If you’re in the market for a new car, or you’re buying your first car, it can seem like a minefield, and you may not know where to start.

The guide below has been designed to help you figure out what you need from your next car and how you’re going to fund it. Choosing the right car is really important and many people head straight to the dealer without consider a few essential factors first. Let’s take a look at how to find the perfect car for your circumstances.

Photo, Christian Wiediger.

Your needs and requirements

The first place you should start is what you need from your car. Each car buyer will have different requirements from their chosen vehicle. If you have a big family or need to carry luggage or equipment, then 7 seater cars may be the perfect choice for you.

Or, if you’ve recently passed your driving test and want a car that isn’t going to cost you a fortune, a small city car can be a good option to help keep costs low. It’s worth making a note of any factors that you couldn’t live without which can then help you to find cars that will suit your lifestyle.

Your budget

Once you know what type of car you’re looking for, your budget comes next. Your budget can affect the type of cars you can buy and also how you will fund your next car. If you have savings, we recommend not clearing your saving account to buy a car and keep a little aside if you can.

Running a car can come with unexpected accidents or repairs so it’s best to be prepared. If you’re looking to pay monthly for a car, you can work your budget out by taking a look at your current income, factor in the cost of any bills or payments you need to pay and then see how much you have left over to comfortably pay for a car.

Your buying options

There are a number of ways in which you can pay for your next car, and depending on your budget, you may be suited to one over others. The most cost-effective way to get a car is through cash if you have the money upfront.

However, even second-hand cars can cost thousands of pounds to buy. Hire purchase cars is a form of car finance which allows you to spread the cost of your chosen vehicle into monthly payments over a number of years. You could also research PCP deals too but you may need to have a good credit score before you can get accepted for a car on finance.

Photo, Why Kei.

Your mileage

In the UK, the cost of fuel has been at an all-time high in 2022. More people than ever are searching for cars with good mpg when they’re in the buying a process. If you frequently cover a number of miles each day, it can be worth getting a car with good fuel economy to help keep costs low.

Diesel cars also tend to get more bang for your buck when it comes to mileage. Alternatively, if you don’t use your car that much, there’s no need to spend money on a vehicle with a large litre engine and instead can shop for a hatchback or city car.

Your insurance premium

In the UK, having a valid insurance premium for your vehicle is a legal requirement so it’s important that you choose the agreement that’s right for you. The amount of money you will pay for car insurance can depend on a few factors.

In many cases, your personal information can affect your car insurance rates. For example, if you’re a first-time driver and have had no previous driving experience or if your car will be sued for business purposes. However, the type of car you choose can also determine how much your premium will be.

Cars that cost more to purchase will also see higher insurances prices as they will cost more to replace if it’s written off. It’s worth comparing different insurance costs on different cars before you commit to getting one.

Your fuel preference

Traditionally, drivers only had to decide between petrol and diesel engines. But now, there are more options available and more eco-friendly models are becoming a popular choice. Both electric and hybrid cars are becoming a first choice for many drivers and with the looming petrol/diesel ban 2030, now could be the perfect time to help tackle climate change through your vehicle. It’s worth exploring each fuel type in more detail and comparing how each one could fit into your lifestyle.