Revving Up Your Finances: Car Ownership and Money Saving Tips
Car ownership is a borderline necessity for most people. However, managing personal finances effectively while ensuring your car finance repayments doesn’t become a financial burden can be challenging. At Glenside Finance, we understand the importance of striking a balance between car buying and your financial well-being. In this blog, we’ll share some valuable insights and tips on how to manage your personal finances alongside your Hire Purchase (HP) repayments.
Budgeting for Car Ownership
Before you even step foot into a car dealership, it’s crucial to set a realistic budget. Determine how much you can comfortably allocate towards your car, considering factors like your income, monthly expenses, and savings goals. Our advice at Glenside Finance is to ensure that your car-related expenses, including monthly payments, insurance costs, fuel, tax and maintenance, do not exceed 25% of your monthly income, ideally somewhere between 15% – 25%. The lower the better!
Don’t worry if you are unsure, at Glenside Finance, we can help you explore what repayments might be affordable for you. It is just as important to us as it is to you that you are comfortable with your monthly repayments.
Choosing the Right Car
When it comes to car ownership, it’s easy to get caught up in the allure of a brand new vehicle or larger engine size models. However, the wisest starting point is opting for a car that suits your actual needs and budget. You want to make good financial decision after all! Consider factors such as fuel efficiency, likely tax and insurance costs, maintenance costs, and re-sale value factoring in the mileage you expect to add on over the duration of your HP agreement.
Saving on Insurance
Car insurance is a mandatory expense and a fully comprehensive insurance policy is required for HP finance, but that doesn’t mean you can’t save on it. Shop around for the best insurance deals in advance of your purchase, and consider factors like your driving history and the type of car you want to drive. Additionally, you can reduce your premiums by increasing your deductibles and taking advantage of discounts, such as multi-car or experienced driver course discounts.
Regular car maintenance is essential for keeping your vehicle running smoothly and preventing costly repairs down the road. Follow a maintenance schedule and stick to it. Simple tasks like checking tyre pressure, changing the oil, and replacing air filters can significantly extend your car’s reliability and lifespan and save you money in the long run.
With rising fuel prices in the UK, it’s crucial to maximise your car’s fuel efficiency. Practice fuel-efficient driving habits, such as avoiding excessive idling, maintaining a steady speed on the motorway, and keeping your tyres properly inflated. These small changes can lead to significant savings at the pump. Sporty driving will always you more.
Exploring HP Finance with Glenside
At Glenside Finance, we offer a range of competitive interest rates that are tailored around your application and past credit behaviours. If your credit rating is good, you’ll get a lower rate and probably a larger loan. We focus on good outcomes at Glenside so we’ll work closely with you to ensure you get the best deal that aligns with your financial goals.
Regularly Review Your Finances
Financial circumstances change over time, and the costs of running your car may need to adjust accordingly. Review your budget, insurance policies, maintenance costs regularly to ensure they still align with your financial goals. If necessary, consider refinancing your car loan to take advantage of lower interest rates if over the course of your agreement you have paid all of your repayments on time and your credit score and rating have improved as a result.
Owning a car in the UK doesn’t have to be a financial burden. With careful budgeting, smart car choices, and expert guidance from Glenside Finance, you can enjoy the convenience and freedom of car ownership while keeping your personal finances in check. Start implementing these tips today to rev up your finances and make your dream car a reality.
Remember, at Glenside Finance, we’re here to assist you in making informed financial decisions in order to help you secure the car you need. Explore our website for more insightful articles on car finance and personal finance, or reach out to our team for personalised guidance on your car ownership journey.
The quickest way to get started is by making an application today, click here, and if you prefer to pick up the phone you can contact us on 01942 466 035 and we’ll happily help you.
Check out our other blogs for more expert advice and information on car finance and personal finance topics.