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Though preparation and good research is the key to grabbing a competitive deal for a new car, it can all go wrong when the buying process begins unless you continue to act vigilant. This section of the car buying tips guide aims to make buying a new car easy.
WHEN TO BUY A NEW CAR
If you’re flexible over the time to buy a new car it will work in your favour – the more desperation you show to a dealer, the more likely you are to be stung by a poor deal.
December is considered one of the best times to buy a new car, simply because the majority of us are spending our cash on Christmas presents which leaves dealers devoid of customers. Many dealers and salesmen also have end of year targets to reach and so they might be willing to drop their price to secure your business.
Another good time to target car dealers are the months preceding the introduction of new car registrations. That is because most dealers will take on new stock as the new models arrive and so they will be keen to clear space. There are also many factory-to-dealer incentives which can reach thousands of pounds – it is worth haggling over these incentives to ensure you get a cut of the best deals.
WHERE TO BUY A NEW CAR
As with the majority of consumer products, buying a new car online is invariably cheaper than buying directly from a dealership. Shop around on online new car buying websites, especially those that compare a range of makes and models under one banner. By the nature of having fewer overheads and no commission to pay to salesmen, online car buying websites can offer extensive reductions compared to buying in person. Of course, if you think you can do better there is nothing to stop you printing off the quotes you receive online and taking them to a dealership to see if they can beat the price you have quoted.
Many online dealers will offer special incentives such as bundling in insurance with the price of the vehicle and you can often have the car delivered to your door. Choice is also a key factor as you take your pick on a range of makes, models and specifications rather than just taking what the dealership has in stock.
The biggest concern most people have with buying a new car online is that you are effectively buying a vehicle ‘sight unseen’. However, this risk is reduced greatly when buying a new car as opposed to buying a used car as there shouldn’t be a large variation between what you receive and what is available at the local dealership. There’s nothing to stop you from heading to a local dealer and taking one of their vehicles for a test drive while you consider if the car you are buying online is right for you.
Savemoneyoncars.co.uk is one of the best places to start comparing prices. It has directories with deals listed from both online dealers and brokers on the majority of UK car makes and models.
SHOP AROUND TO SECURE THE BEST DEALS
Though you should always shop around and pick up quotes from several online car directories, your shopping around shouldn’t end there. Apply the same philosophy to car finance quotes as the dealer is not the only one who can finance your new car. Shop around for good deals on loans too.
BEWARE THE TRICKS OF THE TRADE
Many car dealerships and brokers will be honest and up front with their customers, especially online dealers who have less to gain from ‘tricks of the trade’. However, you should still be vigilant so here are some tips to help you avoid being stung:
- Always read the contract – If you’re buying a new car online this is particularly advantageous. Print off a copy of the contract and its terms and conditions, and read it thoroughly before you sign anything. In a dealership you might feel pressured to sign before you’ve had a chance to thoroughly understand what’s in front of you. By shopping online you avoid this pressure.
- Beware of deceptive advertising – It’s easy to be deceived by a strong advertising slogan on any product. However, look closely to discover what the advertisement really says. Is there an asterisk at the end of a special offer? What stipulations apply?
- Think about how the dealer can profit – A dealer can add to their profit in many ways such as by hiking the retail price; offering less than the market value for your trade-in; increasing the rate of your car finance deal; offering unnecessary extras. Be aware of all of these factors going in.
- Payment protection insurance and gap insurance – Both payment protection and gap insurance can be very useful to cover you in worst case scenarios. However, that doesn’t mean that the dealer will necessarily offer you the best deal. Remember you can shop around for payment protection and gap insurance just as you would for a regular car insurance policy. There’s no point in paying more than you have to for the same level of coverage.
When is the best time to buy a new car? Read part three to find out.
Move on to part three of the car buying tips guide…
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