9:45 AM Sep 23 2022
Once upon a time, buying a car was easy – an often fun, though sometimes risky, lesson in the art of negotiation.
The buyers’ goal was to try to figure out what price they could get for the price displayed on the car’s windshield. In the meantime, the dealer knew how much leeway there was in the price and would seek to justify it by highlighting the car’s attractive features.
As an occasional car buyer, I’ve been told there are two keys to success: investing time in the negotiation process, a strategy that may require a return visit to continue negotiations; And never fall in love with a car – be prepared to walk away from the bargain.
How times have changed. Today, choosing a new car is the easy part. Financing it has become considerably more complex, especially as interest rates are gradually trending upwards.
A quick online check shows that the interest charged on car loans generally costs between 11% and 19.9%, although one of the well-known banks is charging borrowers a fee of up to 29.9%. Interest rates may have gone up recently, but only to 1.75%, not 20%.
The British have a complex relationship with cars, not least because it has the potential to be one of the most expensive purchases we are committed to making. However, obsessing over the price of a car is perhaps the biggest and most costly mistake that buyers make.
Often people buy a car and think that’s the end of it even though their new car often costs a lot more than they planned to spend. There’s maintenance, MOT, insurance costs, fuel, parking, and regular cleaning to get you started, but many people don’t have a realistic understanding of how much it actually costs to own.
Online car experts assure that you should never spend more than 10% of your total annual income on buying a car, thanks to the long list of extra expenses you are virtually guaranteed to incur.
On top of that, there are maintenance costs and similar costs that will leave a hole in your wallet or purse. In fact, the more frequently you are behind the wheel, the higher your maintenance bill will be. Since a car is made up of thousands of moving and fixed parts, it is almost inevitable that one or more parts will eventually break, leak or require an expensive upgrade. I recently spent £400 on two new tires – about £150 more than I expected.
With interest rates continuing to rise, it has become more expensive to buy or rent a car and there is no sign of interest rates suddenly dropping, while inflation remains a threat. Moreover, the pleasure of buying a car – it doesn’t have to be brand new – wears off after a while, even though paying for it is a process that usually takes years.
“Given how quickly prices are rising, it’s important that motorists take the time to reduce car-related costs where they can,” says Ken Carter, head of insurance services at Personal Finance. Moneymap.com.
“With the cost of fuel rising during the summer, we have seen how keen many drivers are in a successful attempt to save fuel. But while motorists can put spending on small luxuries such as car cleaning, they cannot avoid fixed costs including car tax or parking tickets.” , Add.
Annual car insurance costs are another matter – because they are Can . is reduced.
Carter points out that because Moneymapp reviews the cost of auto insurance at more than 100 insurance companies on behalf of every person who logs on to get an instant quote, Motorists can enjoy savings of up to £319.03 on their annual insurance costs.
“We don’t ask for your mother’s maiden name, leg internal measurements or any other nonsense when you visit money map We just want drivers to get the best possible rate for their car insurance. “It’s that simple,” Carter says.
If only everything related to car ownership was straightforward.
For more financial advice, check out Peter Sharkey’s regular blog, The week in numbers.
#Motorists #save #car #insurance #Moneymappcom