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by Marsh Finance on May 19, 2025 3:24:30 PM
Choosing the right car is a huge decision. Aside from a house purchase, getting a car is the second biggest purchase you can make. With the plethora of options available to you, it can be very overwhelming. As a car finance expert, Marsh Finance has listed the main things to consider when choosing the right car for you.
Consider Your Budget
Setting a budget is the most important step in the car-buying process. Establishing a budget will narrow your search criteria and form the foundations of your car-buying experience. We recommend you consider all costs associated with the car, not just the sale price (maintenance, insurance, fuel costs).
Determine What Your Needs Are
Alongside budget, this step is essential before you start car browsing. Are you looking for a family car? Are you looking for a car just for commuting to work? Or are you looking for a sporty, fun car? These are just three examples of the numerous questions you must answer to determine the type of car you want. These questions will influence the range you are looking for and the potential engine size
Research Different Models
Research different car makes and models to find the ones that fit your needs and budget. Consider things like safety ratings, fuel efficiency, and reliability. Many customers dream of specific makes, and if you are one of those people, do not settle for anything less than your dream car
New Vs Used Cars
Consider the pros and cons of buying a new or used car. New cars offer the latest technology and a warranty. However, used vehicles may be more affordable, have lower resale depreciation and have lower insurance rates. If you want to be the first to drive your vehicle, you are likely never to go for a used car. Either way, the decision must be made and can affect the overall price. Here at Marsh Finance, we offer finance on used vehicles. If you are interested in applying for finance with us, click here.
Choose Your Preferred Fuel Type
Choosing the best fuel type for a car in the UK can be daunting, with various options available. Petrol, diesel, electric and hybrid cars are the most common fuel types. When choosing, several factors should be considered, including the car’s fuel efficiency, the distance one intends to cover, and the fuel price. Petrol cars are the most common, and their fuel prices are lower compared to diesel. However, diesel cars are more fuel-efficient but have higher emissions, which negatively affect the environment. Hybrid cars are fuel-efficient and have low emissions, while electric cars are environmentally friendly but require charging infrastructure.
Car Ownership Vs Finance
Deciding how you will pay for the car is essential in buying. At Marsh Finance, we offer two types of finance agreements; hire purchase (HP) and personal contract purchase (PCP). If you are interested in learning more about each, click here and visit our homepage.
Look At Every Detail Of Your Car
Now you are at a point where you have chosen your make, the type of agreement you are entering into, the budget, and you are ready to see the car in person. As a car finance provider, Marsh Finance strongly advises visiting the showroom to see your vehicle in person. This allows you to feel the car and sit in it. At this point, you will get a feeling as to whether it is the car for you. During the showroom experience, don’t be afraid to ask questions about the vehicle; has it been in any accidents? Is there any damage? What does the dealer think about the car? These are just some questions you can ask to better understand the vehicle you may be purchasing. As part of this step, we recommend test-driving the car. Before making a decision, test drive the vehicle to get a feel for how it handles and ensure it is comfortable for you. A car could look perfect on the surface, but when you drive it, it just does not feel right. Test driving the car is one of the most significant steps in the car purchasing process, as this is the first time you get to feel the car moving.
Look For Incentives
Check for any incentives or special offers from the dealership or manufacturer that can help reduce the cost of the car. At the point of sale, dealers may offer promotions. This could potentially save you money on the sale price or reduce future maintenance costs.
Conclusion
The car buying process will challenge you, but if done right it will be an enjoyable experience. By employing our tips, your car purchasing journey will be smoother and more manageable whilst ensuring you get a good deal on your dream car.
Are you interested in car finance? Marsh Finance values the journey our customers go on and has taken steps to simplify the journey to create a seamless application and decision process. Marsh Finance’s easy-to-use application form and finance calculator allow you to start your journey quickly – and applying will not impact your credit score. Contact us if you would like to learn more about how we can help your car financing process.
FAQs: Choosing The Right Car Finance Option For You
What is the difference between PCP and HP car finance in the UK?
Personal Contract Purchase (PCP) and Hire Purchase (HP) are two popular car finance options. With PCP, you pay lower monthly instalments and have the option to buy, return, or trade in the car at the end of the term. HP involves higher monthly payments, but you own the car outright once all payments are made. Your choice depends on whether you prefer lower monthly costs with flexibility (PCP) or full ownership at the end (HP).
How do I choose between leasing and buying a car in the UK?
Leasing allows you to drive a new car for a fixed period without owning it, often with lower monthly payments. Buying through finance means you’ll own the car eventually, which can be more cost-effective in the long run. Consider your driving habits, budget, and whether you prefer changing cars frequently or owning a vehicle.
Want to learn more? Check out our guide here.
Is it better to buy a new or used car on finance?
New cars come with the latest features and warranties but depreciate faster. Used cars are more affordable and depreciate less but may have higher maintenance costs. Your decision should factor in budget, desired features, and how long you plan to keep the car.
What factors should I consider when choosing car finance?
Key considerations include your budget, credit score, desired ownership (owning vs. leasing), monthly payment affordability, and the total cost over the finance term. Additionally, assess any mileage restrictions, deposit requirements, and early repayment penalties associated with the finance option. Read more about what to look out for in a finance agreement here.
How does my credit score affect car finance options in the UK?
A higher credit score can qualify you for better interest rates and more favourable terms. Lenders assess your credit history to determine your reliability in repaying the loan. Improving your credit score before applying can enhance your chances of securing a better finance deal.
Can I get car finance with a low credit score in the UK?
Yes, some lenders specialise in offering car finance to individuals with low credit scores. However, these deals may come with higher interest rates. It's essential to compare offers and consider improving your credit score to access more favourable terms.
Learn more on how to pick the right car finance company for you in our guide.
What is a balloon payment in car finance?
A balloon payment is a lump sum due at the end of a PCP agreement if you choose to purchase the car. This payment is agreed upon at the start of the contract and allows for lower monthly payments during the term. Ensure you can afford this final payment if you plan to keep the car.
Find out which car finance option is right for you.
Are there mileage limits with car finance agreements?
Yes, particularly with PCP and leasing agreements, there are often annual mileage limits. Exceeding these limits can result in additional charges. If you drive extensively, consider HP or finance options without mileage restrictions.
What deposit is typically required for car finance in the UK?
Deposits can vary but typically range from 10% to 20% of the car's value. Some lenders offer no-deposit finance deals, but these may come with higher monthly payments. Assess your financial situation to determine the most suitable option.
How long does the car finance approval process take?
Approval times can vary by lender. At Marsh Finance, the online application process is quick, and you can receive a decision promptly. Once approved, funds are typically transferred to the dealer within a few hours.