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Car finance ›
How to decide what car to buy
Updated: Thursday, 14 March 2024
Buying a new car is exciting, but it also comes with its fair share of questions: what’s your budget? Do you buy used or brand-new? Should you buy a hybrid or electric car? Will you use car finance?
Once you’ve found the answers to these questions, the type of car you should buy becomes clearer. To help you make an informed decision, we explore the factors to consider before buying a car.
Which types of cars are there?
The most common car types in the UK are:
- City cars
- Superminis
- Compact cars
- Saloons
- Estates
- Coupés
- Cabriolets
- Roadsters
- SUVs
- Crossover SUVs
- People carriers
Each of these types of cars has its pros and cons. Some cars (city cars, superminis, and compact cars) are suited to short trips while other cars, like saloons and estates, are better for longer trips and carrying more passengers.
Explore these vehicles in more detail in our ‘Choosing the right car type‘ guide to get your car-buying journey off to the best start.
Factors to consider when buying a car
Although you might be drawn to a flashier car, it’s best to think practically about why you need a car and how you’re going to use it. You can then find a car which suits your needs.
You should also think about what the future may hold for you. Think about what the future may hold, as your needs may change in a couple of years. For example, if you have kids, you’ll probably need a bigger car that can fit everyone. What your car can do and its features should always be more important than how it looks, and there are many different types of cars to choose from.
To help you make the right choice, here are factors you must consider before deciding which car to buy.
Buying a new car is exciting, but it also comes with its fair share of questions: what’s your budget? Do you buy used or brand-new? Should you buy a hybrid or electric car? Will you use car finance?
Once you’ve found the answers to these questions, the type of car you should buy becomes clearer. To help you make an informed decision, we explore the factors to consider before buying a car.
Which types of cars are there?
The most common car types in the UK are:
- City cars
- Superminis
- Compact cars
- Saloons
- Estates
- Coupés
- Cabriolets
- Roadsters
- SUVs
- Crossover SUVs
- People carriers
Each of these types of cars has its pros and cons. Some cars (city cars, superminis, and compact cars) are suited to short trips while other cars, like saloons and estates, are better for longer trips and carrying more passengers.
Explore these vehicles in more detail in our ‘Choosing the right car type‘ guide to get your car-buying journey off to the best start.
Factors to consider when buying a car
Although you might be drawn to a flashier car, it’s best to think practically about why you need a car and how you’re going to use it. You can then find a car which suits your needs.
You should also think about what the future may hold for you. Think about what the future may hold, as your needs may change in a couple of years. For example, if you have kids, you’ll probably need a bigger car that can fit everyone. What your car can do and its features should always be more important than how it looks, and there are many different types of cars to choose from.
To help you make the right choice, here are factors you must consider before deciding which car to buy.
What's your budget?
The first thing you need to do when planning to buy a car is set a budget. The amount of money you have available will make other decisions, like whether to buy brand-new, nearly new, or used, more straightforward.
If you’re considering paying monthly for your car, e.g. as part of a Conditional Sale (CS) agreement, check out our handy car finance calculator to see what your monthly repayments could look like.
What's your budget?
The first thing you need to do when planning to buy a car is set a budget. The amount of money you have available will make other decisions, like whether to buy brand-new, nearly new, or used, more straightforward.
If you’re considering paying monthly for your car, e.g. as part of a Conditional Sale (CS) agreement, check out our handy car finance calculator to see what your monthly repayments could look like.
Should you buy a new or used car?
Whether you buy a new or used car will primarily come down to your budget, but the decision will affect other factors. New cars can cost much more and tend to depreciate quicker than used cars, so if you have to sell, you may lose out on a chunk of the initial price.
Read ‘Should I buy a new or used car?‘ for more information on the pros and cons of each choice.
Should you buy a new or used car?
Whether you buy a new or used car will primarily come down to your budget, but the decision will affect other factors. New cars can cost much more and tend to depreciate quicker than used cars, so if you have to sell, you may lose out on a chunk of the initial price.
Read ‘Should I buy a new or used car?‘ for more information on the pros and cons of each choice.
