You’re looking for a new car but understandably want to find some of the best deals around – deals that leave more of your money in your pocket!
At ACF Direct we might be able to help with our top five tips below.
To be clear – our tips here are based around brand new cars requiring a new registration, rather than second-hand or even nearly new vehicles.
- Ask yourself a hard question
Many of us love new cars.
The excitement of selection, being feted and flattered by the dealer, those never-to-be-repeated smells of new upholstery – they’re all a great experience. Then there’s the cachet associated with your friends, family and neighbours looking admiringly at that new registration!
However, that all comes at a price. In fact, typically a very significant price.
The often-stated figure is that the moment you turn the key in your new car for the first time when taking delivery, about 10% of its value (the price you’ve just paid) vanishes and can never be recovered. Over year-1, the depreciation typically reaches 20%.
That’s a big hit though it’s only part of the story. That 10-20% is an average and some models can lose a staggering 50% of their value in the first year.
Therefore, from a cost-effective viewpoint, you should ask whether or not you really must have that brand new car and new registration. You might be able to save yourself a very substantial sum by purchasing a 12 or 24 month old vehicle in excellent condition.
- Use psychology
Salespeople in dealerships are typically paid a set salary that is boosted significantly by sales-related bonuses and sales targets.
Their performance against target is typically defined and measured on a quarterly basis. Those quarter ends often fall towards the latter part of March, June, September and December.
What this means is that if you’re looking for a new car registration deal, the sales folks in the dealerships just might be a little more worried at those times of the year than others. To put it bluntly, they may be under more internal pressure to meet their quarter-end targets and that might make them more amenable to your offers than at other times of the year.
- Get your finance deal ready in advance
Dealerships typically make money on selling cars but also on finance deals they facilitate. There’s nothing wrong with that but be aware that the price of the vehicle and the cost of your finance can become entwined.
In other words, you might think their finance deal is great but how much more would they have reduced the price of the vehicle if you had your own finance and weren’t dependent upon theirs? You might find you have a much stronger negotiating position.
It’s worth thinking about and of course, we may be able to assist in providing car finance for new car registration deals.
- Consider “pre-reg” options
A little-known fact is that car dealerships sometimes register a new vehicle before they’ve sold it. This helps them keep their sales figures up.
The downside to that is that to a buyer, the vehicle looks pre-owned even though it is in fact brand new. As a result, your negotiating position is much stronger.
Keep an eye out for “guaranteed unused pre-registered” vehicles and save money.
- Watch out for “optional extras”
Optional extras can significantly increase the price of a new vehicle.
Ask two questions:
- do you really need that extra gadgetry;
- is there a similar vehicle, perhaps of a different marque, where all that is included as standard?
Those cost savings may be huge!