Buying a new car is not the most money-saving and finance-building option to take. The moment you drive your brand-new model off of the showroom, that money will be gone. More than likely, it will be thousands of pounds leaving your bank account. Despite this, the draw of buying a car is hard to fight. You may need to be patient so that you can find the right price and model, but you can still do it. Here is a little bit of advice for buying a new car as cheaply as you possibly can.
New Cars
The first question you need to ask yourself is do you need a car that is fresh from the production line and untouched by anyone else. Do you need to go the BMW dealer in AZ? Statistically, a new car loses almost half of its value in the first couple of years if they don’t lose their value quicker than that. It is a massive loss to take on straight away with such a big purchase.
A car that is only one to two years old is typically a far better investment than a brand new one. You can more than likely get a new car with a model released only a couple of years ago for a huge saving. Another question to ask is if you can purchase an ex-demo car. This will give you the opportunity to buy a new car without the cost of one.
Models that hold their value
Another thing to think about is what models you are looking at. Some models hold their value better than others and as such is likely to cost you more than others. The amount that a car slumps in value over time can cost you so it is worth considering before you commit to buying a certain model.
Some models shed quicker than others meaning that it will be cheaper quicker. This can mean that waiting only a year after a car is produced on certain models can save you a lot of money. In order to figure it out, you can use a car depreciation calculator to see how much value a model will hold and see how it will depreciate. The top ten seem to fluctuate regularly, so you should check regularly to stay ahead of the game.
At the moment the models that hold their value the most are the Mini, Audi, and Volkswagen. Keep an eye on these though as they may change sooner rather than later.
Timing is key
Once you have decided on what kind of car you would like to buy, you need to look at how to buy at the best prices. Dealers often have to meet targets, targets that are based on their bonuses. They are typically based on quarterly sales. This means that the end of March, June, September, and December are the greatest time to buy a car. Dealers are more likely to negotiate and offer better finance packages.
You should try and aim for a quiet time of day before going to a car lot. You should avoid weekends and the start of the month after payday. When the dealership is busy, salesmen are less likely to bargain with you as there will be plenty of other options for them to close the deal from someone else.
What car do you need?
Before you begin browsing for a car, you need to think about what car you need rather than a car that you want. There is no point in buying a convertible if you have a large family or a dog. You should ask yourself a variety of questions such as: what are your essential requirements? Do you need the car to have a specific function? Do you need a lot of boot space? All of these will guide you to the right car.
The cheapest cars to run
To save you time and energy trying to work out which cars are the cheapest to fuel; We have a list waiting for your right here. You can compare the running costs of different models and work out which is the most suitable for you. Things to think about can be:
Smaller engines: the choice of your engine size is not just about the amount of horsepower that a car can give you. A large engine will usually burn more fuel than a smaller one. Though this, of course, depends on how you are going to use the car. A small engine is more efficient when used at the correct speed limits, especially around smaller towns. If you need to travel long distances on the motorway then a larger engine might be for you.
Petrol or Diesel: Petrol engines tend to be more expensive than their diesel counterparts. But diesel is more expensive to buy than petrol. This will cost you more at the pump over time.
Manual and automatics: Switching between gears is extra work. Especially if you are prone to stalling your car. Automatics take the hassle out of driving but come with a premium price tag. They can often add a couple of thousand pounds to your car choice. Though another consideration is that automatics tend to be more fuel-efficient. It all depends on the car that you want to buy.
Insurance: The hidden cost of every car. If you are looking to save money, then buying a car with a cheaper insurance policy is the way to go. Obviously, newer models tend to be more expensive. However, smaller cars are usually cheaper to insure. If you are looking for a brand-new car then maybe a smaller model is the way to go.
Buying a new car
Buying a new car is the dream. However, it is not always the best financial decision. There are plenty of different options for you to take so that you can get the newer models without the premium cost of a brand-new car. Just make sure to research all of your options so that you can get the car that you want and that you need.
