There isn’t a universal rule when it comes to saving money on a new car, but when you have the option to pay cash or opt down the finance route with a PCP or PCH scheme, one of these remains incredibly popular.
PCPs seem to work with most customers due to the lower monthly payments. This is because you are only financing a proportion of the car’s list price, which can also result in you being able to afford a car that may otherwise be out of a cash buyer’s budget.
You generally pay a deposit and then follow with a set number of monthly payments. Increasing the initial amount can reduce the subsequent monthly payments, too, so it’s worth calculating which suits your budget best.
While PCP allows you to return or trade-in the car at the end of the agreement, Personal Contract Hire appeals to those who want to own the car after all the payments have been made.
Those looking to make a cash purchase may be able to secure a discount if they are looking at a car available on 0% finance, as dealerships have incentives for promoting these as well.
The days of walking into a dealership and asking for a certain figure or percentage off the advertised price has been diminishing. With the rise in PCPs, customers tend to think more in terms of their monthly spending instead, although you may find a discount on optional extras.
Buying from stock rather than ordering from the factory is a possible way of saving money, as the sale of a car can happen sooner and help the showroom reach their target within their timeframe. That said, if the cars in stock don’t suit your requirements, it may not be worth the compromise just to save a little cash.
When it comes to timing, there isn’t a guaranteed best time to buy. This all comes down to chance – you may catch the showroom at the right time when your sale counts, or they may have met their targets already and show little incentive.
The best advice is to take your time and not to rush through the whole process. If a sales executive can build a rapport with you, the easier it can be for them to try and secure a deal with you.
If you are looking to part-exchange a vehicle, it’s worth getting it valued so you know what it’s worth in comparison to the trade-in offer. If you struggle to get a discount on your new car, you may be able to negate the price with a higher trade-in value instead. You can use online tools that calculate this based on your vehicle’s age and mileage.
Find out: What’s my car worth?
If you find the trade-in value to be too low compared to the valuation, however, consider selling it privately as you can get more for your car. It’s worth bearing in mind that you’ll need the space to keep it until it sells, as well as dealing with people phoning, viewing, and bartering down your own asking price.