Getting a New Family Car – How to Spread the Cost
Getting a car is a big financial decision, and even more of a big decision when you have a family to think about. This post takes a look at the options you have for spreading the cost of a obtaining a car for you and your family.
Buy Used
Buying a used car is a great way to beat depreciation car value over time. In the first three years of ownership, a car can depreciate by up to 60% of its initial value. So it’s very much worth checking out your options for buying a used car.
Choose a reliable model and manufacturer when you’re looking to buy a used car – do your research into what’s best for your money and your needs and you could stand to save a lot of money as opposed to buying new.
Why Not Buy a New Car?
Whereas buying a new car and selling it on after use can mean the value plummets, buying used means you get the car you want to own for a reduced sum in the first instance. Providing you keep the car well maintained, serviced and in full working order, you can sell it on if you choose and won’t lose out on the initial value you stumped up.
There are other options such as getting a personal loan for a new car that will work for you if you can keep up with monthly repayments, but with a family and potentially a mortgage, fixed monthly repayments may put a strain on finances.
Leasing Deals
Presuming you want to keep your family car, the option for a hire purchase is one to rule out. However, investigating direct dealership finance, or finding a leasing deal where you get the choice to own the car at the end of the term can be a good route to go down as it’s depreciation-busting. Check out John Clark for a Scottish dealership that offers leasing.
Why? Because you’ll have the benefit of a new car without any longstanding issues, such as wear and tear from a previous owner, and the fact that you’ll have the latest technology and safety features. Family budgeting can be tight, but with a combination of the right leasing deal, decent APR and affordable monthly payments, this could be right for your family.
The downside is the fact that circumstances can change in the course of your lease, and you may be subject to mileage restrictions. Dealerships are often flexible with their offers, so make enquiries.
As with all financial decisions of this magnitude, research and comparison is key to determine what’s going to be best for your particular circumstances.
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