Thinking of buying a new car?

There are many reasons for buying a new car. If you’re replacing an unreliable model you may want to be doubly secure that you won't be left stranded should it break down with one of our breakdown cover options.

Financing your purchase

• The right finance option can make a big difference. A car dealership can be an intimidating place, so it’s important to understand your options before you start negotiating.
• If your car is less than ten years old, many dealerships will take it as part-exchange for a new one.
• Paying with cash is without doubt the cheapest way to buy a new car as you won't have to pay any interest.
• If you don't have the cash upfront, one option is a hire purchase agreement. With this option you pay an initial deposit and then pay off the balance in monthly instalments. The downside of this option is that your loan is effectively secured against the car, so if you fail to keep up the repayments the car can be repossessed.
• Keep in mind that it’s not necessarily in the dealer's interest to get you the best deal as they earn commission from the lender, so be prepared to shop around for a better interest rate.
• A straightforward personal loan, which can be cheaper than car finance from your dealer - especially if you have a good credit history.
• Another option is to take out a personal contract plan. How it works? Take a look below.

Personal contract plan

After paying a deposit and agreeing on annual mileage, you make monthly payments as with hire purchase. Monthly payments will often be lower than hire purchase, but you’ll be charged around 10p for every mile above the annual mileage estimate. Also the car has to be in good working order if you decide to return or upgrade it at any point, otherwise any damage will be charged to you.

Whatever option you choose, a new car is less likely to break down and so upgrading your old one can save you on breakdown and recovery costs. However, no car is dependable and it’s still wise to take out breakdown cover.

To find out how much you can save with Green Flag get an online quote today.