Tips to Help You Save on Motoring Expenses
The prospect of owning a new car may send thrills up and down your spine, but the expenses you have to incur afterwards are not as thrilling. When you buy a brand new car, the value of the vehicle drops by about 20% as soon as you drive it off the lot.
If you were to change your mind the next day and decide to trade it in on another make or model, you will incur a substantial loss.
Buy Used Cars Instead of New
Buying second-hand vehicles is one way of cutting down on your motoring expenses. You will not only pay a cheaper price for a previously owned vehicle, but your purchase will retain its value. Plus, when you buy a new car, you immediately have to pay a VAT of 15%, which you don’t have to pay on a used vehicle.
You can get great deals in second hand cars in new models by checking with the dealerships. They do use some of the new cars as demonstrators and then sell them off as used cars. Thus you get a car with very low mileage that is almost new for a discounted price. Some cars that are used for test drives by potential buyers are sold as second hand cars as well as those that owners have traded in on new vehicles. Sometimes you can get a real bargain by shopping in this type of venue.
Never Pay the Asking Price
The list price is usually the suggested price of a vehicle whether you are buying a new of used car. One rule of thumb in getting the best bargain possible is to always try to negotiate a lower price.
According to Richard Headland, the motoring editor of Which? magazine, “Don’t ever pay the listed price. The biggest discounts tend to be on new cars because dealers are often subsidised by the manufacturers. You should get 10% plus off new cars and at least 5% off second-hand models.”
There are also certain times of the year when it is better to go shopping for a new vehicle. The months of December and January are ones in which you will get deep discounts from car dealerships because of the slow sales in these months. The end of the month is also a good time to look for a bargain as the dealerships and salespeople try to get their sales up for the month.
Another good time of the year to buy a vehicle is when the next year’s models come on the market because the dealerships are trying to clear out their inventory to make room for the newer models.
Ask for extras when you make a purchase of a new or used vehicle, especially if you are unable to get much of a reduction in the price. This is because car salespeople receive bonuses when they make sales and they will do what they can to make sure they get you as a customer.
Consider the Costs of Running the Car
Even though the price of the car may be a bargain, you do have to consider what it is going to cost you to keep it on the road. This includes such things as fuel consumption and the cost of replacing the tires. If you buy a used vehicle make sure you have it thoroughly inspected so that you won’t incur the cost of repairs just shortly after you take it home.
Financing Costs
The cost of financing a new or used car can be quite costly. Generally dealerships offer incentives to purchase new cars by offering 0% interest or low interest on the financing. The interest charges on used vehicles are usually a lot higher because there are no incentives for such sales. Before you make the final decision, get the total monthly payment of the vehicle to make sure that it fits within your budget.
Tags: motoring costs, save money, mileage, slow sales, car salespeople, time, test drives, great deals
