Why now’s the time to drive off with a gleaming new car bargain
BUYING a new car in a pandemic may seem like madness, but with the arrival of a new registration plate tomorrow you could drive off with a bargain. Car sales fell by almost 40 per cent last month compared to the same time last year and even with the arrival of the ‘21’ registration plate and the end of lockdown in sight, people are reluctant to splash out on a new motor.
Buyers are not just being deterred by economic uncertainty. Most are also unable to get behind the wheel for a test drive.
Lockdown rules mean car dealers must keep showrooms shut and only offer a forecourt ‘click-and-collect’ service until mid- April. Sales patter is restricted to walkthrough videos.
To lure buyers, mouth-watering discounts are on offer as well as free extras. With showrooms reopening in six weeks, you could secure a bargain now and pick it up later.
Keith Adams, editor of car buyer’s bible Parkers, says: ‘Currently, you can avoid any uncomfortable sales pitch and take advantage of a buying opportunity.’
Much of the legwork can be done in the comfort of your home thanks to online advice. Parkers offers detailed reviews and tips. But you should also tap into other website resources, such as magazine What Car? and PistonHeads, for reviews and recommendations.
What Car? will even haggle on your behalf – rooting out special offers. It will often beat down the retail price, for example on popular new BMW and Volkswagen models recently by about 20 per cent. It has been able to knock 7 per cent off the retail price of the average new motor, saving about £2,800.
Steve Huntingford, What Car? editor, says: ‘Online sales are driving the market. Talk to a local dealer, then check if we can get you a better price. If so, this same seller should be able to match it. Then book a virtual appointment with the dealer – where they walk you round a car via a live video.’ What Car? research indicates that 45 per cent of new car buyers are comfortable with buying online.
Adams says: ‘If possible, take a vehicle for a spin before parting with money – even if it means waiting until April. But if you are serious about buying now and need a vehicle for essential travel, a dealer might be able to find a way of getting you a test drive.’ It might mean picking up a sanitised car from a forecourt with the keys left inside for you to have a ten-minute drive. The only dealer officially offering 90-minute ‘touchless test drives’ is Tesla, where drivers can pick up and drop off a car without meeting anyone. What Car? says the £ 11,600 Dacia Sandero currently represents perhaps the best new car bargain.
Others worth checking out, it says, include the Seat Leon (£23,515) as a family car; the hatchback Toyota Yaris (£33,495); the sport utility vehicle Volvo XC40 (£33,545) and the executive BMW 3 Series Sport (£44,635).
For those interested in a hybrid, What Car? suggests the Ford Puma (£22,790) and Skoda Octavia Estate (£31,745). Recommended electric cars include the Volkswagen ID.3 ( £ 3 2 , 9 9 0 ) a nd Tesl a Model 3 (£40,490).
Electric vehicles can represent good value with a £3,000 Government discount off the list price, and there is no road tax. An electric car might use £4 of electricity to travel 100 miles, while a petrol vehicle doing 40 miles to the gallon could use £11.50 of fuel for the same trip.
More than 80 per cent of new vehicles are bought on credit – with
‘Mouthwatering discounts on offer’
‘ Push for free extras before sealing deal’
the most popular option being a personal contract purchase.
After putting down a deposit, you pay a monthly fee for an agreed period, after which you have the option to buy the car outright. The loan covers the amount of money a car is predicted to fall in value for the period of the agreement – typically three years.
So if a £20,000 car is expected to be worth £12,000 in three years, you might pay back £8,000 plus interest. At the end of this term, you pay what the car is estimated to be worth – £12,000 – to keep it. Or you hand back the keys and buy a new car with another loan.
ADAMS says: ‘As a rule of thumb, an interest- free loan might prove better value than a personal contract purchase, though it can mean handing over a larger deposit. So ask about the option of an interest-free loan and if they could make a deposit contribution.
‘That way, you end up paying less but the dealer does not lose face on lowering the asking price. But don’t stop there. Push to see if they are prepared to throw in free extras – perhaps a better stereo, a sun roof and fancy wheels – to seal the deal.’
Before completing a purchase, consider insurance. Comparison websites such as GoCompare and Confused will provide estimated costs prior to buying.