Five ways to save money when purchasing a new car

For many people, a car is one of the most expensive purchases we’ll ever make, so we all want to get the best bang for our buck and ensure we snap up a bargain. The thought of visiting a dealer can send some of us into a cold sweat, but many dealerships today relax their hard sale techniques for a more welcoming, friendly customer approach. There are a few simple ways to save on those extra costs when you’re purchasing your next car, leaving you with some extra money to put away for a rainy day.

1. Know your budget – and keep it close to your chest

When you buy a new car, the ticket price often doesn’t take into account extras, like extended warranties, VAT, delivery charges, and registration. Come up with a maximum price, and make sure you keep that secret locked away only for yourself. If a salesperson asks you what your budget is, then give a figure that’s lower than your maximum. Chances are the salesperson will show you something at the very upper end of that figure or even slightly beyond it, so it’s good to leave yourself a buffer.

2. Consider a previous model

When you show up to the dealership, you might lay eyes on a shiny new model, but there’s a good chance it’s almost exactly the same as the previous model year. Most car manufacturers only give their major vehicle models a restyling every 4-5 years, and in other years, the only difference will be minor engine upgrades and perhaps a new colour. You can purchase year-old models of current cars for thousands of dollars less, and have virtually the same car.

3. Look out for ex-demonstrator models

Most dealerships will have several cars in their stock that are former demonstrator models – the cars that were test-driven by prospective customers and are unable to be sold as brand-new. For example, Eastern BMW Edinburgh has a wide selection of discounted ex-demonstrator BMW models at with a two-year minimum warranty and free servicing. This is a great way to get your dream car for a bargain with the added piece of mind of a vehicle guarantee.

4. Do your research

If you’re torn between several different models, then it’s time to hit the internet. Compare professional reviews which note the technical pros and cons of each car with real-life customer ratings. Work out how much it will cost to run your car when you include the costs of tax, fuel, servicing and insurance to compare the total vehicle cost over a five-year period. It’s important to get the complete picture of a vehicle you’re set on, so be sure to look up anything you’re uncertain about.

5. Get in at the right time

Another way to save is to buy at the end of the model year. These usually run between August and October. At this time, dealers will be trying to shift as much stock as they can, so they’ll be more willing to negotiate on price, meaning you could cut yourself a better deal on your dream set of wheels.