Inside: Time to Change Your Car? 5 Things You Need to Know. Collaborative Post.
Whether you’ve fallen out of love with your dream car, need to cater for more passengers, or it’s simply time to make a change, the whole experience can be daunting. From filing your VC5 paperwork for new ownership to having enough funds to pay for a new car, there are a lot of things to consider throughout the process.
To keep your mind at ease, we’ve rounded up 5 things you need to know for when it’s time to change your car:
A decade long affair
Typically in the UK, the average driver owns their car for at least ten years. But with the soaring advancements in the motoring industry from technology to a change in consumer patterns, could this be about to change?
Modern cars are built to last. They are designed to include everything from the most up to date safety specs to pushing the boundaries with fuel efficiency and of course, enhancing the driver experience. With a substantial warranty attached to most new purchases, that tend to focus more on mileage than time, the incentives to keep your car for longer are more pertinent than ever.
Not only that, but if you do end up in an accident, you can speak to Dennis Hernandez & Associates, and they will look into safety and the case for you.
What is car depreciation?
Car depreciation is the difference between what you originally paid for your car, and how much you will fetch for it today. For most new vehicles, the biggest hit to your car’s value will be during its first year on the road. During that time, your motor will be worth between 65 – 85% of its original value. Fast-forward five years, and your car’s value will drop to somewhere between 30 – 40%.
However, it’s not always as plain cut for all car makes and models. For instance, a Fiat 500 will lose its value faster than a VW Polo. So bear that in mind when looking to sell or buy a new vehicle.
Fortunately, there are a few things you can do to limit the impact of depreciation on your vehicle:
- Keep your mileage down as low as possible by avoiding mile hungry short journeys that soon add up
- Don’t neglect regular servicing in keeping with the manufacturer’s guidelines
- Hold on to all relevant paperwork, such as an up to date service record
- Ensure all repairs are carried out in line with the manufacturer’s recommendations and use official parts where possible
- Give your car a once over before it’s MOT
- Keep your car clean and presentable inside and out
Car finance opens doors
In recent years, car finance has become the most popular way to buy a car in the UK. With several different options to choose from, such as a personal loan or a lease, switching your vehicle up has never been easier.
Unlike a cash purchase, buying a new or secondhand vehicle with car finance allows you to have more choice, more protection and helps you to keep a better handle on your finances. Rather than a large lump sum payout for your dream vehicle, you can pay back your loan in manageable monthly instalments to spread the cost.
While most applications will be successful, there are a few that won’t. If you have ever missed a significant payment on your mortgage, have broken a loan agreement or simply have no or a limited credit history to speak of, you might struggle to get accepted for a standard car finance loan.
That’s where car finance for poor credit comes in. Rather than focusing on traditional criteria, specialist lenders will look at your individual circumstances to determine the likelihood of you making your repayments. However, they will never let you borrow more than you can reasonably afford to pay back.
Research similar makes and models
If you need to sell your current vehicle, then make sure you do your homework first. Although it may be tempting to accept the first part exchange or trade-in offer at the dealership, you could be losing out on hundreds of pounds by jumping the gun too early.
Arming yourself with all the facts before heading down to the dealership or selling your car privately will ensure you get the best price for your vehicle. By using one of the many reputable car search site tool online, you can compare your current make and model to similar vehicles and determine a more accurate value.
What’s more, you will have a better idea of how much you have to put down on your new car from the sale of your current one!
Is it time to consider electric?
Climate change is impacting life as we know it more than ever before. The UN have issued a “red alert” in their most recent report, stating that unless global action is taken, then the whole planet will be facing devastating consequences with no return.
To combat this, the UK government announced it’s “ten point plan for a green industrial revolution” back in late 2020. Out of this, came the renewed climb to rolling out a regimented electric vehicle infrastructure throughout the entire country, and the most poignant factor for the motoring industry: a 2030 ban on the new sales of all petrol and diesel vehicles, and hybrids to be outlawed by 2035.
Whether the idea of buying an EV is on your radar on not, the financial burden of having a traditional combustion engine vehicle in the next decade is going to be significant. Already you can be hit with extra driving taxes if your vehicle is not emission compliant in the well-established Ultra Low Emission Zone (ULEZ) in London and the Clean Air Zones (CAZ) sweeping across the country.
Alongside the range of EV buying incentives such as the Plug-in grant and Scrappage Scheme that are currently available, the new and secondhand EV market has more choice than ever before. From Tesla to Nissan, Jaguar to VW, you can bag yourself a real bargain across the board.
Costs
How much you’ll pay for your car isn’t the only cost associated with it. You’ll have to consider insurance, gas, and even an electric vehicle road tax, if that’s what you’re driving. You’ll need to make sure you can afford these, especially if you’ll be making loan repayments on top of it. And that’s before you even take depreciation into account.
These will all vary depending on which type of car you get, so you’ll need to spend time making sure you can afford them. Compare the overall costs of each vehicle you’re considering to narrow down your options.
While you might be able to pay the upfront fee, can you really afford the ownership costs? Spend time figuring it out to make sure you don’t get one that’s too expensive.
Switching up your vehicle doesn’t have to be daunting. With a range of buying incentives on offer, and a few selling tricks up your sleeve, you’ll find your next dream car in no time.