Saving for a New Car   

A new car is one of the biggest and most difficult financial decisions anyone can make. Firstly of all, you have to decide whether to buy new or second hand.

Then you have to think about what engine size you require, how much space, what size boot, what the road tax might be. And after all that, there are many additional aesthetic decisions to make. Which colour do you prefer? How important is air conditional?

Does it have an iPod docking facility? Of course, before any of these considerations can take place, it is crucial to ensure that you have enough money to make the purchase in the first place.

There are many ways to go about financing the purchase of a new car. Here is a quick look at a few of the most common and the most popular: 

1. Open a good savings account: Planning well in advance will make this enormous expenditure a little easier to bear. Trying to put by a certain amount each month is advisable, as is locking away your savings in a high interest fixed term account until you come to bite the bullet and replace your existing motor.

Savings schemes can come in the form of flexible, online accounts that allow you to switch money between your savings and your current accounts at the click of a few buttons. Alternatively, you could choose to invest your savings in a corporate bond or something similar, in order to benefit from their more competitive interest rates. Reputable banks such as Santander offer a comprehensive range of savings on their website. Whichever savings scheme you choose, planning ahead and taking the time to save up will certainly pay off in the long run. 

2. Get a loan: There are many loans available specifically to help those in the market for a new vehicle. These loan companies understand the importance of being mobile and that a car is an essential part of your daily life, without which you would struggle to make a living at all. Be sure to seek professional advice before choosing between the many different kinds of loan currently available. 

3. Part exchange: One common method of facilitating the purchase of a new car is to trade in your old set of wheels. This could knock a considerable portion off the price of your new transport.