; S E VEN S T EPS TO B UYI NG T HE RI GHT C AR
If you follow these seven steps you’re far more likely to drive away in your 66-plate motor with the confidence that has come from sealing a really great deal, James Foxall writes
B uying a new car can be exhilarating, satisfying, irritating, terrifying – or most probably a blend of all four. But whether you are paying from hard-earned savings or signing up to a multi-year finance commitment it makes sense to ensure the experience is as positive as you can make it.
The trick is to conduct your own research before you set off, according to Jonathan Lawless, who has been buying cars professionally over the past 25 years for broker Car File. He says: “The last thing you want to do is sign up to something that isn’t right for you.” The information is readily available to ensure you’re at least as informed as the salesperson you are talking to – if not more so.
1. NEVER HAVE JUST ONE MODEL IN MIND
“Don’t just stick with your first choice. Consider similar models. The worst that will happen is it will confirm your first choice.” Read independent reviews on the cars you’re interested in as well as visiting forums to read owners’ experiences.
2. SET YOUR‘ ANCHOR PRICE’
Once you’ve decided on a model, figure out how much it’s going to cost by using the tool on the maker’s website. This will give an accurate price for the car in the exact specification you want. This gives an anchor price to work out what you consider to be a reasonable offer and assess if what the sales exec comes back with is reasonable.
3. COMPARE OFFERS
Even if you’re set on buying from a traditional showroom, it’s worth seeing how much other sources are offering the model that interests you. This will give you an idea how much scope the sales exec has for shifting the price down. Web-based dealers, for example, have keen prices on new cars as they don’t have the overheads of a showroom. Consider car brokers too. They can usually secure healthy discounts on popular cars as they help dealers move hard-to-shift models.
Also go through the offers section on the manufacturer’s website. The ability to discount on new cars is normally split between the maker and the dealer. Usually makers will advertise the offered discount on their website as a “deposit contribution”. The dealer will have a margin that is separate to this so can take more money off on top of the manufacturer’s discount.
4. CHOOSE YOUR MOMENT
You will now know which car you want and how much you want to spend so it’s time to head to the dealership. But if you want the best possible price, there are times when you’ll find that the dealers are far more amenable to haggling. The car sales industry works on bonuses, which are paid monthly and quarterly. At the end of the month, the sales manager might have part of their bonus resting on closing your sale. If it’s the end of the quarter (and Q3 finishes on 30 September) or the end of the year, there may be even more at stake.
5. BE READY FOR EXTRAS
In addition to researching the car online, it is also worthwhile looking at the add-ons. The margins on new cars are so tight these days that dealers look to make money on extras such as guaranteed asset protection (GAP) insurance, paint protection and tyre and wheel protection. There is nothing to say that you have to buy any of these from the dealership so investigate them online. It’s worthwhile doing a thorough job here. You need to know that the products you’ve priced are likely to be similar to or better than the dealer’s alternatives.
6. SET ASIDE PLENTY OF TIME
Now it’s time for you to head to the dealership. Just make sure that you do allow plenty of time. John Kilby, who trains sales staff for the PSA Group, says: “There’s so much paperwork for the salesperson to do so it’s not the sort of thing you can rush in 10 minutes. The more time a customer allows, the more relaxed it will be and the harder the sales executive will work for them.”
7. BE HONEST AND OPEN
Now we’re down to the nitty-gritty, human relationships come to the fore. There’s no point going in and trying to throw your weight around. Be prepared to work with rather than against the salesperson; there should be some give and take on both sides. David McConnon, who trains salespeople for carmakers and independent dealers, says: “The most rewarding sales from both perspectives are always when the salesperson and customer have the sort of relationship where both sides can articulate their views without any concerns.”
Do that right and you and the sales exec should come away feeling that you’ve got the best deal possible.