There 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You may want to look out for cars that are about to be superseded by a newer model.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.
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