Take a test drive before you buy
Buying a brand new car has its attractions, not least because you know the car’s history and have a greater degree of financial protection should anything go wrong. But the minute you drive it off the dealer’s forecourt, your shiny new car will have depreciated in value by thousands of pounds.
How much ?
Like any major financial decision, the decision to buy a brand new vehicle needs careful consideration. The price on the windscreen is only part of the story; what about road tax, insurance, fuel consumption and maintenance ? Depreciation’s at its peak on new cars and doesn’t really level out until the car’s three year’s old so a mistake on the make, size, handling or efficiency could turn out to be an expensive one. It's worth checking your motor insurance policy as not every company offers 'new for old' cover on cars less than two years old where you are the first registered keeper. Thorough test driving a new car is really important along with ensuring you can get passengers, luggage and sports gear in and out easily, and the car fits your lifestyle as well as your pocket.
Discounts
Dealers are sometimes willing to offer discounts in February and August to make room for newly registered cars, but a car bought at the end of August will probably be worth between £250- £750 less at resale than one bought in September so measure that against any discount offered. Buying at the end of March and September has been known to pay off as dealers will be anxious to meet their sales targets and their bonuses will offset any discount on profits.
Haggle
Whenever you buy, haggle but be realistic. Shop around and see what other dealers are offering, and be clear about what you want - compare any discount against the price offered for your old car. Dealers work out a ‘cost to change’ figure based on their best price for your old car subtracted from the best price for the new car.
Even a new car’s electrics and bodywork should be checked, as should the manual and service book, the V5C logbook, tax disc, spare wheel and tools. Absurdly obvious but easily forgotten in the eagerness to drive off in your new car.
If it goes wrong
If you are unfortunate enough to have something go wrong with your new car, tell the dealer immediately. Don’t be aggressive , keep all letters, emails and notes of phone conversations and never refuse to pay finance during a dispute – your car and other assets on which the loan’s secured could be repossessed. New car buyers are protected by law to far greater degree than anyone buying a used car and there is a range of organisations able to offer legal advice.
One last thing.......
look ahead to when you might want to sell the car and remember lime green bodywork isn’t everyone’s favourite.