Choosing between new or second hand cars?

New or second hand cars

Buying a new or used car is a straightforward affair, but like any other scenario involving money a bit of savvy is required to make some real savings. By capitalising on existing deals or buying during certain times of the year you can save a lot of money.

Buying a brand new car

There is intense competition among car manufacturers as they try to outdo each other with new models. This fight for market share is good news if you are planning to buy a new car.

It is traditional for manufacturers to introduce new and revised models towards the end of the year, many of which feature more attractive specifications. Keep an eye on the models being replaced and when this is taking place. You could snap up a serious bargain as dealers are normally keen to get rid of old stock to make space for the new models.

Buying a nearly new car

The best bargains are usually available around the time of the new licence plates. Dealers rely on the latest registration plates to attract customers. These come out in March and September each year, so this is usually a good time to get your hands on a relatively new car at a bargain price.

Because supply exceeds demand, it is mostly a buyers' market. So do shop around and do not be afraid to haggle hard for both your desired vehicle and any available car finance deals.

Buying a second hand car that has not been in use for long can deliver significant savings as new cars lose their value quickly in the early days while at the same time allowing you to have a vehicle that is almost as good as new.

It is often possible to net a bargain that is around a year old with approximately 10,000 miles on the clock and the balance of the manufacturer's warranty intact. This type of deal is common at some car dealers and at larger car supermarkets.

Choice

Finding a relatively new used car need not be a problem as the car market is overrun with vehicles. Most dealers barely know what to do with all the cars they are offered, while the auction halls and classified ads are jam-packed with opportunities worth exploring.

Do check that any outstanding finance on a second hand car has been paid off otherwise you could end up paying for the old financing deal because you are now the legal owner as well as the market price for the car.

With many finance deals, such as hire purchase and personal contract purchase, the lender remains the owner until the debt is paid up completely. You can use online resources such as HPI Checks to see if there is any outstanding finance on your chosen motor.

Getting the best deal possible

Research and preparedness are key to getting the best deal. Find out as much as you can about the car and get quotes from as many people as possible, including dealers and supermarkets. You can use lower quotes as leverage to secure a better deal.

However, price should not be the overriding factor: find out exactly what each car dealer offers in terms of warranty, finance and specifications as they could deliver savings in the long term.

Do check how much you need to deposit, how long the repayment period of any car finance deal is and the rate of interest the loan will attract. If part exchanging your old vehicle, make sure you are getting the best deal possible.

Collecting a new car

A PDI - Pre-delivery Inspection document – is supposed to accompany delivery of a new car, and in some cases, a used vehicle. Make sure you are supplied with one when receiving or picking up your car as it should reveal any faults with the vehicle.