Tips when buying a new car

With all the recent financial turmoil around the globe, there are some great deals to be found when buying a car – whether second hand or new.

Below you will find some great tips to help you negotiate the best deal.

1.     Do your homework

Firstly you need to decide which car you want to buy and then do your research online so that when you do visit the dealership or speak to the vendor you are in a strong position to haggle. Look to see if there are any similar vehicles for sale elsewhere and see how the prices compare. Even if you are buying a brand new car, the dealer will have room for maneuver on the price or throw in some value added services such as extra accessories, longer warranty or free servicing.

2.    Decide how much you want to pay

Remember there is always room for negotiation when it comes to car prices, especially in the current climate, so decide how much you are prepared to pay for the vehicle (but be realistic) and don’t budge. It is important to be prepared to walk away from the deal if you cannot agree on the price.  With some luck you'll get a phone call from the seller or dealer agreeing to your terms after you have walked.

3.    Take advantage of the Internet

Just like shopping for any consumer items, you can often find the best deals on new and used cars by shopping online. With fewer overheads and no commission to pay to salesmen, there can be extensive reductions in price if you pick up a car through an online dealer. However, even if you don't buy a car on the internet, print off some of the online prices or quotes received and take them into a local dealership with you. There is no reason why you couldn’t ask a dealer to match the internet price or offering. This tends to be most effective for used cars, especially if sellers think you are looking at other cars they will be more than happy to negotiate. Remember money talks!

4.    Try uncover their buy price

Their buy price (also known as their invoice price) is the amount the dealer paid to the manufacturer for the vehicle and it should be your goal to get as close to this price as possible.  The dealer will need to make some profit, but your goal is to minimize that. Fortunately some car buying websites do list their buy price so feel free to point this out to a dealer as you have a better chance getting a cheaper price. Similarly, look for information on manufacturer rebates as some companies offer cash incentives to dealers to promote certain vehicles.

5.    Buy at the right time

If you're looking for a brand new car and not too worried about having a 2011 registration plate, then it pays to time your purchase well. Many dealerships look to shift excess stock ahead of the introduction of new registration plates closer to the end of the year or early the following year.  If you're therefore not quite ready to make a purchase, then consider holding off until the end of the year or early in the new year. With used cars, it is also important to keep track on how long the cars have been on the market. Most websites do carry a 'date posted' mark on used car advertisements, therefore giving you an idea of how eager the seller is for a deal.

6.    Be serious

Dealers and even private sellers will work a lot harder if they think they're going to get a deal so let them know you're there to buy a car if the deal is right. It is important to not come across as desperate to buy as this could reduce your chances of picking up a bargain, therefore play it cool.

7.    Take a knowledgeable friend for the test drive

You should never buy a new car without taking it for a test-drive as it can highlight unearth some quirks you may not want to live with. When buying a used car it is important to take a friend with you who knows a thing or two about cars and can point out any unusual sounds or movements. Even if the problems are nothing to be concerned about it could help you when haggling for a better deal. It's also worth checking the vehicle has a clean history.  Vehicle checks are fairly inexpensive and are available online.

8.    Get more for your old car

If you have a car to sell, you do want to get the highest price possible for it. Trading it in as a part exchange on your new vehicle is the easiest option, but make sure the sales adviser contacts a number of dealers for bids on it so you get the best deal possible. However, if you sell it privately, you'll probably get even more for it.  Regardless on whether you do trade it in or sell it privately, it is important to have your car professionally cleaned and detailed as that can add a substantial amount to the sale price.

9.    Best car finance deal

When talking to car dealers you should only negotiate on the sales price.  Make sure you don't get lured in by attractive finance offers. Dealers often convince prospective buyers with figures and they know how to make a car deal sound very good without focusing on the monthly repayments. Find out how much the finance package will cost over the term of the deal. And how flexible is it? For example, what happens if you want to get rid of the car before the end on the term.

One ploy I always use is to go into the dealer with my finance pre-approved and just talk dollars.  I always manage to get a better finance deal with my local bank.

10.          Shop for extras

Many dealers throw in incentives such as servicing, breakdown cover and car insurance. On occasions their deals for these products can be attractive, with some dealers even offering a year's free car insurance with some purchases. When you see such deals, it pays to check that the cover is adequate and ask to see examples of repayment plans or prices without these extras. Often though you may be able to save a significant amount of money if you purchase these extras yourself, therefore make sure you are vigilant when talking to dealers.

I hope this helps you secure a great deal and happy driving!