There’s nothing more annoying than buying a car and realising you could have got a better deal. With the cost of living in the UK higher than it has been for many years and second-hand cars becoming increasingly more expensive, UK drivers don’t want to be spending more than they already have to. In order to get a better deal, you can take into consideration the top 5 car buying mistakes that cost you money before you even start shopping for your next car!

 

• Not checking your credit score first. 

If you’re looking to buy your next car on finance, your credit score plays a crucial part in the buying process. You’d be surprised how many people expect to buy a car on finance without even knowing what their current credit score is. A higher credit score can help you get approved more easily, get a lower interest rate, and also gives you more negotiation power with different lenders. Checking your credit score before you apply can be a good place to start and then see if you need to make any improvements to your credit situation to get a better deal. It can be harder for those with lower credit scores to get approved for finance as they pose a higher risk to lenders.

 

 

• Taking the first finance deal you are offered. 

Typically, the most popular way to get a finance deal is to apply for finance with the dealer where you have found your chosen car, but you could be missing out on an even better offer. Taking the first deal you are offered may not be the most cost-effective for your circumstances. Using the finance first route and applying with a reputable broker for car finance can help to compare a number of lenders at once! A broker works on your behalf to help you get the lowest interest rate from a wide range of lenders and they are usually free to use. Instead, brokers charge the lender for the introduction if you take up the finance with the lender.

• Not checking insurance rates of your chosen car. 

One big mistake many car buyers make is not checking out how much their chosen car would cost them to insure. It can be worth getting an insurance quote for the car you’re interested in buying before you sign on the dotted line. This can be especially true if you’re looking to pay for your car insurance and car finance monthly as it may be out of budget. Your monthly budget for a car should include all payments you will need to make such as finance, road tax and insurance to give you a clearer idea of how much it costs to own a car.

 

• Not researching market value of cars in your budget. 

When you’re buying a used car, it can be worth checking the price of cars at local dealers too to get an idea of the market value of the car you’re interested in. By doing so, you can get a better deal elsewhere or use your newly found knowledge to negotiate with the dealer to get a better price.

 

• Being too scared to haggle the price.

Having the confidence to haggle with a dealer may not come as easy to everyone but what’s the worst that could happen? Once you’ve researched the value of similar cars in your area, it can give you more negotiation power if the dealer down the street is selling a very similar car for a lower price. Negotiation can also be as easy as setting a budget you can afford and letting the salesman know. They work on a commission basis and will help you get the car you want in order to get the sale.