Should you buy a hybrid or electric car?
With the government banning the sale of petrol and diesel cars as of 2035, you might have thought about buying a hybrid or electric car.
Over time, however, you may save money due to the cost differences between petrol, diesel, and electricity. With an electric vehicle (EV), there are other benefits, like paying no road tax.
Should you buy a hybrid or electric car?
With the government banning the sale of petrol and diesel cars as of 2035, you might have thought about buying a hybrid or electric car.
Over time, however, you may save money due to the cost differences between petrol, diesel, and electricity. With an electric vehicle (EV), there are other benefits, like paying no road tax.
How will you use the car?
The types of journeys you take will affect the sort of car you need. For example, if you’ll be driving in a town or city, a smaller, more economical car that’s easier to park may be more suitable. If you live in a rural area, you may need the four-wheel-drive capabilities and increased power of an SUV.
How will you use the car?
The types of journeys you take will affect the sort of car you need. For example, if you’ll be driving in a town or city, a smaller, more economical car that’s easier to park may be more suitable. If you live in a rural area, you may need the four-wheel-drive capabilities and increased power of an SUV.
How many seats do you need?
Consider if you’ll regularly carry passengers or not. Most cars have 5 seats, but you might need more if you have a large family or will be carrying extra cargo.
If you don’t carry passengers often, you might decide to get a smaller car which will be more practical through tight urban streets and when parking.
How many seats do you need?
Consider if you’ll regularly carry passengers or not. Most cars have 5 seats, but you might need more if you have a large family or will be carrying extra cargo.
If you don’t carry passengers often, you might decide to get a smaller car which will be more practical through tight urban streets and when parking.
What's your commute like?
If you have a long commute or need to travel often for work, you’ll spend a lot of time in your car. You might want a car with more space inside, or one that is more efficient on motorways if you do a lot of long-distance driving.
What's your commute like?
If you have a long commute or need to travel often for work, you’ll spend a lot of time in your car. You might want a car with more space inside, or one that is more efficient on motorways if you do a lot of long-distance driving.
Do your hobbies affect the type of car you need?
Depending on your hobbies, it may be wise to consider a car that has a lot of boot space or one that enables all the seats to be folded down. For example if you’re a golfer or enjoy fishing you’ll definitely need a bigger boot to accommodate all the kit.
Do your hobbies affect the type of car you need?
Depending on your hobbies, it may be wise to consider a car that has a lot of boot space or one that enables all the seats to be folded down. For example if you’re a golfer or enjoy fishing you’ll definitely need a bigger boot to accommodate all the kit.
What features does the car need?
Brand-new cars will have the latest equipment and safety features, like parking assistance. While these additions may be costly, you should consider what features you want in your next car. This may affect the makes, models, and age of cars you look at.
What features does the car need?
Brand-new cars will have the latest equipment and safety features, like parking assistance. While these additions may be costly, you should consider what features you want in your next car. This may affect the makes, models, and age of cars you look at.
What's the best way to pay for your next car?
Knowing your budget and how you will pay for your next car will affect the types of cars you could buy. It’s important to think about how you’ll pay for it before hand, so let’s walk through some of the ways you could fund the purchase of your next car:
What's the best way to pay for your next car?
Knowing your budget and how you will pay for your next car will affect the types of cars you could buy. It’s important to think about how you’ll pay for it before hand, so let’s walk through some of the ways you could fund the purchase of your next car:
Take out car finance
If you get car finance, you can spread the cost of a new car over a set time (usually between 2-4 years). Different kinds of finance give you different options at the end of your agreement. PCP agreements, for example, let you decide whether you want to keep the car, trade it in, or return it at the end of the agreement.
It’s important to consider all the costs involved in owning a car, not just the finance payment. If you can’t make your monthly car finance payments, the lender may terminate the agreement and repossess the vehicle.
There are lots of different finance types available, so it’s important to understand how car finance works and if it’s right for you. Why not take a look at our guide ‘is car finance worth it?‘ to explore the pros and cons of car finance.
