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Marc Lockley is the Negotiator. He reckons there's never been a better time to get a great deal on wheels
When I negotiated more than £4,000 off my modest family car in March last year, I felt pretty proud of myself. Now, though, I almost wish I had held off, as this is an even better time to buy a new car.
Showrooms are heaving with unsold vehicles and there are more at the plants gathering dust. Prices are already lower than normal as dealers offer good reductions to try to clear their stock. But there are even greater savings to be made if you put your negotiating skills into practice.
Become an expert
Plenty of people have an innate fear of going to a car salesroom. They worry that a slick salesman will reduce them to a cowering wreck, crushing any plans of playing tough and bringing down the price. But to tweak a quote by Eleanor Roosevelt: "No one can make you feel ripped off without your consent."
Like exams, when it comes to negotiating, failure to prepare is preparation for failure. In fact, getting a great deal on a car involves 90% preparation and 10% negotiation. You need to become an expert in what you plan to buy and what you are happy to pay. Knowing your stuff is vital. It increases your confidence as you realise that the advertised price is merely the starting point. And two hours preparation could save you £5,000 on the asking price of a family car. That's the equivalent to be being paid £2,500 an hour!
Get your timing right
A great time to buy a car is at the end of a month, but an even better time is at the end of a quarter as this is when dealerships are under the most pressure to sell their cars. The end of this quarter is 31 March, so now is the time to start your preparations.
Know what you want
Decide what's important to you and make a list of the features you need and those you would like, It could look something like this:
Must-haves:
• 5 doors
• Large boot
• 1.6 litre engine
Nice-to-haves:
• Metallic paint
• MP3 player input
• Full tank of fuel
If you are not sure which model you want, take a look at a website such as Whatcar.com to help you decide. Make a shortlist of the cars you like best.
Get quotes
Some 84% of respondents to a Which? Money survey bought a car from a dealer, even though buying through an online broker might have been cheaper. Whether you buy online or from a showroom, make sure you do the research that shows you the best prices available for your top two choices.
Look at websites such as CarPriceChecker and BroadSpeed.com, which let you check the list price and the online broker's price.
Use a search engine to identify dealers near you and further away, and find the best price on offer. The dealer might be 250 miles away, but that's fine; you are just searching for the best price at this stage. Make sure you are comparing like with like. Once you have found the right car and have a good idea of the price, write down two prices: your ideal price, the lowest one that gives you a great deal with your added extras; and a walk-away rate, a top figure which should be your limit. If you don't achieve a price below this you will go to another dealer.
Support your local dealer
Armed with this information, head for a local dealer to test drive the car you want. Make an effort to be friendly towards the salesperson as this often helps to get a better deal. Let the salesperson know, that although you are interested, you are considering your options. Drop in positive information about a competitor's deal.
Ask the dealer for their best price and what that includes. Check with them your options: will it be better for you to buy the car outright or under their financial scheme? This may also change as you negotiate a better price.
If you decide to take the financial package, work out how much you will pay as a total, as this can sometimes be a lot higher than you think.
Bargain hard
Tell the dealer that for a matter of either a £20 train fare or purchasing the car over the internet, you can get the car much cheaper elsewhere (quote them the price you found in your research). However, say you would prefer to support local business, and if they are prepared to sell you the car for the price you want, and include a full tank of petrol and mats (or other nice-to-haves you have listed), then you'd be happy to give them your business.
Consider almost new
Pre-registered or ex-demonstration cars are often available and can be considerably cheaper than brand new cars, and may only have a few miles on the clock. Negotiation still applies!
Used cars
Similar tips apply to used cars, however if you do want a bargain, but fear buying a car on the verge of breakdown, either take a friendly mechanic with you, or hire one for an hour to give the car a once over. Try asking the dealer to pay for an AA car check for you – it might be prepared to meet the cost in order to secure the sale.
Money-saving tip: If you rarely use a car, but need the occasional use of one, perhaps you should consider a car club.
Also, if you have a car that is more than nine years old, it may pay you to wait until the end of April. The government is apparently in talks about a scheme that may give up to a £2,000 discount on a new or one-year-old car.
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