Sep 102018
 

New car showroomThere comes a time in a car owners’ life when it’s time to say goodbye…it could be a change in lifestyle, high maintenance costs, or just because you fancy something new. Whatever the reason, be sure you’re getting the best deal and not left out of pocket when buying your next car.

Looking to upgrade to a newer model?

Read our Warranty Direct guide on getting a swankier car, for less.

The benefits of upgrading

The advances in car technology are progressing at such a fast rate that if you stick with your current model for too long, you could miss out on new features that make driving both easier and safer.

Not only this, but cars depreciate quickly and after three years you could lose up to 60% of your vehicle’s original value.

So, when looking to upgrade your car, one of the first things you need to do, is to look at its current and future market value to make sure you upgrade before it’s too late.

Out with the old

Before buying your swanky new motor, you need to work out what you’re going to do with your old vehicle. Trade-in offers are typically less than you’d get in a private-party sale but can be much quicker and less hassle.

To work out if you’re being offered a reasonable price on your trade-in car at a dealership, you first must know what your vehicle is worth. Do some online research, print out the results and take them with you, as evidence to help with negotiating.

If you’re deciding between two dealerships with similar offers, you may want to lean toward the one at which you intend to buy your car. This may give you some leverage since you’re giving the dealership business on both the trade-in and the car purchase.

Look for models which hold their value

You may want to look out for cars that are about to be superseded by a newer model. These ‘run-out’ models are often found with discounts of up to 30% on the original price as dealers make way for shiny new stock.

However, some models shed cash quicker than others, meaning it will be worth a lot less in only a short period of time. So, make sure you check the resale price to see if some models may slump in value when their replacements arrive, (especially if you plan to sell it on in a few years).

You can also use our Reliability Index to help you work out how likely you are to have issues with a certain make or model.

Timing is everything

Dealers have targets to meet, with bonuses up for grabs, so they will usually be more willing to negotiate and offer more attractive finance packages at the end of each sales quarter. This means buying a vehicle at the end of March, June, September and December, could get you a better deal.

Try to avoid weekends or the start of the month just after payday. A dealership crammed with wannabe buyers isn’t ideal if you want to pick-up the best bargain.

Think about finance

While low-rate finance schemes with modest monthly payments may bring newer cars within your reach, you need to be sure you can keep up with the monthly payments as missing any can affect your credit rating and your car could be repossessed.

As mentioned earlier, newer cars can lose their value quite quickly, so you may want to look at pre-owned options first.

Used cars are cheaper initially and you could get more for your money, buying a top of the range older model for a similar price as a basic spec new car.

If you go down the used car route and the original manufacturer warranty has expired, you will also need to think about getting an extended warranty in place to protect your vehicle against unexpected failure and the costs that come with it. You can always get a quote with Warranty Direct to see how we could help you.

Policies underwritten by Pinnacle Insurance plc. Arranged and administered by Warranty Direct. Authorised and regulated by the Financial Conduct Authority.

Sep 032017
 

The prospect of buying a brand-new car is an exciting one, especially as some of the newest models give access to the latest features in terms of safety, performance and comfort.

It’s vital you give your decision careful consideration though, as different needs, budgets and features, means finding the right option can be confusing.

That is why we’ve put together our Warranty Direct guide on what to look for when buying a new car.

Budget

Before you start looking at favoured options, you should finalise a budget and know how to maximise it. Some will be able to buy a new car outright, but many of us will need to consider finance options. Some of the most cost-effective finance deals are available with 0% APR and if size is not an issue smaller models can be a good option as many are available from as little as £150 per month.

How much your loan costs will depend on your credit history, and knowing this can be useful as it will give a better idea of what to expect from lenders. The Consumer Credit Act allows consumer access to credit reports by post or online.

Longevity

Taking a more practical view when it comes to vehicle choice is a good way to pick a car that’s best for the long-term. Whilst a small sports car may retain its value well and be suitable for your current lifestyle, it might be completely inappropriate for your needs a few years down the line.

