You don't have to pay the List Price for your new car (General Comments / Tips Concerning Your Car)

Name: cmh4135

Hello doyoo user, You have to be logged in to use these functions... Login or register Close window

Send message to member

Product:	General Comments / Tips Concerning Your Car
Date:	11/01/02 (94 review reads)
Rating:

Advantages: You get a better deal

Disadvantages: It takes time to shop around

Car prices have been in the headlines a lot over the last year again, particularly when dealers were bracing themselves for a predicted onslaught of customers wanting the new registration format in September 2001.

We are constantly being told that we are paying through the nose for new cars in this country whilst the rest of Europe drive around in identical vehicles for less money. Looking at the economics of the situation we should be paying more for our vehicles as we are an island nation and transportation costs need to be factored into the equation. But hang on... lots of cars are, or used to be, made here and we ship them out.

Then there are the cries of "it is just the Government benefiting from the taxes raised through new car sales". True, our taxes are high but they are not the highest it Europe. I am a firm believer that despite some obvious benefits of tax harmonisation throughout Europe it is not something we should consider. Each state should be free (as it is) to dictate its own fiscal policy without interference from Big Brother Europe. Indeed, the main reason why I am so opposed to European integration is the fact that, as an island nation we will always be on the fringes of a united Europe geographically and nothing will ever change this. This geographical limitation will have a knock on effect on pricing and freedom of movement to and from the UK as additional costs need to be factored in.

But, back to cars....

We can all carry on whinging about the prices that we are being made to pay but it doesn't stop us buying. The car is moving away from being a luxury item to a necessity. Remember though, there are ways you can save money on a new purchase...

BUY ABROAD

If you are prepared for a little bit of hassle then you can buy your car abroad at European prices. You can either buy direct from the country of your choice (usually France or Germany due to the ease of transportation
of the car back from these countries) or you can go through a broker but remember that they will take a cut. Don't forget to that you will have to consider the cost of getting a car back to the UK and any customs duties that may become payable depending upon your circumstances.

European manufacturers are obliged to offer the cars as left and right hand drive and so there will be no problems there although you may find a reluctance from some dealers to offer the UK models as they want to maintain the high UK prices.

BUY ONLINE

Online merchants have been steadily chipping away at the prices of cars in the UK. Big names such as jamjar.com can offer substantial savings. smaller dealers too may come up trumps. There are problems with buying online however. You still need to go to a real dealership to test drive the vehicle. Stories of excessive delay in delivery abound. Further, you may well find that there are a limited number of models and colours that are available. Online dealerships may source their cars from a number of places but commonly one would expect imports and over-runs to feature highly. It is interesting to see on Jamjar that there are a number of cars where the savings are minimal (£75 for example) as the company are having to source the cars as new orders whereas others you can save over £1,000 on (for a similar priced car).

SHOP AROUND

I ordered a new car last September and I wished to avoid the hassle of the above methods of "saving" money. As with all major purchases there is a margin on the car and you can use this profit margin to negotiate with a dealer. When I went to enquire about a car at the local dealership I was told that as it was a new version car there was only about £30 margin on the car and so basically it was list price or not at all.

Not being one to take no for an answer I set out to see if I could better the price. I did, at another main dealership they offere
d me £500 off (or thereabouts). Now this dealership was further from home and did not offer the same service package and so I was reluctant to go for it although the price was extremely good (and beat all of the online deals I had found for the car). I therefore went back to the local dealer and said that I had found the car at the discounted price would they match it? After a bit of thought they agreed, threw in some mats and a free first service. Deal. Then all I had to decide on was colour.....Both of us were happy, I had a car, they had an order albeit with a reduced margin, but a happy customer.


CLAIRE'S BOTTOM TEN TIPS when buying a car

1 - Do test drive the car first and try to compare it with other cars in the class.

2 - Don't be stung by attractive packages that are no more than sales bluster.

3 - Watch for the hidden costs, customs duties, road tax and registration fees.

4 - Shop around for the most attractive deals and don't be afraid to play one dealer off against another. They know how much your custom is worth and won't go below what they think is acceptable.

5 - Research your chosen model on the net and in specialist magazines. What is the verdict?

6 - Consider things such as servicing costs - it will always cost more to service a Merc than it will a Ford.

7 - Consider parts availability - that new Czech car is all well and good but where can you buy spares?

8 - Metallic paint is often the only extra worth having - it adds greatly to the resale value of the car.

9 - Consider financing and insurance options carefully - is it the cheapest and most convenient way?

10 - Enjoy your new car and drive it safely!

Summary: