Why now is the best time to drive a hard bargain

Car dealers are luring buyers with a bonanza of great offers, finds Jonathan Jones

Sales of new cars are dwindling, but buyers upgrading now can take advantage of some great deals. In September, new car sales declined 4pc on the previous year, marking the lowest number of cars sold in the month since records began in 1999, according to data from the Society of Motor Manufacturers and Traders.

September and March have been key months for car sales data since Britain moved to the “two-plate system”, where licence plates are changed every six months. But the number sold last month was almost 16pc less than the average e September sales over the past decade. . Sepi Arani of Carwow, a comparison n site, said: “With the vast majority of f brands looking to recover lost sales s during lockdown, now more than ever r we see increasingly strong offers in the e market, making the remainder of 2020 0 a great time to snap up a great deal on a new car.”

HOW TO FIND A BARGAIN In the face of such patchy demand, both h car dealers and manufacturers have cut prices or offered greater incentives in an effort to lure buyers back.

For example, Toyota has offered customers up to £4,000 off a new car as part of a scrappage scheme, while Hyundai is offering a similar scheme up to £5,000. Volvo, meanwhile, is offering 0pc finance rates across its entire range, as well as increased deposit contributions via other offers.

Speaking to many individual dealers is the best way to get a good deal, but it can be arduous. The vast majority of brands offer online services to save

NEW VS OLD While new car sales have fallen, the used car market has been buoyant. In September, the AutoTrader Retail Price Index recorded the largest- ever monthly increase on its website.

The online second-hand marketplace looked at sales of vehicles in September and found the average price of a car sold had risen 7.6pc compared with the previous year.

Petrol and diesel car prices rose faster than electric vehicles. In September, the average price of a used petrol car was £12,480, an increase of 8pc on 2019. Diesel cars cost on average £14,710, a 7.8pc rise.

Those with extra cash should consider buying new rather than second-hand. Dan Hutson, of price comparison site comparethemarket. com, said new cars were likely to be more efficient and less polluting, so they may well be cheaper to fuel and cost less in road tax. Mr Arani added: “New cars can make a lot of sense for consumers, with warranties meaning no stress over breakdowns and cars exempt from MOT for the first three years of its life.”

Despite prices falling, however, new cars are more expensive than used models, and tend to lose their value once bought. Insurance may also be higher as parts for newer cars tend to be more expensive to replace.