Some simple ways to pay less for your next car

Living outside of the city in a fairly small village, owning a car makes our family life much easier. Unless you live in a city with an excellent transport network getting the kids to and from sport or their various clubs without a car would be very difficult. Most of us are very conscious of doing what we can to reduce our carbon footprint and while we do use public transport when we can, having a family car is still essential for us and our current one is very old and could do with being replaced with a more efficient one.

Of course, there is a limit to how much we can afford to spend when it comes to purchasing a vehicle. As I'm currently going through the process of looking for car I thought I share what I'm doing to reduce costs.

My biggest tip is to look at the second-hand market, there are lots of dealers that specialise in second-hand vehicles that have undergone all the recommended checks and many also come with some sort of warranty. 

Securing the best finance

For most people, car finance payments are the biggest monthly expense. As a result, getting the best finance deal is by far the best way to save. The suggestions below will help you to do this:

· Give yourself plenty of time to search for the right deal

· Understand what all of your options are including a PCP, HP, bank loans and other forms of car finance

· Check your credit score and take steps to improve it before you go shopping for a car

· Consider buying the car in the name of the person in the household who has the best credit rating

· Set up a spreadsheet so that you can compare deals, when you do this look at the total amount you will pay including fees, not just the interest rate

· Don´t be afraid to negotiate, even finance companies give discounts, for example, reduce the arrangement fee

· Delay your purchase so you can save up a bigger deposit

· If you can afford the higher monthly payments opt to pay the loan back across a shorter period

· Read the terms and conditions in full and look for any hidden fees

· If there is anything about the deal you are offered that you are not sure about, always ask for clarification

Finding a relatively inexpensive vehicle

The lower the price of the car you choose to buy the less you will need to borrow and the less interest you pay. This sounds obvious I know, but when you go out to buy a car it is extremely easy to get swept up in the excitement. Dealers are incredibly good at tempting potential customers, so it is common for people to end up spending thousands more than is strictly necessary.

These tips will help you to choose a relatively cheap model that meets all of your needs. Then, find one for a good price:

· Sit down and calmly write down what you actually need, mentally going through how your family uses a car day to day will help to ensure you don´t miss anything important

· Identify makes and models that meet your criteria, and that you like the look of

· Go online and read a few reviews to check if it is really for you

· Check the price using a website like Parker

· Use a car finance calculator to work out if you can afford the make and model, you like the most

· Most new cars lose around 40% of their ticket value after just 3 years, so consider buying a car that is a few years old

· If you really want a new car, see if the dealer has a test drive vehicle available, often they are a bit cheaper

· If you are not going to be driving far, consider buying a car with a slightly higher-than-average mileage

· Keep an eye out for cars that are not black, white, or silver, other colours are not as popular so sometimes they are slightly cheaper

The above is not designed to completely cover the subject of keeping the cost of your motoring down. It is more of a checklist that you can use as inspiration and to guide your own research.

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