The level of confidence in the new car market is rising each month, according to the latest industry statistics. In May 2012 alone, there was a 7.9 per cent increase in new car registrations, the Society of Motor Manufacturers and Traders’ (SMMT’s) most recent report discovered in June.
More people are taking a trip down to their local dealership and there may be a chance that you’re one of them; as such, here are a few tips that will help you on your way to find the best deal. After all, no-one wants to waste money when buying themselves a new car – especially with depreciation for simply pulling it off the forecourt.
The first thing to do is background research, ensuring that you read car reviews and check average prices in magazines like What Car?. The SMMT publishes a table each month to show the most popular models on the market, which can also help you know what’s worth researching. It’s a list usually dominated by hatchbacks, particularly the Ford Focus and Fiesta – cars that embody the dependable performance of the marque’s extended line-up – and the Vauxhall Corsa. It’s worth doing extra reading about models like this, as there are thousands available across the country.
From here, it’s important to set your budget. It ought to include tax and insurance, as well as the kind of car you need; list, in order of preference, the likes of saloons, hatchbacks, MPVs and estates. Be flexible with features that you would like from your new car, from the size of engine and number of doors to fuel efficiency and other optional extras. Again, these ought to be listed in order of importance.
As mentioned earlier, buying a new car also means you have to deal with depreciation. Many models are known to lose thousands of pounds as soon as they leave the dealership, though these losses can be minimised by choosing certain models that hold a better resale value. For instance, luxury models at the top of a manufacturer’s range can lose thousands immediately, though mid-range family saloons tend to only lose £1,000 or £2,000 in initial depreciation.
Most new cars tend to be offered by franchised dealers that specialise in certain manufacturers, and while competition and economic pressures are lowering car prices, franchised dealerships will still haggle. Many people assume that local dealers will accept less, though this simply certainly isn’t the case – you just have to know how to strike a good bargain, so make sure you’re clued up before you go. Don’t go for lower prices alone, though; companies are often more willing to throw in optional extras.