Car Buying tips for New cars
New cars are very exciting. The fresh smell of the leather, getting to know where all the buttons are and your first 3 weeks of not kerbing the wheel. What a joy!..until you remember the depreciation that is.
The average new car will lose 15-25% of its value once you drive it off the lot. Here are a few ways to ensure you don't lose any more money and get the best deal possible.
You might not be able to drive it off immediately: dealers always need some time to prepare the paperwork and take care of any extras you might have requested with your car. In some cases where your car has been fitted with a lot of optional extras it might take much longer before it is available for delivery. This is especially true if your car is made outside the UK. You should always contact the dealer to see when the car will be ready for arrival and then contact them 48 hours prior to the supposed arrival date to reconfirm.
Know your rights when purchasing a car. If you paid via a credit card you should be covered by the [section 75 consumer credit act}(https://www.legislation.gov.uk/ukpga/1974/39/section/75) this allows you to claim back any money you paid for faulty goods. If you paid via a debit card then you might be able to get your money through a chargeback . By law there is more protection when you pay with a credit card so if you are buying high value goods. Then use your credit card. By law (the consumer rights act )when you buy goods, the goods must be of a satisfactory quality and if you buy the goods online you have a 14 day cooling off period in which you can return the goods to the retailer. If the car develops an issue and you have bought it on finance or if the dealer is registered under the financial conduct authority then you may be able to take your case to the financial ombudsman .
Consider getting GAP insurance. Gap insurance used to have a bad name but as time has passed and due to new directive Gap insurance is slowly gaining back the good reputation it should have always had. What Gap insurance essentially does is insure the different between the value of your car at a time of claim and what you paid when you originally bought it. This means if you get into a car accident and your car is written off, your insurer will only offer you the value of your car the day it was written off. Gap insurance on the other hand will reimburse you for the difference between what your insurance pays out and what you paid for your car. Don't be quick to accept your dealers Gap insurance quote. You may be able to find a cheaper one elsewhere.
You need your insurance before you can drive away. You should have known that. It is illegal to operate a motor vehicle on public UK roads without adequate insurance. Doing this could lead to your car being seized by the police and 6 penalty points being added to your license by the DVLA.. Some car dealers will offer you a temporary driveaway insurance cover for a limited amount of time(musally 7 days) or you can simply sort out your own temporary driveaway insurance cover.
Ensure you have all your paperwork before you leave the dealership.You should take a simple checklist with you. This will save you time from having to return to the dealership.
You will need:
- Your sales contract showing that you have paid the right amount of money, your full name and address
- Your logbook or V5c showing you are the right registered keeper of the vehicle.
- Spare tyres and any other relevant spares
- Your keys of course and any spares you need
- Your finance letter and agreement if you have bought your car on finance. Ensure you have signed copies.
Ensure you have warranty on your new car. Some dealers now offer up to 10 years warranty which might save you thousands of pounds down the road. Ensure you have this as well as any applicable terms in your document bundle. When the time comes to renew your warranty, ensure you shop the whole market for the cheapest deal and avoid accepting your dealers offer of an extended warranty without doing some shopping first.
Warranty direct's reliability index will give you an idea of some of the most common problems cars are likely to have. Not all warranties are great so ensure you check the exclusions and any mileage restrictions.
Pay some part of your car with your credit card. Yes, by paying some part of your car with your credit card you will be covered for the full amount with the section 75 of the consumer credit act . You must ensure that the amount you pay is at least £100 and the car is no more than £30,000. If anything goes wrong you can simply contact your credit card provider and they will deal with it accordingly.
Diesel cars might seem like a fuel efficient option but the value only kicks in if you do long distances. If you don't do long distances then the value of buying a diesel over a similarly priced petrol car is limited.
Bargaining could save you thousands of pounds. Don't just walk into the dealership and accept what they offer you because it's a new car. No! Ensure you bargain. If bargaining in person isn't your thing then you can use websites such as carwow who allow you to get offers from dealers for new cars. These offers are essentially 5-15% off the new price sometimes. Quite a saving!
Don't trade in your old car as dealers will usually undervalue them.You can get a far better price by selling them in the private market. You must avoid dealerships like the plague when it comes to trade ins and avoid websites such as webuyanycar. They might offer convenience but you really have to weigh your comfort with the cost.
Car buying tips for Used cars
Used cars offer more immediate value than new cars but buy the wrong one and you might end up paying much more than you expected in costs over the years. Here are a few handy tips to ensure you keep more of your money in your pocket.
Carry out a pre purchase inspection to ensure you are getting the best deal. Some cars will carry issues that you might not be able to tell from just looking at them. Pre-inspection checks not only help you find these issues but also give you an idea of how much you should be paying for a car.
Buying at the right time could save you thousands of pounds. Car dealers have quarterly targets which affect their bonuses.They will want to move these cars before the end of the quarter and hence may more willing to offer better discounts in order to get deals over the line sooner.The end of March, June, September and December are the best months to target.