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Buying a New Car
 Where to Buy a Car? Apart from buying a house, buying a car is probably the next most significant amount of money you will spend. This makes peace of mind and security very important. Unless you are very familiar and you know a lot about cars or are determined to get the lowest price from the outset, I would suggest you choose the safest route. The majority of people buy new cars through New Car Dealers, also known as franchised dealers, but there are alternatives to these such as car supermarkets, brokers and importers these can all offer very competitive deals. It could save you thousands of pounds by doing your homework first; even if you want to buy from your local dealer if you have done your research it will always help you to get the best deal. Main Dealer This offers you the greatest peace of mind; it is the most convenient and safest place to buy. Choose one that is contracted to one manufacturer. You will be able to test-drive your choice of car, part-exchange your old car, although you may not get the best price for it, but it is convenient, and you can order your exact specification get professional advice and personal service and the best part if anything goes wrong you have the dealer to go back to. However this comes at a price, New Car Dealers are usually the most expensive way to buy a new car. It is always worth haggling as you can usually negotiate a deal unless it's one of the really desirable models - you just need to ask. They also have special deals on selected models so once again just ask if there is anything available. Always choose a dealer that has a respected reputation and who has been trading for a good few years. Car Supermarkets These places are the exact opposite of the franchised car dealerships - no flash showrooms, no test drives and a sales strategy of "stack it high sell it cheap". Many cars are pre-registered, these are new cars that dealers have bought and registered in order to qualify for discounts from the manufacturers. They then sell them on to customers at discounted prices. As depreciation is steepest when the car is first registered, this can be a great way to save money. It is not unknown for a model with 5 miles on the clock to be sold by a dealer at 30% off list price. Be aware that the warranty will be already running and you will also be the second owner. They buy in bulk , they do have brand new cars generally from any brand where there are deals to be had - hence lots of Fords and not many BMW's. Some of these cars have come from UK manufacturers and importers trying to offload surplus stock, others will have come in as 'parallel' imports from Europe. The cars have usually served on the rental market for a short period of time or others with virtually no miles on the clock at all. These are most likely cars that dealers needed to register to meet a sales target, but failed to find a buyer. While delivery is virtually immediate you are limited by choice. . It is worth checking which type of car you are looking at: official UK cars will be worth more at resale time and may carry better warranties. Car Brokers and Car Import Agents This was a popular way to buying a new car and there was a rapid trade in Internet entrepreneurs offering imports. There are two types of imports “Grey and Parallel”. Grey imports are types of imports that usually come from Japan. They have been purchased in the country of origin and do not have a UK spec and usually some modifications have to be carried out to meet with UK legislation. You also have to consider that although they may be cheaper in the first place you will usually get less for it when you try and sell them. They may not have a warranty and parts can be harder to get and more expensive. It is also important to realise that it may cost more to insure it. A parallel import is a car with a UK specification but they are bought in another country. Again you have to take in to consideration that you may be saving money initially, but you will lose these savings when you come to sell the car as it will be worth less than a similar car officially registered in the UK. The recent strength of the Euro has made British prices look like good value, so only the biggest operators remain in business. You will find that it tends to be the expensive cars that have the best savings on most import deals now. This is because the margins are better. Personal face-to-face negotiations are rare, they usually require large deposits, delivery times are long and you have exchange rate fluctuations to consider. Internet-only car sellers are still a tiny proportion of the total market. Do your homework fist before opening your purse. |
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