6 Advantages of Buying a Used Car

How much of your income should you spend on a new car?

As a general rule, you shouldn’t be spending more than 10-15% of your take-home pay on a new car budget, and the total expenses of your car shouldn’t be more than 20% of your take-home pay.

You can use a salary calculator to establish your take-home pay.

Factors to consider when working out your new car budget

There are a number of factors which will impact the budget you’ll have to spend on a new car.

Fuel

The MPG (miles per gallon) of a car is worth evaluating – particularly if you’re going to be using it for long journeys. Consider whether a diesel or petrol engine is best for you. Alternatively, if you’re going electric, note how long the car takes to charge up and what its total range is.

Road tax and insurance

The road tax and insurance of a vehicle varies significantly between different makes and models.

Car insurance is a legal requirement, and likely to be your biggest running expense – particularly if you’re a young driver. The road tax of your car can also be a sizeable outlay.

Maintenance and service fees

Servicing and maintenance of a car are a vital way to keep the vehicle in proper working order. But they can also be expensive, especially if unexpected accidents occur.

There are a range of different resources you can check to ascertain the reliability of a car, including Auto Express magazine’s 2020 Driver Power survey and the Which? car survey.

Make and model

We all love that new car smell. But can you afford a brand-new make and model given the depreciation that will automatically occur when you drive off the forecourt?

Alternatively, if you’re part-exchanging your vehicle for another, how much value has it held? How well does the new vehicle you’re eyeing up hold its value?

How to establish a new car budget with finance

Car finance is a great way of funding the purchase of a new or ‘new to you’ vehicle. With car finance, you break down the cost of the vehicle into affordable monthly repayments, plus interest.

There are different car finance agreements available, making it a highly flexible, accessible, and affordable way of purchasing your next set of wheels.

You can use My Car Credit’s car finance calculator to work out your new car budget. We’ll ask you to provide details like the loan amount and repayment term that would best suit you, as well as your credit rating. From there, you’ll receive a no-obligation quote for car finance in mere minutes. This quote will break down your expected monthly payments, as well as the typical rate and total payable. If you’re happy with what you see, you can apply instantly.

The process is all conducted online, and it’s simple and hassle-free. We’ve got the largest panel of lenders out of any broker in the UK, meaning you’ve got the best chance of finding a deal that works for your budget.

Once you’ve kickstarted your application, you’ll then be able to shop around for your next new, nearly new, or used set of wheels. You’ll know exactly how much you’ve got to spend, putting you in the driving seat of your search.

What’s more, we’ve even got used car finance for drivers looking to finance a ‘new to you’ vehicle. Fast and fair, we welcome all circumstances and can help you to get behind the wheel of a safe, secure second-hand car.