2008
The cost of new cars means that, after buying a house, a new car is likely to be the most expensive item on our shopping list.
Many people prefer buying new to buying second hand for the extra security provided by the manufacturer's warranty and the knowledge that there has been no previous owner who may have driven the car badly or neglected it in some way.
David Sayer, Head of Governance for Consumer Direct North East and Trading Standards Manager for Redcar and Cleveland Borough Council said: “The golden rule for any purchase becomes even more important when you are aiming to buy a high value item like a car and you should shop around, comparing the price and any additional benefits between dealers.”
Mr Sayer added “You should also, if you can, look at prices online. Any prices you see advertised should be the 'On the road' price and should include the cost of delivery to the dealer, any pre-sale inspection and number plates.”
If you are buying a new car it is likely that you will be buying it on credit. Take the details of any credit deal away with you and work out if your monthly budget can accommodate the extra payments. You need to consider the size of the deposit, the monthly payments, the total amount you will pay and the APR, which is the interest rate. Credit is like any other service and you should always shop around for the best deals. It may be that you can find cheaper credit from a source other than the garage.
When you take possession of your new car it should be of satisfactory quality and free from any minor defects; it should be fit for any purpose you made known to the dealer, so if specified to the trader before sale that you wanted it for towing a caravan, for example, it should be capable of doing that, and it should not have been mis-described in any way. Additionally, if you buy online you may have a right to cancel the contract, return the car and receive a full refund if you change your mind.
Consumer Direct North East has put together top ten tips to buying your new car smoothly:
1. Before you buy, decide how much you can afford. Include the cost of insurance, road tax, petrol, repairs and servicing. If you’re taking out a loan, add up the repayments.
2. Look at car magazines and price guides to see what is available for the price you want to pay and check the value of any car you want to trade-in.
3. Shop around. Visit a number of different dealers to see what they have in your price range.
4. Buy from reputable dealers. Look for a trade association sign – this should mean the dealer follows a code of practice such as the Code of Practice for the Motor Industry. The Retail Motor Industry Federation can give you a list of dealers that are trade association members.
5. Take advantage of free test-drives so that you can check for comfort, visibility and road handling.
6. Don’t be afraid to haggle. Discounts are often available but it’s up to you to get the price down as much as you can. Buying at a discount will not affect your legal rights.
7. Make sure you’re being quoted on the on-the-road price, which includes VAT, number plates, delivery charges and road tax.
8. New cars should come with full warranties, typically for three years. Make sure you check the terms of the warranty to see what it does and does not cover.
9. Before you commit to buying the car, make sure you understand fully the conditions of sale and any finance agreement, including deposit terms and interest charges.
10. Be cautious when buying a car abroad. Your purchase will be covered by the rules of that country and if something goes wrong with the vehicle would you easily be able to go back to the seller for redress? You may not have the same claim against the manufacturer’s warranty as you would if you bought in the UK.
If you have any problems with your new car or the service you receive from the dealer, call Consumer Direct on 08454 04 05 06.
