How-to Guides » OLD GUIDE Buy a car for less

A car is a significant purchase. Take your time and ensure that you get the best possible deal.

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Get a great deal

How-to Guide Tips 3 tips on this task | Tweet

1) Buy it interest-free
You can save money by putting the car on an interest-free card. If you can, use a 0% on purchases card to buy the car. Then, when the interest-free period runs out, move the balance to a 0% on balance transfers card.

2) Avoid dealer financing
Taking out a loan through a dealer means that you'll pay more interest as they will take a cut as well as the loan provider.

If you get a loan through a dealer, you’ll pay interest to the loan provider and a cut to the dealer. Get a competitive personal loan instead.

3) Haggle
Remember, this is a big purchase so even a small discount is worth getting. Do your research on what the car is worth so you are prepared going in, but also the market situation, and how likely the dealer will be to offer you a discount if you stand your ground.

Be prepared to walk away.

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Tips on this task (3)

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The Bank Manager said

Don't forget that there are 0% dealer finance offers out there too.
I purchased my wife's car on a 36 month 0% dealer option and the Dealer Principle explained to me just how many purchasers chose not to take the offer, instead seeking to pay in full or financing elsewhere! How foolish....
Like him, I was amazed that they could turn aside such a 'free money' offer - and by free money, I mean not having the cost of paying any interest and earning interest instead, on the money - when buying the car.
The ONLY costs to me are the initial fee and the final administration fee - both of which I'm able to say I negotiated down to a more agreeable sum.

Report on 07 October 2009 | Love 0 love
1

tomscol said

I agree with The Bank Manager, there are some great finance deals out there at the moment and you should never turn down "free" money.
My latest car (a diesel, as I do 18000 mls a year) was bought under a VAT free scheme (the dealer discounts the VAT equivalent) and there was also the option of a 0% loan for half the value of the car.
Of course I still haggled hard for a range of extras and recon that was worth at least another £1000. I work on the principle that you don't get if you don't ask.
Having bought second hand cars both privately and from a dealer I believe there are pros and cons either way. If you are looking for a safe way to buy a car with aftersales support, then a dealer is probably for you (but expect to pay slightly more for the priviledge).
Confident buyers with a good knowledge of vehicles and cash in hand can achieve a good deal from a private sale but you must take basic precautions such as having the vehicle checked for outstanding finance or whether it has been previously written off in an accident (a HPI check should tell you this for about £20). Whichever way you go remember, if the deal doesn't look or sound right, walk away.


Report on 15 November 2009 | Love  0 love
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Alexsimples said

I used leasing finance because even paying an additional £5k over 4 years I can more than make this up on investments. In fact I had £24k in investments which cost me only £3k a year ago and will quadruple in value in the next 4 years
The VERY best deals are for Jaguar XJ Sovereign 3 litre diesels. Got a 3 year old model with 24,000 miles for £24,000, price new £66k plus. If you go for the old model when a new model is introduced you can always make a killing and there is no better car than this. Truly superb.
Forget about all these Audi, BMW and Mercedes owners who overpay for cars that are nowhere near as good. Buy the best BUY BRITISH.

Report on 06 June 2010 | Love 0 love

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