Buying a new car

Buying a new car

If you really want to save money when buying a new car, stop. Don't do it in the first place. Instead, buy a nearly new (pre-registered) car. These are brand new in all but name - they may have as few as 20 miles on the clock - but can easily be 20% cheaper, saving you a couple of thousand pounds. Dealers register them to hit sales targets and then sell them on, so you're the second owner - but don't worry, just enjoy the saving (and check when the warranty expires).

Advanced saving tips

1. Never pay top dollar for a brand new car

If it's got to be a spanking new car rolled out of the showroom, just make sure you don't pay the full list price. The What Car? website (whatcar.co.uk) helpfully lists a useful "target" price for all brand new cars. This is the real price that you should then aim to further undercut - and if a dealer won't discuss a discount, move on to one that will.

Most buyers, particularly in the climate today, should be able to get between 5% and 15% straight off with a bit of shopping around and some mild haggling. It's good to remember that dealers are generally keener to cut a deal when business is quiet - usually in August or December - or when sales targets need to be met, which is more often than not near the end of a month.

2. Carefully compare the trade-in offers

If you are looking to trade in your old car, talk to several dealers and then compare.....continued below

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3. Weigh up all your financing options

If the dealer is offering a 0% finance deal, these can be worth taking in a credit crunch - or then again, you may find you pay less by borrowing the money elsewhere and paying cash upfront. A cheaper cash price may more than offset the interest you'll pay on the loan. It's worth noting that, in general, dealer-organised finance and insurance is quite a lot more expensive than the same products sourced from conventional suppliers.

And remember, never compare the finance deals that quote the charge per week - always look at the total cost of the loan over the whole period you are being quoted on.

4. Buy your car on the internet

If you know the exact model you want, even bigger savings can be gained from internet-based car brokers. These companies bulk-buy popular models and pass on part of the saving to the customer. They can usually undercut even the most generous of main dealers - savings of between £2,000 and £5,000 are easily achieved, with more further up the food chain.

Once you've paid your £500 deposit, you may have to wait a few weeks for your car to be delivered to your home on a trailer; as you take delivery, pay the balance by debit card. While these deals can be spectacular, they are less likely to take in your old car in part-exchange.