Drive a bargain in 2020

FIVE-MINUTE GUIDE TO... NEW REGISTRATION PLATES FOR CARS

THE NEW “20” car registration number plate is launched from today and drivers who want to show the world they have a new set of wheels will be tempted to rush straight to the dealerships.

So what’s in a number? A surprising amount, if you are planning to get the most out of your new car purchase.

New number plates are issued every six months, on March 1 and again on September 1.

The first two letters identify where the vehicle was registered, for example, numbers running from BA to BY are for Birmingham, while the third and fourth numbers signify the year in which the car was made.

From today, these will say 20 to indicate 2020, while September will add 50 to that number, making it 70, allowing buyers to easily work out the age of a vehicle.

The final three letters on the plate are randomly allocated.

The current system was launched in 2001 and will run until February 2051, when the last age identifier will be 00.

Plate changes are not just a numbers game. Sepi Arani, motoring expert at car sales website Carwow.co.uk, said March and September are the best months to bag a top new car deal.

“Sales teams register the vast majority of their cars in these months, and can be more flexible to get a deal over the line.” Dealers also have quarterly targets, and with March 31 marking the end of the first quarter, you might get an even deeper discount as the month closes: “Be flexible on your car’s exact specification to get the best deal.”

If you do not want the bother of selling your old car privately, most dealers will offer part exchange on your existing motor. “First check prices for your make and model online, as that will help you negotiate,” Arani said.

When comparing, remember that car dealers charge slightly more than private vendors: “They have to prep their cars to a higher standard and offer superior consumer protection.”

AA Cars chief executive James Fairclough said if you are not wedded to a 20 plate, this might be a good time to buy a slightly older car, as values typically drop at this point.

“Cars registered between September 2019 and February 2020 are not old by any stretch of the imagination, but their value will fall simply because of their plate numbers.”

If a manufacturer has introduced a new generation model to coincide with the March plate launch, you could use this as leverage to get a good discount on the previous model, he added.

The plate change will also hit used car values, throwing up bargains, Fairclough added.

Jason King, customer director at Sainsbury’s Bank, said as well as the initial outlay, do your sums to make sure you can also afford to run your new car.

“Always consider ongoing costs such as motor insurance, fuel consumption, road tax, servicing, new tyres and any parking permits.”

If you cannot afford to buy a car outright, options include leasing, personal contract purchase, or a personal loan.

Always check the full cost of finance. King added: “This will include the deposit, monthly repayments and any interest, as well as the final payment if there is one.”