Buying a new car can be an expensive business. Your mission is to get as much car for as little cash as possible.
Thankfully, there are many ways you can save, meaning you can drive home in a shiny new car for less.
Follow these tips to learn the tricks of the trade – and help you save money on your next car. Good luck!
Downsize what you’re buying
The best way to save money is to ensure the car you want is also the car you need. Is a Mercedes E-Class really necessary, or could you get just as much enjoyment, comfort and convenience from the smaller C-Class? Is a Volkswagen Golf a must-have, or could you live with a Polo and save a mint?
Smaller cars don’t only have more modest price tags. They also tend to be lighter and use more efficient engines, so you’ll spend fewer pounds at the pumps. If that doesn’t convince you, just think how much easier it’ll be to park if you live in town (or manoeuvre around those country lanes if you don’t).
You won’t necessarily have to forgo luxuries either. A modern Polo can come with pretty much all the toys the big E-Class offers – just tick the right boxes on the order form. Think long and hard about exactly why you want that bigger, more expensive car.
Buy an outgoing model
Look closely at the cars you are considering. Cars at different phases in their life cycles will be subject to different deals.
Could you save money by buying a car that’s near the end of its production life? Absolutely, because dealers will offer the biggest discounts on a model that is set to be replaced, or even just updated. Keep an eye on what cars are due out and when.
Consider a pre-registered car
Another way that car dealers manage to hit sales targets is to buy unsold stock themselves, then register the cars in the dealer’s name. An interested buyer would then effectively become the second owner, which could impact slightly on the future resale price.
You’ll also lose a small portion of your warranty, as the clock starts ticking on the manufacturer’s guarantee the moment the car is registered.
However, if you’re prepared to stomach these minor inconveniences, you could save thousands on the list price of what is technically a used car, but effectively still brand-new – and with just a few miles on the clock.
Don’t be too picky
If you’re hoping to bag a bargain, it’s worth relaxing any wish-list you have about your dream car’s final specification. A pre-registered car, for example, is one you’ll be buying off the shelf, and will therefore already be specified with options by the dealer. Many franchises have car parks full of unregistered stock, which they’ll be keen to shift.
So while you may have wanted gold metallic paint and a sunroof, would you turn down a blue version without the skylight? You could save serious money – and buying an existing car means you drive away sooner, too.
Haggle over extras
You can also use the absence of equipment as a great haggling point. If it doesn’t have cruise control, could that be a deal-breaker? As far as your salesman is concerned, it should be. Get them to lop money off at the last hurdle, to get the sale over the line.
Similarly, you can barter for service and care packages, as well as dealer-fit extras. A set of floor mats, a boot liner or a European car kit are actually incredibly useful, and their cost can otherwise really add up.
So, ask the dealer to throw a few of these accessories in with the car. It’s an easy concession for them to make, if they want to seal the deal. And it leaves you feeling slightly smug about your negotiation skills.
Buy at the end of the month
All dealers have sales targets. They’re usually incentivised to sell a certain number of cars each month, and those deadlines tend to come at month-end.
If you’re prepared to time your new-car shopping until a day or two beforehand, staff could be more open to negotiating a discount, in order to get that vital last-minute sale.
Shop around
Don’t assume that all franchised dealers will price their new cars exactly the same. Sometimes it’s worth travelling beyond your local area for a better deal.
For instance, larger, out-of-town forecourts are likely to have a more stock floating around, which makes it easier to save money with a bargain.
Use online car brokers
If you really can’t stand the thought of haggling, let someone else do it for you. Online car brokers are meant to be experts in negotiating on your behalf.
In reality, it’s the promise of attracting lots of new customers to dealers that enables the broker to get rock-bottom rates. But both you and the broker can benefit.
Research the best finance deals
PCP, hire purchase, leasing – the range of car finance options can seem a bit daunting. If you’re not buying your car the old-fashioned way (i.e. outright), it’s a realm of unknowns but potential savings. Pay attention to interest rates. Look at deposit contributions. Is a certain marque offering a good deal on a scrappage scheme?
Play your cards close to your chest and keep your budget to yourself. Give the salesman a ballpark figure and make them work for a rock-bottom price.
Franchised dealers are likely to offer the lowest PCP rates – many even offer zero percent deals – as the credit is usually supplied by the finance arm of the car manufacturer.
Independent dealers outsource their credit contracts to banks and supermarkets, whose rates tend to be higher. In both cases, the bigger your deposit, and the better your credit rating, the more competitive the finance rate will be.
Don’t forget to compare the PCP cost with a simple bank loan, too. While the rates may be higher, the car is yours from the outset, with no restrictions on mileage or wear and tear to worry about.
Haggle on your trade-in
Sentiment is a great weapon in a car buyer’s arsenal if you are trading a car in. “I can’t let it go for that”. “It’s worth more to me”. Both expressions that could persuade the dealer to give you more for yours, or make you pay less for theirs. Research your car’s value, then push for more.
You could also consider selling your car privately first, as that’s likely to get you the best price. You can then use the extra cash for the deposit on your new car.
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