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The Ultimate Guide To Budget Used Cars

Compact Cars, Bridgend

December 18, 2017 at 12:34 PM

If you need a car but you're on a tight budget, what's the best solution?

Before making any decisions on what to buy you need to think about how many miles you'll do, your lifestyle, and most importantly your budget.

If you only use a car for weekly trips to the supermarket you won't need to invest a lot of money in buying a car. A cheap runaround will do just fine.

On the other hand, long motorway journeys are more comfortable in a car that has a bit of power behind it. Boot size may be an issue if you have a lot of equipment to carry around.

If you have a family you'll probably want a car with plenty of space. However, if you're single, a small 2 door car may be an ideal choice.

Is a budget car your best option?

If you're a student buying your very first car or you don't have a lot of savings, you need to consider a budget car. They're not only affordable to buy but also cheap to run.

Many dealers allow you to pay a deposit and take out a loan which gives you flexibility. Some offer 0% financing which sounds good. The repayment term is often short though which means higher monthly payments.

A low interest loan with an initial deposit can be a very affordable way to buy a car. For example, if you buy a used car at £2,500 and took out a 3 year loan at 7% interest, you'd pay £76.95 a month. 

You've also got to allow for tax and insurance as well as servicing and MOT. It's often a good idea to research these costs first so you don't get any nasty surprises! 

What if your credit score isn't great?

Many people with poor credit history and lack of funds feel trapped. Most finance companies won't lend money to anyone in this situation. 

Even if you can afford to pay the monthly cost of a new car it may still be out of reach if you have poor credit history. Your only option may be to either improve your credit score or save up for a large deposit.

Some car finance companies may be more favourable towards you if you can pay a sizeable amount towards your new car. However, depending on your financial situation this could take a long time.

Don't make the mistake of buying an old banger just because its all you can afford and you need a car. You'll only end up paying huge sums of money in garage repairs. This is certainly not a cost effective solution!

Pay as you drive, an affordable way to buy a car?

Compact Cars Wales have created a very affordable way to buy a car. No matter how bad your credit score you will be accepted. With a low deposit and the option of paying weekly or monthly, you can easily work out a budget that fits your needs.


Category: Blog