Economy, in terms of MPG and fuel type, will also be important with the new diesel tax on the horizon. Smaller petrol cars will be good to consider after this change, as they will most likely retain their value better and have lower road tax.

Features and extras

Motoring technology is advancing at an unparalleled rate and in-car systems such as WiFi, 4G connectivity and voice control are becoming commonplace. However, technology will continue to develop features such as parking assist, night vision cameras and autonomous safety features, meaning more improved safety and comfort.

Assessing and researching these latest features will allow you to work out which deals are the best value for money when it comes to meeting your own, personal requirements.

Models that hold their value

The biggest issue when buying a new car is they can lose their value quickly. Most cars depreciate at a rate of around 20% per year over the first three years of ownership. Some models shed cash quicker than others, meaning you’ll get a lot less when you come to sell it on.

It’s important to research which vehicles usually retain their value better than others, such as budget SUVs or smaller sports cars.

For more information on depreciation, you can also consult our guide.

You can guard against any potential loss of value by investing in a GAP insurance policy, which is particularly worthwhile if you’re paying for a new motor on finance.

When it comes to a car, assessing your needs, financial situation, and forthcoming industry developments will mean you’re well-placed to get the maximum for your money and your vehicle will retain more value for longer.

Jul 052016
 

Many motorists are taking up the opportunity to get GAP insurance upon the purchase of a new vehicle; even if it’s a used car. GAP Insurance is a product just as popular and sometimes more desired than a car warranty.  So why should car owners consider this insurance cover?

Nearly half a million cars are written off each year through accidents and around 150,000 cars are stolen*.  For those unfortunate enough to experience this situation, they may find themselves in a tricky situation, finding cash, to replace their lost motor. Motor insurers will commonly not pay out the full original value of the motor and instead only pay out a settlement equal to the value of the car at the time of the accident.

So if a brand new car costing £20,000 depreciates in three years to £10,000 and is then written off due to accident or theft, the motor insurer will only pay out the £10,000. The trouble now is finding the additional £10,000 to purchase a for-like motor and this is where GAP insurance plays its key role.

GAP insurance adds that extra protection to the depreciation of a motorist’s vehicle. As the name indicates, it will cover that missing gap of money to meet the actual value of the car at the time of purchase. So with GAP insurance taken out against the vehicle, that additional £10,000 doesn’t become so hard to find.  That is GAP insurance in its simplest form**.

The appealing factor of GAP insurance is that it available for brand new or used cars brought through dealers and used cars purchased privately in a variety of options.

Return to Value: This GAP insurance option pay the difference between what the motor insurer pays and the value of the car when GAP insurance is taken out.

Return to Invoice:  This GAP insurance option covers the different between what the motor insurer pays and the original invoice price paid for the car.

Vehicle Replacement: Designed for new cars, this option pays the difference between what the road insurer pays and the cost of a brand new car of the same make, model and specification. Even if manufacturer’s prices have increased since your original car was purchased.

Ultimately, having a car written off can be a distressing experience for anyone without having to think about how to replace it. GAP insurance can help bring that extra element of security so if the worse possible scenario with your car happens – getting back on the road will be easier.

Warranty Direct’s GAP Cover Insurance options have been designed to be flexible to motorists’ requirements whether you have a brand new or used car brought from a dealer or privately. With wide claims limit range and a dedicated team, Warranty Direct’s GAP Cover Insurance is designed to protect motorists from the pitfalls of a “total loss.” Call today on 0800 097 8838 or visit gapcoverinsurance.co.uk .

* – Based on stats provided by Honest John and LV=Car Insurance Report 2014

**- Terms and conditions apply.

Warranty Direct is an Insurance Intermediary authorised and regulated by the Financial Conduct Authority. Our FCA Register Number is 309075. Warranty Direct Limited is a company, registered in England and Wales No. 3233010 at Pinnacle House, A1 Barnet Way, Borehamwood, Herts, WD6 2XX. Policies are subject to English Law.