So, you’ve decided you want a new car. How do you get the best deal on a new car?
There are lots of things to consider when buying a new car, and some of these decisions can impact what sort of deal you get. At OSV, our team helps people like you find the best deal for them every day. That’s all we do, ever. So, we know exactly what sort of things you should be thinking about in order to get the best deal on a new car.
In this article, we’ll be talking through some of your options in regards to getting a new car. And how these options will help you get the best deal.
Leasing vs. Buying a New Car
One of the things you need to consider when getting a new car is whether you are going to lease or buy. While buying a car is a very popular option, leasing has also become increasingly popular over the years.
What’s the Difference Between Leasing and Buying?
The difference between leasing and buying is pretty simple;
When you lease a car, you pay a certain amount each month for a set period of time, and then you simply hand the car back at the end of the agreement.
If you buy a car, however, you pay a monthly fee (unless you buy it outright) for a set period of time. After that, you own the car forever. Or, until you want to get rid of it.
Will Leasing Get Me the Best Deal on a New Car?
Some of the advantages of leasing are that you can get a nicer car for cheaper, and that you don’t have to worry about depreciation because you won’t be responsible for selling the car.
So, taking those points into consideration, leasing could get you a better deal.
In our experience, an expensive car does not necessarily equate to an expensive lease agreement. This is because prestige cars, such as Mercedes, have a better residual value. This means that they are worth more at the end of their contract, so lease costs tend to be pretty good. If you want a nicer car for less money, leasing would definitely be a good way to go in terms of getting a better deal.
Because you return the car at the end of your contract, you don’t have to worry about depreciation. A car starts depreciating as soon as you drive it. So if you choose to buy, you can end up losing a lot of money when it comes to reselling in the future. While this might not be an immediate advantage, it’s something to consider when looking at the cost of a new car overall.
However, there are a few more costs that are not included in the initial lease price. These are things such as;
– Servicing costs – you have to service your lease car, and this is different from the standard MOT. Luckily, we’ve written all about the servicing costs involved in with a lease car here.
– Insurance – you have to have fully comprehensive insurance when you lease a car.
– Any extra mileage charges – you can read our article on excess mileage charges here
You can read more about extra costs when it comes to leasing a car here.
Leasing your next car could result in you getting a better deal than if you buy, but it does depend on your individual situation, and it’s something you should definitely consider.
Will Buying Get Me a Better Deal on a New Car?
The biggest advantage of buying a car is that you own it.
While the total cost upfront is significantly more, you don’t have to pay for fully comprehensive insurance if you don’t want to. Nor will you have to worry about going over your annual mileage.
However, you will have to think about depreciation. Cars depreciate pretty rapidly, which means that when it comes to reselling, you will lose money.
Because of the extra costs involved in leasing, it could be that you find buying a car will actually give you a better deal. But, it might not be if you want a nicer car for less money, or to not have to worry about depreciation.
So, you can get a good deal with both leasing and buying, it just depends on what you consider the best deal for your situation.
Dealership vs. Broker: Which is the Best Place to Get a Car From?
You should also consider whether you want to go through a broker or a dealership.
There are pros and cons, but it’s up to you which one you think will get you the best deal on a new car.
Will I Get a Better Deal if I Go Through a Broker?
There are many different brokers in the automotive industry, and all of them offer a unique service.
Brokers will usually access the ‘fleet’ side of the dealerships. This means that, as they order volume, they can get more of a discount. However, if you go through a dealer you only have access to the retail deals.
Some brokers may have a wide network of funders and manufacturers. This means that they will have access to a number of different deals. Therefore, they have more chance of getting the best deal for your situation. This also gives you more choice when making a decision.
However, there will be other brokers who have a smaller network of funders and manufacturers. But will have stronger relationships with them. Which may mean that they are able to get you a better deal but, you might not have as many options.
When it comes to choosing a vehicle broker, I would recommend doing your own research. Have a look at different brokers and see what they offer you. Getting a new car is an important decision and you want to get it right, so look at different brokers to decide which one will get you the best deal on a new car.
Unsure what to look for when choosing a vehicle broker? Fear not, we’ve got an article all about what to look for in a vehicle broker.
Will I Get a Better Deal if I Go Through a Dealership?
Maybe you would prefer going straight through a dealership.
There are ways you can get the best deal on a new car through a dealership. You will tend to find the best discounts on cars in March and September. This is because it’s around the time new models are released, so dealerships are more likely to slash their prices to clear their forecourts. Some dealerships offer discounts of up to 30-40%.
Also, manufacturers and dealerships have monthly and quarterly targets, which affect prices. If they are in the third month of the quarter and they are behind, they may be willing to make a loss just to hit volume targets. This doesn’t always happen, and I definitely cannot promise that it will happen to you, but it has happened.
Although, in today’s industry, there are great deals all year round. So it really does depend on what dealership you go to and on your individual situation. You don’t have to pay administration fees with a dealership, though, so that’s something you might want to take into account.
If you are looking to get the best deal when getting a new car, have a look around before you make a decision.
There are so many deals out there and some of them may seem perfect for you at first, but end up not being as great as you thought. There might also be some deals that don’t look as good as the others at first glance. But actually turn out to be much more suited for your situation. And therefore a better deal in the long run.
Also, don’t forget to shop around for things such as insurance, particularly if you are leasing. While some brokers have partnerships with different insurance companies, you are still responsible for providing the insurance. This has to be fully comprehensive so can be pricey. Shopping around a bit may help you avoid paying more than you actually need to.
To ensure that you get the best deal for your situation, you have to be open-minded.
While there is nothing wrong with having a preferred type of car or deal, you should be willing to consider other options.
If you wanted to lease you might want to be open to a longer lease agreement or a lower mileage allowance.
Ultimately, the ways in which you can get the best deal on a new car is down to your individual situation. You are the only one who can decide whether you are getting the best deal for your situation. So don’t let a pushy salesperson sway you towards something you don’t think is right for you.