Motorbrowser.co.uk : Buying New Tips : BFG : Tax Free Car Sales

Setting out to buy a car can be a daunting prospect. There's a lot more to it than just picking a car and heading to your local dealer, cheque book in hand. You'll have homework to do first and big decisions to make every step of the way.

Decide what you want and how much you can afford
Motorbrowser.co.uk advertises many car dealerships and service providers so that you can browse through the various dealerships and service providers online, helping you make the best choice of vehicle, after researching the costs of insurance, finance, running cost i.e. servicing a fuel. If part exchanging check the value of any car you want to trade in at PARKERS, here you will find the prices for the car that you wish to buy and also your part exchange.

Choose a dealer
Things used to be so simple. If you were shopping for a new car, you went to your local dealer. Now, though, there are many choices. This variety works for the consumer. Wider choice means more competition and sharper prices. Check the company you're using is registered with COMPANIES HOUSE. If it is, you know that none of the bosses has been disqualified from acting as a company director. Ask to be put in touch with other satisfied customers, too.

If ordering a car through an intermediary, insist that all monies except the broker's fee are paid directly to the supplying dealer. That way, you should still get your car if the company goes out of business. Alternatively, an 'escrow' holding account can give peace of mind: a bank holds the funds safe until the car is ready for delivery. If the car is sourced in the UK there should be no question mark over spec, but it's worth checking upon delivery. When buying an import from a foreign dealer, confirm that the car you order is to UK spec and have this confirmed in writing. Any missing equipment will hurt your car's resale value.

The test drive
You're the one who has to live with your car, which is why a thorough test drive is vital. You wouldn't buy a house without having a thorough search done, so why buy a car without an extended test drive? You need to be sure it's just what you want, especially if you plan to keep it for a few years.

What does your car have to do? Start by considering what the car is going to do. If it's the family's only transport, take them all along when you try the car, to ensure everyone is comfortable. Try to work out whether it will continue to be large enough throughout your period of ownership.

Sitting comfortably? Spend time getting comfortable, to check whether the driving position, visibility and ergonomics are to your liking - and ensure anyone else who is going to drive it feels the same. Does it have all the features you expect? Is the boot big enough? If you are likely to fold or remove the seats, can this be done easily? Can you stash the shopping without bits of it rolling around? Find these things out now - not when it's too late.

Take at least an hour. The test drive needs to be at least an hour, on a variety of roads - and make sure all drivers get a good turn behind the wheel. Ask if the dealership will offer you a 24-hour or weekend test. Some of them will deliver a test car to your home.

Make sure you insist on motorway miles. If you do lots of motorway miles, include some on your test. Try the engine at all revs. Feel how smooth it is, how well it pulls and whether it gets noisy. Take note of tyre roar and wind noise, too.

Those driving details. Is the gearshift to your liking? Is the steering too heavy or too light? Are you happy with the way the car handles bumps? Does it respond to the accelerator quickly and progressively or are there jerks? Can you see out as well as you'd like and reach all the controls? Don't worry if the car's switchgear is unfamiliar, but if it irritates you it will probably continue to do so.

Stay focused. Don't let the salesperson's patter distract you. Ask to be allowed to concentrate on the drive and discuss the car later. If you conduct your drive systematically and thoroughly, you'll know if the car is right for you.

Haggle like a professional
You've seen a car, test driven it, and now it's time to talk money. Don't start mumbling and shuffling your feet, because the aces are all in your hands.

Don't pay the list price for a new car. With the exception of a few prestige models and fashionable sports cars, the list price is a starting point for negotiations.

The thought of haggling brings some car buyers out in a cold sweat, but don't be intimidated. Dealers expect you to ask for a discount, and most will be ready to give a reasonable saving long before you resort to the thumbscrews. Remember, the salesman wants your business at least as much as you want that shiny new car. It's your money, so you're in charge.

Do your homework. Even if you have decided that a dealer will get your cash, make sure you check out the prices available from other sources. Take the best quotes you can find with you. If the dealer knows you can buy the same car for £2000 less online, he or she will be more likely to cut you a deal.

Don't be intimidated. Sales staff cut deals for their living and have a number of tactics to sell you a car at a price that best suits them. Know the games that are likely to be played before you even set foot in the showroom, and you'll be a step ahead.

Ever heard the 'I can give you a special price but only if you buy today' line? Don't believe it. The deal that's on the table tomorrow will probably be just as good, or better. Remember, too, that you are legally committed to buy once you've signed the order form.

Be wary of sales staff who tell you they need to ask their manager before giving you a discount. It might look as if they're working terribly hard on your behalf, but this can just be a ruse to stall your haggling. Ask politely to speak to a decision-maker.

