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Buying A New Car

Buying a new car is a fun experience, but there are a few traps for the unwary.

Firstly, what car will suit you? Are you looking for a run-around-town hatchback, a mid-sized saloon for you, the wife and kids, or a powerful roadster. Whatever takes your fancy, you are going to be a popular person whether you buy from a dealer, from the internet, or from a broker.

Secondly, spend a bit of time thinking about the basics. What’s your budget, how will you pay for it (cash, finance, or lease) and how is the market at any given economic cycle?

Okay, set yourself a goal and stick to it. And don’t price yourself on the base model. Car manufacturers are superb marketeers and will blow your budget in a matter of seconds if you let them. Obviously you have an idea about what you want. Get yourself the brochures and price lists (although some manufacturers are coy about this), and do some homework as to what your money will buy. Try to price a model bang in the middle of the range, so that when a dealer tries to play the options game, it also gives you room for manoeurve.

And to help you make the right decision there is almost too much information for you to consult. There are numerous car magazines, thousands of internet reports and cyber-space chat rooms, all giving you the information to make a wise decision.

Currently, with the economic downturn, you will be in the enviable position of being able to make a superb deal as other buyers dry-up. But when you do your homework, try and understand the price points, Even in bad times, rarely does the old boast ‘…we’re virtually giving them away..,’ come true. Everything has a base cost level, so if you want to be a great negotiator, understand where trying to get a great deal turns into needlessly wasting someone’s time.

Remember that car salesmen are trained negotiators. They understand how to pull the serious punters into a deal which will suit their employers. They know all the tricks of making a good deal and this is why you have to have the nerve to play the game back to them. If you don’t think you’re getting a fair deal, then walk away, as there are literally thousands of other fish in the sea.

But if you’re not going down the traditional dealer route, then some killer deals can be got through the internet and through brokers. These sites and people trade cars all day long, and do so with some sophistication. This is where the best deals can be had, but its also where nefarious conmen lurk. Only use sites, or brokers, that you know, or have been referred to.

Also, you won’t be able to ‘kick-the-tyre’s, or maybe not get the finance deals offered via the dealers, who prefer finance to straight cash deals, as they can make money via commissions. Also, a web-site, or broker operation will be hard pushed to give you a proper test drive that dealers can easily arrange. Ideally, a test drive should last a weekend, because you can then be sure that the car you want, is the car you are expecting.

Right, so you have your budget, you’ve decided what you want and where you want to buy it from. It doesn’t end there of course.

What you have to consider, before you part with your cash, is how much your car will depreciate, what will it cost to insure and tax, and how much will it cost to run?

Depreciation is a motor industry dirty word. Once you take your car out of the warm showroom, it depreciates in value like a rocket, with somewhere in the region of 10% to 20% being immediately lost. And over a three year period, a lot of cars lose nearly 50% of their value. Okay, the car is brand spanking new and you will have the pleasure of being the first to give it it’s head, but you will pay for that priviledge.

Insurance costs are another important consideration. Have a look in which insurance group your car belongs and make sure you get a quote based on your personal profile. Different models and makes can vary enormously in insurance company risk assessment terms. Get a quote and see what you’re expected to pay out for your dream motor.

Tax used to be quite simple; now it’s not. Rates range from nothing for the most CO2 efficient car, to £400 a year for the most inefficient CO2 model. Okay, not a massive cost when you’re buying a new car, but one that should be considered nonetheless.

And running costs. Don’t just think about the fuel bit; think about the actual rate per mile, usually in pence, that your car will burn in its day to day life. Cost per mile calculations are easily available for new cars and they should be considered in the cold hard light of day.

Buying a new car is one of life’s treats, just make sure it doesn’t turn out to be an expensive nightmare.