Buying a car is usually a large investment, but there are many ways to bring the costs down. See how much you can save on your next set of wheels by following these three top tips from new and used car dealership Motorparks:
Don’t go for brand-new models
It can be tempting to take the jump and buy a brand-new car. After all, this means that the vehicle you purchase will never have been owned by another driver — it’s yours exclusively.
However, consider these figures before making up your mind:
- A new car has an average list price of around £28,500.
- When it’s a year old and has been driven for 10,000 miles, its price will have fallen to £21,000.
- As a result, the price will have been reduced by £7,500 — over 27 per cent — in just 12 months.
- In comparison, the deprecation rate of the average new car in its second year of existence works out at around £3,750.
Taking these facts and stats into account, it’s wise to choose a car that is a year old as opposed to one that has only just rolled out of the manufacturer’s factory.
Find cars which hold their value
Still have your heart set on buying a new car? Then we suggest that you spend some time studying the deprecation value of vehicles which catch your eye, as certain models will fall in value a lot quicker than others.
This is demonstrated by this What Car? study, which found that a Dacia Duster with 36,000 miles on the clock retained 56.39 per cent of its value while a Jeep Cherokee retained just 19.39 per cent over the same distance covered.
You will be happy you carried out this check when it’s time to sell your car in a few years’ time.
Be tactical with your visit to a dealership
If you’re planning to buy your vehicle from a dealership, remember that these are all businesses which have goals and sales targets to meet.
Many of these are based on quarterly sales. Therefore, pay a visit to them towards the end of March, June, September or December and you there’s a good chance that you’ll be greeted by a salesman who is more willing to negotiate or add fantastic finance packages to a sale.
Bear in mind though that particularly attention-grabbing deals will tend to disappear once targets have been met. As a result, leaving it to the last day of a quarter to drop by a dealership may not be the smartest move but more of a gamble.