When it comes to buying a new car the potential
savings on offer can be huge. We guide you through the various buying options -
brokers, finance, pre-reg models - to help you get the most for your money
Buying a car used to be so simple. You'd go into a dealer,
test drive the car you wanted, engage in a bit of haggling with the salesman,
and a few weeks later you’d be off in your new motor. It’s different these
days.
There are
discounts everywhere, but choosing the right way to get them is tricky.
There are discounts everywhere, but choosing the right way
to get them is tricky.
Buying via a car broker effectively means getting someone
else to do the haggling for you, while pre-reg cars are instantly cheaper for
having been pre-owned. Car finance can bring huge bargains on certain models,
while the What Car? Target Price gives you a realistically achievable goal.
It’s a minefield, but we’re here to help. We'll explain how
each one works, and reveal the best current deals on our favourite cars in each
class.
What Car? Target Price
The What Car? Target Price is the most you should have to
pay for a new car from a dealership. This figure is the result of research by
our dedicated mystery shoppers, who constantly search for discounts in
dealerships across the UK. This figure should be achievable by any car buyer
prepared to do a little simple negotiating. Target Price is the most you should
pay, so start your negotiations much lower, because some dealers will be
prepared to reduce the price even more to encourage you to buy.
Discounts are
possible for two main reasons: a car manufacturer may fund a fixed amount off
specific models, on top of which dealers can cut their profit margin.
Discounts are possible for two main reasons: a car
manufacturer may fund a fixed amount off specific models, on top of which
dealers can cut their profit margin. It’s worth their while if they can sell
more cars and achieve their monthly sales targets and bonuses.
Take with you a copy of the latest Target Price figure for
the car (figures on whatcar.com will be the most up to date), to show your
dealer you know what you're talking about. If your dealer won't sell at the
Target Price, call the Target Price hotline (0845 527 6394) to be put in touch
with one that will. You can make the purchase over the phone, so even if you
have to travel farther to collect the car, the difference could be worth it.
Car broker
A car broker doesn’t actually sell cars; it simply puts
customers In touch with dealers who have agreed to sell at rock-bottom prices
if the broker makes them enough sales. Buying through a broker can be
particularly attractive if you want a bargain but don't want to do any haggling
- the broker has already done this for you.
Buying through a
broker can be particularly attractive if you want a bargain but don't want to
do any haggling - the broker has already done this for you.
The best brokers work with a fixed network of main
franchised dealers, and when you agree to go ahead with the purchase, you’ll
buy the car directly from a dealer. The broker makes its money by getting a cut
from the dealer’s profit, so you should never pay a broker for a car; the only
sum you might need to hand over is an administration fee, usually around £150.
Some car brokers, such as Carfilc and UKnewcars, charge nothing at all for
[heir services. Most dealers will recommend you collect the car in person so
you can get a normal hand-over, rather than paying to have it delivered.
An advantage of using brokers is that you’ll be protected by
the Consumer Contracts Regulations (which recently replaced the Distance
Selling Regulations), which include the right to cancel an order up to 14 days
after your receive it.
When using a broker, always remember to check that you'll be
the first registered keeper on the car’s V5C document.
