Easy steps to getting a great deal on a new car

Tuesday, 13 April 2010

Despite the recession having officially ended, UK drivers are still facing a huge number of financial pressures.

Petrol prices have reached record highs this month and government tax increases mean an extra one pence per litre will be added again in October of this year.

In addition, the government's scrappage scheme has come to a close. Launched in May last year, the programme enabled 400,000 drivers with cars which were at least ten years old to scrap their vehicle and receive £2,000 or more off a new model.

The initiative was so successful that 72 per cent of drivers wanted it to continue, according to a survey by Carmony.co.uk. But although the scrappage scheme has ended, there are still ways that motorists can ensure they are getting the best deal on their new car.

For people who aren't auto buffs car showrooms can be intimidating places and, despite what many adverts would have you believe, the staff are there to make a sale. This is why it is essential to do your research before you step foot out of your front door.

In the same survey, it was found that around 75 per cent of people admit to feeling out of their depth when purchasing a vehicle and have little or no confidence about their decision.

To combat this there are a number of key issues which people should keep in mind when buying a car. These include what the car will be used for, any key features that you require and how much you are willing to spend.

By writing these down and keeping them at the forefront of your mind you're less likely to be taken in by sales patter and purchase added extras that you just don't need.

Logic dictates that a used car will be cheaper than a new model, however the value for money advantages of purchasing a second hand vehicle stretch beyond this.

The second that a new vehicle is driven out of the showroom it begins to lose value. It's possible that in the first year of purchase the value of a car could depreciate by 40 per cent. Over a three year period this may increase even further to 60 per cent.

For this reason it is often better value for money to purchase a car which is a couple of years old, rather than brand new. Vehicles which are five years old or over may offer even better value if they are in good condition.

The consumer group Which? provides a depreciation calculator on its website which allows buyers to work out how much money will be lost on certain models.

UK consumers are already used to searching online for deals on DVDs, clothing and even holidays. Yet many are still reluctant to buy a car online.

However, there are some statistics which could change their minds.

Online car dealers Autoquake estimated that their customers saved almost £10 million in 2009 by shopping online rather than through a dealership.

This is backed up by independent research from Which? Car. The organisation looked for 14 models of car online and offline and found that 12 were cheaper on the internet. Of these, five models were more than £5,000 cheaper than their list price.

Drivers can also get cheap car insurance by buying on the internet.

Even though the scrappage scheme may be over, a number of car manufacturers are keen to latch on to the concept.

Toyota, Vauxhall and Peugeot are all running swappage schemes, which allow drivers to trade in their older vehicles for money off newer models. The different manufacturers have all applied slightly different criteria to the scheme, however motorists could still save over £3,000.

Remember, the purchasing price of a vehicle isn't the only factor to consider when you're looking for a good deal. Bear in mind that in the coming years the government is likely to create incentives for those who drive greener cars.

You should also think about how many miles to the gallon the vehicle does, how much it will cost to tax and how much it is likely to cost in car insurance premiums, to ensure that a cheap car doesn't end up costing you in the years to come.

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