Should I Finance My First Car?

Before jumping ahead to buy your first car, you may have been thinking about finance, the many benefits and the unfortunate downsides to it, for that matter. But it's impossible to make an instant decision about whether you think car finance is right for you or not, so take your time and take note of the advice below.

What Car Are You After?

As a new driver, you may feel more comfortable getting around in a small city runabout as opposed to a huge SUV, which is understandable, but you need to think about exactly what type of motor you're in the market for. That doesn't necessarily mean that you must settle for the cheapest and smallest car thrown in your direction, but rather that you should take the time to think about what is best for you, while separating your 'wants' from your 'needs' at the same time – there's a difference!

Think of How Long You Plan on Keeping the Car

The period of which you wish to keep your first car, believe it or not, has a lot to do with whether you should go for car finance. Essentially, the longer you plan to keep hold of the same car, the more it makes sense to apply for a flexible finance deal to cover the payments in as many, low-cost instalments as possible. While on the other hand, if you only hope to stick with the car for a year or below, you may be better off paying the full amount instead – usually by a loan if you haven't already got the money saved. Either way, thinking for the future is a great way to know whether you’d be making a mistake when applying for car finance or if there are any better options out there for you.

Consider Your Maximum Budget

Again, thinking more about the future rather than how your bank account is looking currently is very important when considering paying for your car on finance. You need to make sure you are going to be able to cover every instalment for the entire finance term, and if not, then you should opt for a loan or make the full payment instead. There is no reason for you to get yourself into debt! Think wisely as this is your first motor and how well you manage the payments for it will determine your eligibility for finance on a car in the future.