When it comes to purchasing a car, it’s an expensive cost that you want to ensure you’re making the correct decision. Whether you buy the car outright or you try buying it on finance, you should consider a number of factors before making the purchase.
With that being said, here are some tips to make smart financial decisions when purchasing your car in 2025
Set a budget
Before you agree to any car purchase, you first want to set yourself a budget. How much are you looking to spend on a car? Perhaps you’ve got savings available to buy the car outright? For others, it might be that you have so much for a down payment but not enough to buy it fully so a loan might be needed.
Regardless of how you buy it, you want a budget so that you’re not spending more than you can afford. Not only that but you don’t want to spend too much on the purchase that you forget about the cost of running it and insuring it on the road. These are all add-ons to the monthly payments you’ll be making if you lease it.
Save for a down payment
Saving for a down payment is a good way of shaving a chunk off the total amount you’ll pay. Therefore, it’s a good idea to look at what down payment you’ll need to buy the car or vehicle you’ve been looking at.
The more down payment you have, the less it’s going to cost you when it comes to financing the car. It’s always better to put down more of a down payment where you can.
Compare offers
Comparing offers is a good way of seeing what else is out there and whether you could potentially get a better deal.
Look at what car providers are out there and which car lenders are going to be the best for your budget and financial needs. Some will be more generous with their offerings, while others might not be so giving.
Get pre-approved for a loan
It’s always good to get pre-approved on a loan before you go shopping for a car. That way, it’ll make the exchange of money so much easier.
With that being said, you also want to be mindful of the leasing agreement where you finance or lease your car because some people prior have been missold and are now needing to make PCP car finance claims as a result.
Negotiate on the price
Finally, be ready to negotiate on a price. Whether you’re good at negotiating or not, now is the time to use those skills or work on them, in order to get the right price. Not every car that’s advertised is going to be worth what it’s being sold. Just like a hose, it’s worth negotiating on it to get a better deal.
When shopping for a new car, use these tips to make smart financial decisions on your next purchase.