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Consider Going Used

You might well be keen on buying yourself a brand new car, but you should definitely ask yourself whether it is necessary. For one thing, everyone knows that buying a new car is one of the least effective purchases you can make; the moment you drive it off the forecourt, it has lost most of its value, so it can’t be considered an investment as such. Consider finding a used car instead; you will spend less upfront and you can still find a reasonable vehicle if you look around before landing on one.

Be Careful With Finance

One of the ways in which people manage to buy a new car is through finance. This is essentially a line of credit which enables you to get hold of the car of your dreams right now and pay for it later over time. However, this is potentially fraught with trouble, even more so than many other kinds of credit. A lot of people end up being mis sold car finance, for instance, which means that they end up paying more and might even be due compensation further down the line. So take care, and be sure to thoroughly research any finance you sign up for.

Follow The 1/10th Rule

If you are wondering how much is a reasonable amount to spend on a car, the truth is that it depends. But there are certain rules of thumb in place that a lot of people follow, and which you might want to consider following too. One such rule is the 1/10th rule which simply states that you should spend no more than a tenth of your annual gross income on a car, new or old. This is generally a fair cost and not so much that it would upend you if you have troubles with the vehicle down the line.

Think About Reliability

The reliability of a vehicle is one of the most important factors, and most reliable indicators, of how much of a good deal the car is likely to be. You may well pay little upfront for a car that has low reliability, but you will probably end up paying lots more in the future as various things go wrong with it, so it’s not really worth it. Check out the reliability index of any car you are considering buying before you buy it.