Dealers may be keen to shift their stock - don't accept a car which isn't the colour and specification you want. On the other hand, if the stock car suits your needs, use the situation to your advantage and press for a further saving.

Watch the cost to change. Some dealers give what appears to be a big discount only to undervalue the trade-in. Don't be duped. Equally, if a dealer thinks you're more interested in a good price for your old car rather than a discount on the new one, they might overvalue the part-ex and use this to resist haggling. Either way, it's the cost to change - the difference between the price of the new car and the value of your trade-in - which is what you'll have to pay. Focus on keeping this to a minimum rather than just chipping away at the asking price.

Don't forget depreciation. A huge saving on the list price looks great, but you should approach hugely discounted cars with care. Depreciation is the main reason. This is the loss in value all models suffer as they get older. Big discounts are often a sign that cars plummet in value as soon as they leave the forecourt. Huge discounts can also be a sign of a model about to be replaced. If it is, don't necessarily dismiss it. You can use that knowledge to press even harder for a discount.

Don't give up a discount for a special offer. Finance or insurance deals will always tempt buyers into the showroom. Some dealers then use such deals to resist giving a discount, saying that the special deal has eaten into their margin for negotiation. Sounds reasonable - but in most cases these special offers are paid for by the manufacturer, not the dealer. If in doubt, check with a UK broker or an internet retailer. Should they be offering a big discount as well as a deal on finance or insurance, then don't be fobbed off with excuses about having no profit left to discount. Combining a healthy saving over the list price with a 0% finance package, for example, is one of the surest ways to a top deal.

Take time to shop around. It may be that in spite of your research and best efforts, the salesman doesn't deliver the saving you want. Don't panic. There are plenty of other places to buy. You can contact another dealer in your area. Play one dealer off against the other. Or if you don't have the time to do that, there are plenty of brokers and internet retailers ready and waiting to beat the list price for you.

Save on your finance
If you've got a bargain price, don't blow the savings on the finance. We explain the options buying a car is one thing, running it quite another.

Paying back the money borrowed and insuring the vehicle will eat into your bank balance, so it pays to shop around just as carefully as for the car itself. Before you compare monthly repayments or annual premiums, you need to know the products.

How do I spot a good deal? Once you know the type of loan that will suit you, you're in a position to start comparing the deals from different providers.

Whether you're talking to a dealer or bank, make sure it quotes the annual percentage rate (APR). Some salesmen will quote the 'flat' rate, which is typically around half the APR. Don't be tricked into comparing this with APRs from other lenders.

Once you know the APR, you're in a position to make an at-a-glance comparison, but the surest way to decide which loan will be cheapest is to look at the total repayable over the lifetime of the loan. Compare like with like, too. Has accident, sickness and redundancy cover been included in both quotes?

You may be offered GAP insurance - Guaranteed Asset Protection. If your car is stolen or written off, this will cover any shortfall between the insurance pay-out and the finance owed. It's worth considering, but check the terms of your insurance to avoid paying twice for similar protection.

What if I'm turned down? Don't be surprised if a lender turns you down, especially if their rate is keen. The cheapest lenders can be choosy. However, if several providers give you the cold shoulder, stop applying and find out why. It could be that your name doesn't appear on the electoral register. Should that not solve the problem, contact the main credit reference companies, Experian and Equifax, and ask for a copy of your file. For a few pounds they'll put your details in the post. Challenge incorrect details - the credit reference companies should be able to advise you how.

Even if you've bad debts or county court judgements against your name, there are firms that promise to lend you money. However, their rates are expensive and should be looked upon as a last resort.

Clean up your part exchange
Follow these steps and you'll add £££s to your trade-in.

1 Give it a clean
It's amazing what a wash and brush up can do to a car's value. If it looks well cared for it will convince a buyer that it needs minimal work to sell on. All we're talking is a run through a car wash and a vacuum. Don't overdo it, or people will think you've something to hide.

2 Bodywork
On new and prestige cars it's worth repairing small dings and scratches because you'll get the money back. On older cars knocks are expected, so getting rid of them won't be worthwhile.

3 Papers
Get all the papers together in one place. These will help a buyer establish a car's history.

4 Know the value
Don't sell yourself short by not knowing a ballpark figure for your trade-in. Get up-to-date prices from PARKERS. Take into account the mileage and options such as metallic paint and an automatic gearbox.

5 Make sure it's a bona fide buyer
Do you know who you're dealing with? Franchises and reputable independents should be fine. Other traders and private buyers need slightly more care. Only part with your car for cash (count and check for forged notes) or a banker's draft.

