That’s right. There are ways to help you reduce the final bill of your new car, and here is how:
Okay, we’re sorry for having to bring this up, but we need to. Why? Because a lot of people don’t understand the cost of buying a shiny new car off the shiny floor of a sparkling showroom. We touched on it briefly when we said that a car - on average - loses 19% of its value in the first year alone. This figure goes up to around 50% within the first three years. That is average. It could be that you see your car lose more.
That is a huge chunk of change to be losing, especially when you look at it from the other angle and consider that you could be saving that amount if you bought a car that was one or two years old or even an ex-demo car.
2. Know which models hold their own
Don’t worry, researching car depreciation isn’t a long, convoluted and tedious mission because of What Car? Has a depreciation calculator that allows you to see how much a model holds its value. It will also give you a breakdown of how much value it sheds year on year. If you are serious about saving money, this should have a huge impact on your decision-making.
3. Life is all about timing
Okay, so choosing what make and model is massively important to saving money, but there is no point going through all the hassle of researching different cars, and maybe even learning about extra-curricular things like working out your personal loan for debt consolidation if you don’t know the importance of timing. Knowing when to buy could save you a massive chunk of cash.
The reason for this is simple. Dealers have to meet certain quotas and targets if they want to win their bonuses, which makes knowing the target structure can help. Generally, these bonuses are based on quarterly sales. That means the best time to buy a new car is either at the end of March, June, September or December. Basically, they need to sell cars before the end of these months, which means you will have a better chance of bargaining with them and knocking them down on price.
This isn’t the only thing to consider when talking about time, either. Try and avoid new license plate season as much as possible, and consider what type of car you’re buying in what season. If you want to get your hands on a convertible Mercedes-Benz, then buy in the winter, when it is out of season. You would buy your ski gear in the summer to save money, so why not do the same with cars.
4. Know what cheaper really is
Of course, there are a lot of different facets to consider, and that see you sitting at your laptop for hours and hours trying to decipher what your cheapest options are. But don’t worry, because of What Car? Can help you determine what the cheapest cars are, even taking into consideration your preferences.
5. Why not buy pre-reg?
How does a potential 70% of the retail price of your new car sound? Great, huh. Well, this is possible to achieve if you buy a car that is what the industry refers to as pre-reg. Essentially, what this means is the car has technically had one owner already. However, the car hasn’t actually had an owner.
What happens is, the car dealer buys a car and then registers it to their dealership. The reason they do this is to meet their quarterly sales targets, but they do it artificially. Why? Well, those that work in dealerships tend to make more from meeting their targets than they do through the commission of actually selling a car.
This is good news for you because your potential new car will have a record that shows it has already had one new owner, allowing you to snap it up with a hefty discount tag. Woohoo. All the benefits of buying a brand new car, just without that heavy price tag.
** This is a collaborative post