If you treated a new car purely as an investment, it would probably be one of the worst you will ever make! New cars depreciate in value rapidly from the minute you buy them. The value of the car could be as much as 30-40% less than the value of the car when you buy it.

Benefits and Drawbacks

However, if you can afford the immediate loss in value, new cars do have their benefits – you can order the exact car you want, from a coat of bright yellow paint to sports seats and an MP3 player.

Plus you’ll usually get at least a three year warranty just in case anything goes wrong. Some companies are so desperate for your business they’ll give you seven years’ cover! Be aware - these warranties do not include parts which wear out through normal use, such as brake pads and tyres.

You will also find that there are many deals on new cars which offer interest-free credit, which means you won’t pay any extra for the convenience of spreading the cost over several years.

Many people look forward to the one day in their life where they can take delivery of their own brand-new car, made to their own order. So if you can afford to get yourself a car that hasn’t been used by anyone else, why not give yourself a treat?

Finding the Best Price

In today’s marketplace, new car prices are negotiable. So you might be able to do a good deal with a dealer. Don’t be afraid to ‘haggle’ with the dealer, which means to talk the salesman into giving you a lower price. Discounts of 5-10% off list price are commonplace. This can really be worth having on a car that costs £20,000!

Try the internet for new car price guides to find the amount you can to get discounted from the list price of new cars. Once you know this ideal price, you are in a good position to negotiate.

But with so many cars to choose from, what car are you going to buy? Buying a new car is a big commitment, so you shouldn’t rush into a decision to buy the first thing you see.  

Take your time and read motor magazines, visit motoring websites, have a look at and test-drive as many cars as you can. Remember, you are the buyer and as such are the one with the power. So don’t be pushed into buying a car you are not sure about by a very persuasive salesperson. Have a look in our "Find a..." section first. 

Media

You will find that the magazines and websites have offer a huge amount of information, including reviews on vehicles which cover all the different aspects of a car’s performance – from speed and handling, to how much space there is in the boot. So you just need to decide what your needs are first, and then find the car that fulfils them.

Even if you decide you don’t need a car with lots of space in the back, and you can afford something sporty, remember that in the UK, fuel costs are high and something with a big, thirsty engine will prove very expensive to run every day.

So, having decided on whether you need a two-seater soft-top, or a family estate car, you just need to get down to your nearest dealer - or do you?

Buying from a dealer is still the simplest option – there are main dealers for many of the main car brands in nearly every city, so you shouldn’t have to go far to find your local showroom and start negotiating with the sales staff.  Remember – once you have decided on the car you want, don’t be persuaded into a different one. Sales staff earn a bonus, often with each sale they make. They may have to sell a particular model to fulfil a target in order to earn their bonus. And if they need to sell a 1.6 litre engine and you have decided you want a 2.0 litre engine, you should give yourself some time to think about whether you are prepared to make the compromise.

Other ways of Buying

But now in the UK we are becoming more comfortable buying over the internet from the comfort of our armchairs, and ordering your new car online is no different. You can log onto a popular, trusted website and have your order finished in minutes! Here, you can pay cash, or split the cost with a finance plan just the same as if you were at the garage and you could save much more than you would if you go to the local dealer. Start looking in our "Find a..." section now.

They also offer the option of contract hire. This means you rent the car over a certain period, for example three years, at a rate which would be lower than you would pay each month to buy the car. But at the end of the three years you have to give the car back. Many business users go for this option as there is no problem with selling the car when the period is over, and there are no issues of depreciation. You could also go for contract hire purchase which means you have the option to buy the car at the end of the period. That will depend on whether or not you have become so attached to the car or feel like having a brand new car again!

By Matt Taylor

USEFUL WORDS

brand new = completely new, not used or owned by anyone else before

pre-registered model = a new car which has not yet been registered

car dealer / dealership = a company or person whose business is selling a particular product

car broker = a company or person who sells cars for other people

franchise = a company who sells other people’s goods or services

showroom = a place where cars or other goods are displayed for customers to view them

test drive = you try driving a car you are thinking of buying so that you can see how well it works and if you like it

warranty / guarantee = a written agreement in which a company selling something promises to repair or replace it if there is a problem within a particular period

GRAMMAR SPOT

Question word + to-infinitive

Use a question word before a to-infinitive:

I just don’t know which car to buy (= which I should buy)

We weren’t sure how much to pay for our car (= how much we should pay)

He didn’t know where to find the dealership (= where he could find it)

Can you give me any tips on what to look for in a new car? (= what I should look for)

Also use a to-infinitive after whether:

I was wondering whether to buy a new or used car

We’ll have to decide whether to go to a broker or go for a private sale

Afterwhat, which, whose, how many, and how much, use a noun:

I didn’t know which model to choose

You need to consider how many doors the car has