With excitement revving up for the release of ‘17’ number plates on 1 March, buying a car is a significant purchase. A new study from American Express® has found that 19% of adults will spend an average of £11,094 buying a brand new or second hand car this year, equating to a bumper £108 billion across the UK as a whole.
In addition, it’s not just the outlay for the purchase to consider as the research reveals that drivers will spend an average of £1,492 per car this year on running costs.
American Express offers the following finance tips when it comes to buying and running a car:
1) Think outside your local area – while popping down to your local car dealership might seem like the easiest option, it is always worth broadening your search further afield to make sure you are paying the best price for your new wheels.
2) Think about the future – Before you start browsing the forecourts think about what you really need from a new car. There’s no point buying a two-seater convertible if you’re thinking about starting a family, so work out what is realistic.
3) Set a budget – While many Brits balance the books before buying a car itself, it’s also important to consider the financial commitment that continues after you’ve driven out of the dealership. Setting a monthly budget for those regular costs such as fuel, road tax and toll payments can help put the brakes on any overspending.
4) Shop around – Whether you’re purchasing insurance or booking a service, make sure you shop around for the best deals and choose the option most suited to your circumstances. For instance, if you will only be occasionally driving, pay as you go insurance might be a better fit, whereas families who have adult children behind the wheel can make savings by taking out multi-car policies.
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