Where to sell your car
When it comes to getting rid of your car, there are plenty of options.

When you're looking to buy a new car, you're faced with choices every step of the way. And nowhere is that more true than when you're selling your old car.

Selling privately can make you the most money - with nobody in the middle taking a cut, you can get the true market value. However, this could delay getting your new car and showing prospective buyers your old one can be time consuming.

Part-exchanging will make buying a new car a speedier process. However, a dealership might not be as generous as a private buyer since it will need to sell the car on to make a profit. You might consider selling to a dealer even if you're not buying a new car, but there'll be no incentive for the salesman to keep you sweet with a generous offer.

Auctions are another option. You won't have strangers coming to your home and the auction house will be responsible for collecting the buyer's cash. But there is a catch - how much you make on the car depends entirely on the bidders.

Know your rights
If you are unhappy with your new car, act quickly and the legal system will be on your side.

Where do I stand if things go wrong? Your purchase is protected under the 1979 Sale of Goods Act. If you don't feel the car is up to scratch, you are more likely to succeed in court if you reject the car within a couple of weeks.

Before you get lawyers involved, send off a letter to the company you bought the car from, stating your reasons for rejecting it and giving a seven-day deadline for a response. If the car's on HP or a PCP, let the finance house know.

Are my rights stronger if I deal face to face? Your rights are actually stronger if you buy over the phone or internet. Since autumn 2000, buyers have had the right to cancel a contract up to seven days after taking delivery in most sales done online or by phone or fax. The cost of returning the car would be down to you. However, if you visit the firm during the purchase, the law is vague as to whether these rights apply.

Mastering trade speak
Whether you're looking at the latest technology or the minutiae of a finance agreement, don't let jargon come between you and the right deal. Here, we'll explain some of the most important terms you may come across when you're buying a new car.

ABS (anti-lock brakes)
Helps you stop the car quickly without locking the brakes. It also allows you to steer while braking hard.

Climate control
Automatic air-conditioning system which allows occupants to set an exact temperature and direct ventilation.

Common-rail diesel
A single, high-pressure pipe supplies diesel to the engine. Metering the fuel under high pressure means the motor runs more efficiently.

CVT 'automatic'
Continuously Variable Transmissions feature two cone-shaped pulleys with a steel belt between them. The pulleys alter to achieve an infinite number of 'gears'.

Direct injection
Fuel is squirted directly into the cylinder under extremely high pressure so it atomises and burns much more efficiently.

EBFD
Electronic Brake Force Distribution apportions the stopping effort of the brakes equally between the wheels, to keep the car stable.

Sequential manual 'box
A manual gearbox with a lever which moves forwards and backwards rather than in an H pattern, and goes up and down the gears in sequence. Some can also be operated by controls on the steering wheel.

Side airbags
These are mounted in the side of the seat. There are different types available which protect the head and/or chest in a side impact. Normally offered for front seats only.

Stability control (ESP or DSC)
These systems stop skids in corners by detecting slippage at any wheel and applying the brakes at the other end of the car, cutting engine power - or both.

Turbo/supercharger
This increases the flow of air into the engine to improve its performance. Turbos are driven by the engine's exhaust gases, superchargers are powered by a belt from the motor. Both are sometimes used in tandem with intercoolers, which chill the air to boost power further.

Variable valve timing
Valves let air and fuel in and waste out of the engine. Most cars' timing is fixed; VVT varies the point at which the valves open, for improved efficiency.

APR
Short for annual percentage rate. The lower the APR, the more attractive the loan. When comparing loans, insist on knowing the APR.

Cost to change
The difference between the price of the new car and the value of your trade-in. This is how much a new car is really going to cost you.

Ex-demo
Cars registered by the dealer to use on customer test drives end up for sale as 'ex-demo' cars. These are usually low in mileage and can be bargain alternatives to a new car.

Flat rate
The interest payable on a loan per year as a percentage of the amount borrowed. Sales people love to quote the flat rate rather than the APR because the interest appears lower - unlike the APR, the flat rate doesn't't include interest and charges. Don't make the mistake of comparing flat rates with APRs.

Mats and flaps
Floor mats and mud flaps. Salesmen will often throw these in to sweeten the deal. Fine, but don't accept a mud flap instead of a discount.

TBA
To be arranged. If the sales person enters this in the order form's section on delivery dates, there'll be little you can do if delivery is delayed.

UK-spec
Imported cars which match the equipment levels of cars sold through UK franchised dealers are described as UK-spec. It's important for an import's resale value that it is to UK specification or higher. If, say, an alarm is fitted to UK cars but not to your import, this could put up your insurance. Cars described as UK-sourced will have come via a UK dealer.