The economy may be stalling and consumer confidence plummeting but it appears that new car sales are on the increase. Figures released by the Finance and Leasing Association (FLA) have shown that October saw a six per cent rise in the sale of new cars compared with the same period in 2010 and a 10 per cent increase, over the last three months, in new cars bought using car finance.
However, buying a car, whether new or used, can be a daunting experience, especially if you have a pushy salesman following your every move. So coming up are 5 top tips to follow when buying a new car.
1. Do your homework
If you turn up to a car showroom with an open mind there is a good chance that you will walk away having bought the car that the dealer wanted you to buy and not necessarily the car that you wanted to buy. So do your homework, have in mind a car that you would ideally like and then look around to see how it’s price compares with other cars in the same bracket. You should also compare dealers to see how their prices measure up against each other and factor in any extras they may throw in as part of the deal.
2. Name your price
You should also be set in your mind about how much you are prepared to pay and be prepared to walk away if the dealer won’t budge; there is always room for manoeuvre in the price. Another good pricing tip is to find out the invoice price of the car you are after and try to get the dealer to agree to a price as close to this as possible…whilst bearing in mind that the dealer has to make some money on the sale!
3. Buy at the right time
Buying a brand new car at the right time can save you thousands, especially if you buy a pre-registered vehicle or don’t mind having an older-shaped model. Many dealerships pre-register their cars and so if you are looking to buy a car just as the new registrations are about to be released then buying a pre-registered vehicle can ensure some substantial savings.
Similarly, if a manufacturer is about to release a new-shaped model then you can save money by buying a brand new, older-shaped model as dealerships are normally eager to get rid of them.
4. Get the right price for your current car
If you have a car to sell then you will generally make more money by selling privately than you will be selling it to a dealer as part of a part-exchange deal. However, selling a car can be a major hassle and part-exchanging your vehicle is a much easier option. If you do choose this option make sure that you get the best price that you possibly can.
5. Shop around for finance and extras
If you are looking to take out a loan to buy your new car then shop around for the best deal and don’t sign up for the first car finance deal that the dealer offers you. Find how much the monthly repayments are, how long the repayment period is, how much interest you will be paying in total and how flexible the plan is. Once you are armed with this information then compare it to other car finance and personal loan deals.
In addition, ask your dealer what extras they are prepared to throw in with the vehicle. This can be anything from a tank of petrol to a year’s free insurance but, either way, anything you are getting for free will be worth it!