Buy with your head, not your heart.
A brief guide to buying a new car and how to avoid the pitfalls By Tariq Musaji DSA Master ADI
A car is the second most important purchase after buying your own home You need to set yourself a realistic budget Will it be a cash purchase ? Or a finance deal? Match the vehicle to your personal needs Do your research. Visit websites and read reviews from actual owners Motoring journals reviews tends to be biased, especially if the manufacturer is advertising heavily in their magazine Which? Consumer watchdog are unbiased and produce reports for their subscribers.
If paying by cash, never pay the book price of the vehicle.
Negotiate with the salesperson
Don’t be afraid of knocking £2 - £3K off the list price
Go for a test drive, not round the block
A good test drive should cover a wide variety of roads
Petrol or Diesel engine?
Diesel engine is only good if you are going to drive more than 10, 000 miles per year There are now plenty of frugal engines which give good fuel economy Manufacturers fuel economy figures are misleading These are done in test laboratory conditions
Sorting out the deal – If buying on finance, make sure that you understand the true cost of borrowing, this is known as the APR (Annual percentage rate) Never sign the agreement on the same day, take it home with you.
If you don’t understand it, ask for help or clarification Think about the long term, if you in the future lose your employment or become ill ……….. Could you still afford the repayment? Do you have any other income in place? Ask for any insurance which protects you from illness or unemployment Or ask an Independent Financial Advisor.
Take someone else with you, when viewing the vehicle Preferably someone who has a good knowledge of cars
Shop around and take your time in making a decision
If you do agree to a sale‌‌make sure that it is in writing Agree everything in writing. Salespeople sometimes have a habit of forgetting essential items that had been agreed. Always pay your deposit using a Credit card. This gives you financial protection