|
There are many steps you can take to reduce new car prices. If you want a cheap new car you need to be prepared to do more than just haggle with the dealer as this section of the guide to buying a new car will explain.
Quick links:
HOW TO SECURE THE CHEAPEST NEW CAR PRICES
Finding a cheap new car isn’t straightforward if you walk into a showroom and simply ask the salesman to drop his price. If you want a cheap new car, follow these steps to help you cut new car prices.
- Use internet resources and consider buying online
More than 80% of all first-time new car buyers do their research first online as it is the fastest and easiest way to find out the information you need. Online directories and comparison websites are the best place to start so you can see hundreds of new car prices and specifications of the model you desire at one time.
Savemoneyoncars.co.uk is one of the leading online directories listing the best prices on cheap new cars in the UK.
Unfortunately, only around 10% of car buying actually takes place online though this number is rising. One of the major concerns with buying online is that you can’t test drive the vehicle. However, in the case of buying a new car, this risk is reduced because new cars are all of a similar standard so there is less risk by buying ‘sight unseen’. Another option is to head to your local dealership and take out the same make and model for a test drive and then complete your purchase online. This will allow you to capitalise on online discounts and reduced prices, while still giving you the peace of mind that only a test drive can provide.
- Get your car finance ahead of time
Part three of this guide will explain the car financing options available to you, but it’s a good idea to shop for your car finance away from the dealership. Remember that a new car loan or a new car lease is a different product from the car itself – they don’t need to be tied together.
Once you have decided on the right method of car finance for you, use a website such as contracthireandleasing.com to discover the cheapest leasing deals available, or a comparison website to compare new car loan rates. Establish car financing before you buy a vehicle and don’t let the dealer know you intend to find financing elsewhere until price negotiations are complete.
If you have pre-approval for a loan you effectively become a cash buyer to the dealer. By contrast, if you rely on the dealer’s finance department you leave yourself open to poor rates of interest and hidden fees. Though there are certainly some dealers that will take an honest approach to your financing, some may add a percentage point to the lender’s rate as their fee for sorting out the finance for you. Why pay this when you can simply organise your finance separately?
- Learn how to deal with the dealers
Though there are huge savings to be made online there is no substitute for taking the car you plan to buy for a test drive. You should always ask for a test drive so you can find out about the car’s comfort, handling and safety. Also remember to take a test drive before you begin any negotiations over price.
When talking to a salesperson, just remember that you are in charge of the process. Their aim is to get you to buy the vehicle there and then – most salesmen assume that if you walk away from the dealership you won’t come back. As a result, they can’t be blamed for their persistence. Their target is to look for eager, uneducated buyers and to secure a sale at the highest possible price so they earn more commission. Your goal should be to educate yourself ahead of time and to secure the cheapest price.
- Do you need an extended warranty?
A manufacturer’s warranty comes will all new cars and provides the services listed with the warranty free of charge for a limited period of time. Most manufacturers’ warranties will last for two-three years but it is possible, in most cases, to take out an extended warranty.
Think about if you really need an extended warranty, however. If you are likely to trade the car in for a new model every two-three years then chances are that you don’t need one. Also examine your insurance policy to see if many of the aspects of an extended warranty would be covered if you had to make a claim on your insurance.
It’s a good idea to obtain several warranties before you buy to familiarise yourself with the language used and what’s covered. If you decide to take out an extended warranty make sure all major systems are covered; choose a warranty that will pay repair deals directly; and beware of deductibles.
- Look for incentives and the right time to buy
Manufacturers offer special deals to dealers at certain times of the year when they are struggling to move excessive stock. This particularly applies towards the end of the model year – so look in the month before new registrations are introduced for cheap new cars.
Also look around for rebates and special offers – rebates are discounts for new car buyers on slow-moving inventory. Your dealer might not inform you of the rebate if they plan to add it to their profit so make sure you do your research and see what’s available. Additionally, many dealers will be willing to cover your insurance, tax or fuel costs for a set period which can offer substantial savings.
In the next section we’ll examine the car finance options available.
Move on to part three of the guide to buying a new car…
|
