Buying a new car in the recession
Buying a new car in the recession: your guide
Whether we’re going to deal with another recession or we’re on the economic road to recovery, there are always opportunities to save money on big purchases like a new car. As the second-largest thing you’ll likely buy in life after a house, you can shave a few quid off the purchase with some top-quality haggling when using a private seller or an Evans Halshaw car dealer. With a few top tips, you should be able to keep hold of more hard-earned cash to use after you’ve made the big purchase.
It was recently revealed by the Society of Motor Manufacturers and Traders that there were just 183,125 new car registrations in June 2011, representing a 6.2 per cent fall on the June 2010 figures. As the 12th consecutive monthly decline in sales, the industry is lowering its prices and giving better deals to stimulate sales. As such, tip number one is that you should maintain confidence in getting a good deal – car manufacturers and sellers know this transactions situation is the case more than you do.
From here, do plenty of research through car review magazines, such as What Car?, as these will also provide average asking prices for vehicles too. Don’t overlook these as an initial go-to, though also check online showroom prices as well as car auction and sales sites, checking past transaction history for what you want.
With this knowledge, set your budget. Include tax, insurance and petrol costs in your figure and work with this in mind at all times. Also, factor in depreciation when buying a brand new car, because you will likely lose thousands of pounds when you drive it off the forecourt. Some models are known to lose as much as 20 per cent of their value just by pulling onto the road.
Franchised dealers such as Evans Halshaw are the safest bet to buy with. You will get a competitive rate on your chosen make and model as well as a full service history. They will also haggle – just remember the extra benefits that these organisations offer on top of the product itself.
Be cool, calm and collected; don’t spend above the odds for tiny extra features and ensure every requirement from the car is delivered!