your needs. Being ready with a list of requirements will prepare you to adequately assess any insurance quotes that you obtain. Obtaining at least 3 quotes for anything is always advisable, and try to source quotes from a range of resources, i.e don’t depend solely on comparison sites or the companies with the most prominent advertisements. Whichever policy you choose peace of mind for you and your family should be the key decider.
July 20, 2010
Now more than ever you have to be smart about auto loans. When you need to get a new car then you may not have a choice about that but you can be smart about the whole car buying and auto loan process. Read more
March 12, 2010
Getting an auto loan with bad credit is something people rarely talk about. Aside from offers on TV, most people do not want to admit that they have bad credit. There is a stigma attached to having bad credit that far exceeds any negative associations that financial mismanagement should have. Read more
March 5, 2010
The government is good at inventing acronyms and there is a new one consumers need to be aware exists. Referred to as 2MP, the acronym stands for Second Lien Modification Program. The program is another loan modification program backed by the government that is intended to help consumers stay in their homes. Read more
February 19, 2010
It has been a long recession and it is not over yet despite signs of economic recovery. Consumers have been dealing with an incalcitrant banking industry that has been busy foreclosing on homes and cancelling credit cards. In 2009 the mountain of debt and troubled loans seemed too high to climb, but apparently the peak may have finally been reached. Read more
February 11, 2010
Homeowners facing foreclosure had hoped the government’s loan modification programs would work smoothly making it possible to remain in their homes with lowered payments. Though the process has been slow, thousands have managed to get the paperwork completed despite a lot of paperwork delays. But thousands more have been unable to close the new loans. Read more
February 5, 2010
Calling something the only financial rule you will ever need sounds a bit grandiose but it gets your attention. Plus, it’s kind of true. Everyone had their own unique financial situation so everyone needs their own game plan but there is one rule that should be kept in mind at all times. Don’t buy something if you can’t afford it. Read more
December 28, 2009
Lower car payments help you to get by on a monthly basis but they usually come with a price. This price is easy to overlook because it seems like you are paying less each month, and you are, but you keep paying for a greater period of time and that is how you end up paying a lot more for your car without realizing it. Read more