Driving down the cost of… buying a new car

The price tag on a new car is never fixed in stone and haggling could potentially result in savings of hundreds of pounds, yet only two thirds of Brits (65 per cent) would negotiate or bargain on the price of the new car. Surprisingly, Brits are more likely to negotiate at a car boot sale to save their pennies (78 per cent) rather than on a car forecourt to save their pounds.

Getting the best price for a part-exchange is also often overlooked which is a great way to cut the overall purchase cost of a new motor. Over 2.3 million motorists admitted that if they were to trade in their current car as a part-exchange, they would not even check its current market value – on sites such as Auto Trader – before stepping into the showroom. Even if the price offered seemed low, the majority of British motorists would just accept it for convenience - 40 per cent admitted that they wouldn’t want the hassle of having to sell their car privately and a fifth (20 per cent) wouldn’t have the time or patience to wait for a buyer, wanting to replace their car immediately.

Driving down the cost of… insuring a new car

Less than half of motorists (46 per cent) would contact their insurer to get an insurance quote before signing on the dotted line to buy a new car.  Without doing the relevant checks beforehand, motorists could be faced with an unexpected hefty bill or be left almost uninsurable. Visiting a price comparison site offers motorists a great way to compare the majority of the market in a matter of minutes.

Driving down the cost of… financing a new car

Thinking about finances is way down the list of motorists’ priorities. Whereas almost one in six Brits (15%) would undertake thorough research - spending over 20 hours flicking through car magazines and viewing cars – before choosing a car make and model, almost a third (30 per cent) would spend less than an hour, if any time at all, researching how to actually pay for their new car.

Women are least likely to spend any time consulting car magazines with nearly one in five (18 per cent) admitting to spending no time at all researching into a cars’ suitability. They could be losing out on significant savings or signing up for a finance deal that doesn’t suit them. 

Brits are also confused by finance jargon when it comes to funding the purchase of a new motor. 92 per cent of people surveyed were not able to correctly identify the meaning of the term ‘lease purchase’ – a popular means of finance offered at car dealerships. Whilst 30 per cent just didn’t have a clue, seven per cent thought that you had to purchase the car from a leasing company to qualify for this type of finance. 

Driving down the cost of… motoring

The research further revealed that when it comes to deciding which car to buy, one in ten (10 per cent) motorists would not look into the overall running cost of the new car, dismissing important factors such as the mpg, road taxation, CO2 emissions, and the cost of servicing and spare parts.  These factors should all be taken into account for when choosing the best make and model. 

Tips:

• Shop around - Drivers looking to buy a new car should shop around for insurance quotes before signing on the dotted line – on price comparison sites such as GoCompare.com - as well as contacting their current insurer to see by how much their current premium will be affected to ensure that it’s affordable.
• Go online - The best discounts are often available by going online rather than buying over the phone.
• Do your homework - Motorists should try to drive down the cost of their insurance by: finding out the car’s insurance group (the higher the group, the higher the premium); checking the level of security that comes as standard and consider fitting a tracking device; and not adding modifications that could either void or increase the cost of their insurance policy.
• Read the small print - When motorists shop around for car insurance, price is at the top of their minds but having a good quality product is also crucial – especially if the unexpected does happen.  Drivers should know what’s included on their insurance policy and what’s excluded.  Many insurers no longer offer ‘driving other cars’ cover and some policies don’t offer courtesy cars as standard.
• Review your annual mileage – Motorists should regularly review their annual mileage to make sure they’re not paying more than they should by over-estimating, especially if their circumstances change – such as moving jobs closer to home or the onset of maternity leave.

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