Buying a brand new car is one of the largest investments you’ll ever have to make so it makes perfect sense to take as much time as you feel you need in order to guard against mistakes. There are however, some aspects of car buying that are the same, irrespective as to whether you’re buying a new model or a pre-owned version.
Buying from new is tempting because you know where the car’s been. That is to say, you can be confident that the car hasn’t been treated badly in the past and you can be safe in the knowledge that your warranty protects you should anything go wrong. But what are the main things to consider when striking the deal in the first place?
What to look for
Before you think about what to buy, consider what the car will be used for. If you are a high mileage driver and need to think about economy, you should carefully consider smaller engine cars or even diesel models.
Do your homework too with regards to potential insurance and tax costs. While that may seem obvious, it’s easy to forget how much they can add to the bill so do some research in order to avoid costly mistakes.
Don’t be afraid to haggle
Don’t be fooled into thinking that haggling is only reserved for second hand vehicles. Remember that a new car sale is big business for any salesperson and they will bend as much as they can rather than see you head out of the exit and towards their competitors.
Even if they cannot shave anything off the asking price they may be persuaded to throw in some optional extras that wouldn’t have been provided as standard. If you get an upgrade on trim, metallic paint or any form of accessory then your efforts would have been worth it.
Alternatively, if you take out finance with the dealer directly, this may give them some room to negotiate a discount.
About that finance
Accepting the dealer’s finance offer may appear to be the simplest option but you need to ensure that this is the most cost effective way forwards. While they may offer you a discount on the purchase price, is this negated by a higher APR than you could find from a loan elsewhere? Look at several loan companies and be sure to check a loan comparison site too.
Another popular finance option is to use a credit card and if you can purchase the car within your current credit card limit then this could be an option worth considering.
Using your credit card to fund your purchase is the most flexible option as you can pay as much or as little as you like every month but it is essential to work out the total interest that you’ll be paying before you make the purchase.
Above all, when you’re buying a new car the message is to do your research both as to the type of vehicle and the way in which you’re going to be paying for it. As long as you’re armed with all the information, you can buy with confidence.