Be careful when buying cars (Image: Getty)
Thousands of new-car buyers are still paying more than they need to, not because they chose the wrong car, but because they don’t know what a great deal actually looks like.
Pat Hoy, founder of Insider Car Deals, which tracks real-world new-car discounts and PCP offers across the UK, says the difference between a car’s list price and a genuinely strong deal can run into thousands of pounds.
Audi A3 Sportback 1.5 TFSI e 204 Sport S Tronic
£39,340 list price, £30,349 real-world price = £8,991 total saving (22.8%). PCP £285 p/month.
Volkswagen Golf 1.5 TSI 150 Match
£30,275 list price, £24,579 real-world price = £5,696 total saving (19.7%). PCP £276 p/month
Nissan Qashqai e-POWER 1.5 Hev 205ps N-Connecta
£37,330 list price, £30,576 real-world price = £6,754 total saving (18.3%). PCP £273 p/month
Working out what a genuinely good deal looks like isn’t easy. Most of the information available to buyers comes either from dealers or from car websites that make money by passing your details to them. That means the prices you see are often the ones sellers want you to see, and not a clear view of what’s actually achievable.
1. Set your budget, and stick to it
Decide early on whether you’re working to a total price or a monthly payment, and don’t drift from it.
In the showroom, deals can easily be tweaked with longer terms, different deposits and adjusted figures to make the numbers look right. Holding firm on your budget keeps you in control..
2. Compare the total amount payable across every option
Paying cash doesn’t automatically secure the best deal.
A low-APR PCP offer with a strong finance deposit contribution can sometimes mean you pay less overall than the headline cash price.
The key is to compare the total amount payable under each option, including deposit, monthly payments and any final balloon, before deciding.
Patrick Hoy of Insider Car Deals (Image: PATRICK HOY)
3. Get more than one quote — and be prepared to walk away
There’s a lot of talk about the best time of year to buy a new car, but in reality deals can vary more between dealers and how well a car is selling than by time of year.
If a salesperson won’t move on price, check whether the offer includes all available discount and manufacturer support, then speak to other dealers.
Being willing to walk away is often what leads to a better deal.
4. Understand how deals are structured — and don’t take everything at face value
You may be told a model is “selling out”, that only certain cars qualify for the best savings, or that a finance contribution is the same as a discount.
Sometimes these points are valid, but they’re also commonly used to limit negotiation.
It’s worth checking against other dealers before taking them at face value.
5. Separate the new-car price from your part exchange
Always agree the best possible price on the new car first. Only then introduce your trade-in.
If you combine the two too early, it becomes much harder to see where the real value is, and easier for the numbers to be adjusted in a way that isn’t in your favour.
Most buyers don’t know whether a quote they’ve got is weak, average or genuinely strong, because they don’t have an independent benchmark to compare it against.
Insider Car Deals provides that benchmark by continually mystery shopping realistically achievable prices from dealers across the UK, combining dealer discounts with manufacturer saving and PCP finance incentives.
Patrick Hoy has worked in car sales for more than 30 years and is now at insidercardeals.co.uk
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