We offer Conditional Sale (CS) car finance. This means you make fixed monthly payments until the finance is paid off. Once you’ve made the final payment, you’ll own the car and there’s no extra fee or payment to own the car at the end of the agreement.
Use our car finance calculator to see what your agreement might look like. Or, if you’re ready, get a quote today. It takes less than 5 minutes and only uses a soft credit check at the point of application.
Representative 30.5% APR.
Take out car finance
If you get car finance, you can spread the cost of a new car over a set time (usually between 2-4 years). Different kinds of finance give you different options at the end of your agreement. PCP agreements, for example, let you decide whether you want to keep the car, trade it in, or return it at the end of the agreement.
It’s important to consider all the costs involved in owning a car, not just the finance payment. If you can’t make your monthly car finance payments, the lender may terminate the agreement and repossess the vehicle.
There are lots of different finance types available, so it’s important to understand how car finance works and if it’s right for you. Why not take a look at our guide ‘is car finance worth it?‘ to explore the pros and cons of car finance.
We offer Conditional Sale (CS) car finance. This means you make fixed monthly payments until the finance is paid off. Once you’ve made the final payment, you’ll own the car and there’s no extra fee or payment to own the car at the end of the agreement.
Use our car finance calculator to see what your agreement might look like. Or, if you’re ready, get a quote today. It takes less than 5 minutes and only uses a soft credit check at the point of application.
Representative 30.5% APR.
Buy the car outright
Buying a car outright means you’d need to pay the lump sum upfront. You’d become the legal owner straight away, and wouldn’t pay any interest or fees as you would with finance or a loan. However, this means you’ll need to have the full amount saved to pay upfront, which can be tricky.
Check out our guide to the best ways to buy a car if you’d like to learn more.
Buy the car outright
Buying a car outright means you’d need to pay the lump sum upfront. You’d become the legal owner straight away, and wouldn’t pay any interest or fees as you would with finance or a loan. However, this means you’ll need to have the full amount saved to pay upfront, which can be tricky.
Check out our guide to the best ways to buy a car if you’d like to learn more.
Use a personal loan
You could take out a loan from a bank or building society to pay for the car. You’d then repay the loan by making monthly payments. You will own the car outright with a personal loan but can pay the balance over a few years.
A personal loan is slightly different from car finance because it provides you with a lump sum of money which you can use as you wish. You could use it to buy a car, get it serviced, and set aside some money for insurance, tax, fuel, and other maintenance costs.
Read our guide comparing car finance and personal loans to find out which is best for you.
Use a personal loan
You could take out a loan from a bank or building society to pay for the car. You’d then repay the loan by making monthly payments. You will own the car outright with a personal loan but can pay the balance over a few years.
A personal loan is slightly different from car finance because it provides you with a lump sum of money which you can use as you wish. You could use it to buy a car, get it serviced, and set aside some money for insurance, tax, fuel, and other maintenance costs.
Read our guide comparing car finance and personal loans to find out which is best for you.
What car should you buy?
The best cars can seamlessly fit in with your life and make it easier. The specific type of car you should buy will vary based on your current and future circumstances, preferences, and budget.
For more advice on buying a vehicle, head over to our blog. There, you’ll find guides on how to test drive a car and what to check when buying a used car.
What car should you buy?
The best cars can seamlessly fit in with your life and make it easier. The specific type of car you should buy will vary based on your current and future circumstances, preferences, and budget.
For more advice on buying a vehicle, head over to our blog. There, you’ll find guides on how to test drive a car and what to check when buying a used car.
For a better road ahead
Moneybarn is a member of the Finance and Leasing Association, the official trade organisation of the motor finance industry. The FLA promotes best practice in the motor finance industry for lending and leasing to consumers and businesses.
Moneybarn is the trading style of Moneybarn No. 1 Limited, a company registered in England and Wales with company number 04496573, and Moneybarn Limited, a company registered in England and Wales with company number 02766324. The registered address for these companies is: Athena House, Bedford Road, Petersfield, Hampshire, GU32 3LJ.
Moneybarn’s VAT registration number is 180 5559 52.
Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)
Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)
