Car insurance - Tips & Advice - Buying & Selling cars

When you’re in the market for buying a new car, there are three questions to bear in mind before you start narrowing your search down to specifics: what can you afford, what do you need, and what do you want? You’ll probably find that budget and car size are your main considerations, but personalising your car by choosing your favourite colour bodywork or adding a state of the art stereo system, for example, can make driving more pleasurable too. Here’s how to assess the basics so you tick all the boxes and end up with your perfect car…

What can you afford?

You might have managed to save a sum of money to spend on your new car, or you might be planning to finance the purchase with a loan. To assess how much you can afford to borrow, you can use Direct Line’s loan calculator online – simply key in the amount you want to pay back each month and the optimum loan amount with be worked out for you. Or if you have your eye on a particular car already, you can key in its value and check if the monthly payment are within your budget for that amount. Direct Line loans range from £2,000 to £25,000 over two to seven years (depending on loan amount) with a typical APR of 8.1%. If you need a speedy reply – perhaps you have your heart set on a car and are worried it will be sold – you can apply online and Direct Line aim to get back to you with confirmation of your loan within eight hours. There’s no arrangement fee and a range of payment protection policies to give added peace of mind.

When deciding how much you can afford to spend on your new car, don’t forget to take into account other costs such as car insurance, road tax, fuels costs and breakdown cover. Some new cars offer deals on insurance and breakdown. You can also save on your car insurance when taking out a Direct Line loan. Whether you’re an existing car insurance customer or choose to switch to Direct Line in the next 12 months, you'll get up to 10% off our best car insurance price for the first year and 5% off the following year. You also get free breakdown cover (Rescue level 1) for two years.

What do you need?

In order to sort your budget out, you’ll need to decide what size and type of car  you need. You may be hankering after that two-seater sports car, but it’s not very practical if you have a family of five. When choosing your car, try and think about the practicalities first:

• How often do you drive it – all day, every day or once a week?
• Where do you go – long journeys through the country/abroad or short trips in town?
• Who will you need to transport – just you, your partner or the whole school run?

You may also want to consider:

• Environmental factors – how will you run your car and to what environmental cost?
• Acceleration and power – are speed and power steering required where you drive?
• Fuel economy – can you afford the higher fuel costs that bigger cars often demand?
• Safety and security – how important are air bags, rear seatbelts and security devices?
• Insurance – can you afford the insurance that comes with your chosen car?
• Depreciation – what is the age of, the longevity and warranty on your chosen car?
  

If, for example, safety is your most important consideration, look for models that offer air bags on the front passenger’s side as well as the driver’s. With child safety seats a legal requirement, some models have them built in, which could be worth considering. EuroNCAP (European New Car Assessment Programme) ratings will give you some idea of how much protection (in a crash) different makes and models of cars will provide.

If it’s reliability you’re after, you could think about a diesel car. A diesel engine is simpler, in mechanical terms, than a petrol engine so there’s less to go wrong! They are also more economical on fuel, although they can cost slightly more initially and tend to be slower than their petrol-driven counterparts.

What do you want?

As regards extras, remember that the choosier you are, the longer you might have to wait. If your heart is set on midnight blue colour, leather interiors and a state-of-the-art sound system, you might have to compromise on another aspect of your new car.

You can add a personal touch with the following items, but make sure you check your Direct Line insurance won’t be invalidated by other modifications first:

• Music systems and CD players
• A sun roof or soft top
• Leather seats and luxury dashboards
• Your preferred colour (inside and outside)
• Vintage styles or new models
  

For many people, choosing a car is an emotional issue, but the more homework you’ve done, the more confident you’ll feel about making decisions. Just don’t forget to pay the tax and arrange your Direct Line car insurance before you drive off – check online and get a quote now.