With the release of new registration plates, September remains the most popular month of the year to buy a new car.
But, if you’re looking now, in October, take a pause.
I’ve been buying and selling vehicles for 35 years and these are the things I’ve learned about how to get the best deals.
Does it need to be new?
There’s nothing wrong with a new car if you can afford it, but make sure you go in with your eyes open. Depreciation is a real consideration. Effectively, because of VAT, the moment you drive off the forecourt, you’ve lost 20 per cent. On a £100,000 Range Rover, that’s £20,000.
I’m a big believer in finding a vehicle that’s 12 to 18 months old. That way it’s still in good condition and still under the manufacturer’s warranty, but you don’t suffer that immediate financial hit.
But I’ve bought plenty of older used cars too. For anyone doing this, stick to reputable dealerships. Auctions are great if you know what you are doing, but buying privately can be risky and you’ve no protection if something goes wrong.
Focus on the right car at the right price for you, rather than worrying about whether it’s got the latest registration plates on.
Do your research
Look up the type of car you want to buy and find out what it’s selling for. Find the best price online and bring screenshots or print outs with you as evidence to help you negotiate.
Check the insurance costs. There’s no point negotiating a great deal on your dream car if the premiums are through the roof.
And, it might sound obvious, but make sure you see the car before you buy it. My wife Nicky once had to tow me home after I bought what I thought was a bargain minibus, only to find out after the deal was done that it had a faulty automatic gearbox.
Have a conversation
If you’re trying to buy a car at the click of a button through a website or app, the chances are you’re paying too much. To get the best deal, you need to have a conversation rather than emailing or texting.
For a dealer, the margins are often quite tight but it’s much easier to negotiate when you speak to someone face-to-face. This is how you find out if there’s a better deal to be had, whether there’s a new model due in, a better colour to be had, or an extra to be chucked in like an extended warranty.
If you’re buying at auction, find the person who drives the cars through the auction. Ask him: how does it drive, what does the clutch feel like, what condition is its interior?
Kick the tyres
Check the Vehicle Identification Number (VIN), usually under the bonnet or in the driver’s side door frame. This tells you everything about the car. Also check the logbook and, if you’re buying privately, make sure it’s registered to the name and address of the seller.
Now time to get your jeans a bit dirty. Look underneath and under the bonnet. If there’s oil on the floor, there’s a problem. Check the seals around the doors, look under the floor mats inside and look out for signs of wear and tear that suggest the car is older than its mileage might lead you to believe.
If you’re not confident, it can be worth taking an experienced mechanic along. It might cost a couple of hundred pounds, but it could save you thousands.
Make sure you test drive it, listening for any whines and groans or noises from the brakes and wheel bearings.
And don’t just go around the block one way – I once ended up buying a car that made a terrible noise when turning right after the owner took me on a test drive only turning left. Don’t forget to try it out in reverse, too, because I once bought an old Peugeot with no reverse gear!
Know how you’ll pay
There are plenty of ways to buy a car on finance: hire purchase (HP), personal contract purchase (PCP), on a lease or with a loan. Be sure to understand the difference between each of them and which best suits your circumstances.
A PCP might allow you to buy a newer car than you could otherwise afford, but be aware that you don’t own anything at the end of the deal unless you make the balloon payment. Check the terms too as there might be limits on how many miles you can drive.
With HP, the monthly payments are usually higher, but you’ll own the car outright at the end and has fewer restrictions.
If you’ve got money in a savings account paying 3 per cent interest but the best finance deal or car loan charges 5 per cent, then using some of your savings could make sense. Always leave enough in savings for an emergency or unexpected expenditure, though.
Remember to decide based on what is best for you and your finances.
The £20 document that could save you thousands
The Hire Purchase Information (HPI) check will cost you about £20 but could save you a small fortune. This is an online report that tells you the vehicle’s entire history, including whether there is any outstanding finance on it and, worst of all, whether it has been stolen and recovered.
This check is worth its weight in gold. The HPI can show whether the car has ever been in a prang or had an insurance claim against it, and can even flag any mileage discrepancies.
To get an HPI check, you’ll need the car registration number, make and model.
You can also do a mileage check using previous Mot’s. You can get this check through the gov.uk website and you can get the HPi check from a reputable company such as RAC or Autotrader.
