10 tips for getting the best new car deal

Either you find yourself no longer wanting to rely on public transport. Or maybe your old car is not as reliable as you need it to be. Maybe you got a promotion and would like to get a new set of wheels for yourself and the family. Regardless of the reason for considering a new vehicle, one fact remains, you want to get the most for your money.

Below we list 10 tips for you to consider before embarking on your vehicle purchasing journey. Armed with this knowledge you can approach vehicle dealerships with more confidence and a better understanding of the negotiating process.

Car buying tips

1. What car?

First and foremost, you need to identify what characteristics in a car is the most important. Maybe you require more space for your family, or you are in the market for something more frugal for the daily commute. Identifying the most important aspects you will be looking for in a new car will allow you to create a shortlist with vehicles that tick all of the boxes you require.

This part of the buying process is going to be research-heavy, however, the expert car reviews on AutoTrader and the news and advice articles will offer answers for almost any question you can think of, so be sure to go have a look.

2. Budget

Now that you have created a list of vehicles that meets your requirements, the next step is to make sure that it falls within your budget. Using the AutoTrader car finance calculator, you will be able to calculate an estimated monthly repayment cost for the vehicles you like. Please note, however, that financing institutions will have administration fees as well as service fees to take into account. Thus consider the number projected by the calculator as a close estimate only.

Also to take into account when calculating the monthly repayment of the new car is the vehicle insurance that will be required by the bank. We recommend contacting a variety of insurance companies to get a compatible quotation on the vehicle/s you are considering for your next car.

3. Running costs

Now that you have a better idea of what you will pay to own the vehicle, you need to calculate what your running costs are going to be. This includes calculating the average kilometres you will be doing per month and then using the vehicle's claimed fuel consumption figure to find out how many litres you will be purchasing at the fuel pumps. 

An easy way to find out how much using your vehicle will cost per kilometre, including the average running and repairs cost, be sure to go have a look at the AA Vehicle Rates Calculator. This way you can refine your budget and see, which car you will be able to afford on a month to month basis.

4. Find your car

There are many ways in which you can find your next vehicle, whether it be by visiting a dealership or shopping online. Now that you have identified the vehicles that not only meet your requirements but also your budget, start looking for dealerships that have the model in stock and more particularly the ones that have the exact derivative on offer. 

These will be the dealerships you will want to visit as not only do they have the vehicle on the floor for you to view and test drive but dealerships do not want vehicles to remain on the floor for too long as every day it remains there, that vehicle is costing them money. If you go in and show interest in a vehicle that is ready to sell, you will have the upper hand in the negotiation.

5. Specials

While doing your research for dealerships that have that specific vehicle in stock, visit their social media pages or even browse the New Car Specials page on AutoTrader as you might find a dealer that has discounted the vehicle you want. 

6. Timing

If you have managed to live without this new vehicle up until now, surely you won't mind waiting a little longer. The reason why you would want to wait is for promotions that take place throughout the year. Also, keep in mind that many dealerships have set targets for each quarter and will reduce pricing on selected vehicles during the quiet months of the year in order to meet their goals. Thus approaching a dealer at the right time can get you a very good deal.

7. Don't buy while you are shopping

In order for you to be sure you are getting the right car for you, at the right price, from the right dealership, separate the days you are just shopping around you from the days you conduct test drives and the day you are buying the vehicle. This separation means you can spend more time focussing on each goal. 

On the days you are shopping around, spend time visiting different dealerships and finding the places that seem open to negotiations. Also, find those that have the vehicle on the floor and is eager to sell the vehicle. On your test drive day, visit those specific dealerships but this time give the vehicle all of your attention as you want to be certain that it delivers everything you need.

Spend time asking about the maintenance, specific features and aftersales support. Your buying day will then be just that. When you arrive at the dealerships go in only to negotiate for the vehicle and don't agree to test drives as you want to focus on the deals being made. Set individual goals for each day and prepare all the questions you have for each specific day to show you are prepared and interested.

8. Say NO

Set out enough time for you to comfortably research any terms the salesperson is using to reduce the price. For example, if you don't understand what a residual or balloon payment is, ask the salesperson but also excuse yourself to research it on your own. If you run out of time, rather leave and come back to continue the deal on another day, don't feel pressured to buy the vehicle on the day.

Salespeople will try to upsell a vehicle with items such as free tinted windows, a boot-liner or a nudge bar. These will have little to no benefit in the residual value of the vehicle. Rather ask the salesperson if instead those items can be exchanged for a further discount on the vehicle. 

Most importantly, never feel embarrassed to call off the deal and walk away if you couldn't get to an agreement that suits both the dealership and your budget. Rather say no and go shop around some more for better deals than to sign a contract that could end up financially crippling you in the long run.

9. Trade-in

Do not mention that you might be trading in a vehicle. Even if the dealer outright asks, say that you are interested in financing the vehicle with a cash deposit. If the dealer knows early on that you are considering trading in your vehicle, they might already structure a deal that works in their favour more than it does yours.

Before you mention that you will trade in your vehicle during the final negotiations, be sure to research what your current car is worth on trade-in to be sure that you don’t get short-changed.

10. Consider used

While there is room for negotiating on a new vehicle, it might not be enough. Sometimes there will just not be a deal to be made. In these instances, we recommend considering a used model. Sure it might not be the new model you had in mind but there are fantastic deals the can be had in the used vehicle market. You might even find yourself with a wider variety of used models to choose from

You will also find low-mileage or otherwise known as demo models advertised at quite a discount when compared to a new model. These are generally models used for the test drives and will be looked after and maintained by the dealership and will still be in amazing condition. 

New models also have quite a steep depreciation curve which means you could potentially find a higher specified used model for close or even fewer monies than the entry-level new model you were considering in the first place. So why wait? Start browsing for your new or used car on AutoTrader today.