Did you know negotiating on the price of a new car could save you as much as 13 percent?
Prices of new cars may seem fixed, but if you’d like to save yourself a little cash, think of them as a starting point instead.
There is the potential for huge savings, if you know the right questions to ask and the best places look.
To help you secure the best possible price for your new vehicle, Warranty Direct has put together its top tips to help you negotiate like a pro.
Do your homework
Research your car shortlist and make a note of exactly what you need to support you in your day-to-day life. Having an exact specification in mind will prevent you from being swayed into looking at other models and knowing the manufacturer’s recommended price puts you in a strong position to negotiate.
If you’ve set your heart on a specific model, be wary of special offers on a lower-specification car. An alternative model is often more beneficial to the dealer than to you. Unless the deal is obviously worthwhile and meets the needs you originally listed, stick to your guns. Ultimately, you’re the one who knows which features will best suit your lifestyle.
You can check your options using our Reliability Index, which calculates individual car models’ reliability considering the following factors:
- the number of times a car fails
- the cost of repairing it
- the average amount of time it spends off the road due to repairs
- the average age and mileage of the vehicles we have on our books
This ‘real world’ picture of particular models could help make your decision an easy one.
Different dealerships will have different targets, margins and prices, so shop around to see where the best deals are. You can use your research as a bartering tool. If one dealership gives you a quote, take it to another to see if they can beat it.
Online sites such as Car Wow and UK Car Discount have changed the way we buy cars and could help you save thousands. You can compare costs of new cars from a range of sources in the comfort of your own home to find the best deal. It may mean travelling a bit further for your vehicle, but the savings may be worth the journey.
Think about the time of year
You might get between 10 to 12 percent off the ‘list price’ of a new car, just by buying at the right time of the year. Car salespeople have targets to hit, so look out for deals and ask for greater discounts during quieter times of the year. This is usually in December, at the end of the month or financial quarter.
One of a dealer’s biggest annual events are the registration plate changes. Showrooms offer big discounts on cars with old plates as they need to shift them before sales slow, which is often before 1st March and 1st September.
High sales at larger dealerships may mean they’re able to offer better deals. Keep an eye out for finance with 0 percent interest, discounted models and free extra equipment.
Dealerships are often incentivised to sell cars on finance as they can make more money from the sale. This means if you are thinking about a finance deal, you may be in a good position to negotiate a few more extras. However, be cautious. Keep a close eye on the APR, or interest rate, as some deals are better than others.
Warranty Direct is a trading style of BNP Paribas Cardif Limited. BNP Paribas Cardif Limited is a company, registered in England and Wales No. 3233010 at Pinnacle House, A1 Barnet Way, Borehamwood, Herts, WD6 2XX and is authorised and regulated by the Financial Conduct Authority, Register No.309075.