Buying A New Car In The UK – How To Get A Deal
Buying a brand-new car in the UK used to be a straight-forward affair with the only option available being a trip to the local main dealer. Whilst buying from a main dealer did and still does give piece of mind, it meant that there were very few options for the consumer and ‘shopping around’ was very limited.
15-20 years ago, the concept of a new car broker or buying a new car online was completely alien to the UK public but around the early 2000’s there was emergence of online companies beginning to offer new cars for sale online at discounted prices.
As you might expect and rightly so, any member of the public is going to be very cautious about handing over a larger sum of money to a relatively unknown company with promise of a new vehicle sometime in the future. So, let’s look at how some of these online new car retailers work and the pros and cons.
New Car Importers
This is one of the biggest misconceptions about online new car retailers, would-be buyers often assume that new vehicles sold online are imports.
Whilst there are companies selling imported new vehicles, many of the companies selling new cars online are not actually importers.
Some of the benefits and reasons to buy an imported car and you can get a unique spec not available in the UK and sometimes it can be cheaper.
The big downside to buying an import can be cost of repairs, parts may be different to the UK equivalent and therefore may be more difficult to acquire, so this should be a consideration.
Finally, what kind of warranty you get with an imported car can be a stumbling block, so you’ll need research this thoroughly, obviously you won’t be getting a standard manufacturer’s warranty that you get when buying from a UK main dealer sourced vehicle, so be sure you research and get assurances.
New Car Brokers and Retailers
Many smaller companies or individuals are working on a broker basis in the UK, these companies have a network of dealers and suppliers, will negotiate deals and you are taking advantage of their network. The broker will take a commission directly from the car dealer usually and in return you will have the benefit of them searching the market for the best deal for you.
Sometimes the broker will hand you off the dealer once the deal has been agreed, all you really need to know at this point is that the car is UK main dealer sourced and you will get a full warranty.
Many of the online discount new car retailers have been around for over a decade now like Broadspeed and New Car Discount, whilst newer players in the market are companies like CarWow.
One of the significant players in the market for over 15 years now is UK Car Discount, who like most other discount new car dealers offer main dealer supplied new vehicles with full manufactures warranty. UK Car Discount’s USP is they do NOT take payment from the customer until after delivery of the vehicle, they also offer free delivery to most parts of the mainland UK.
New Car Contract Hire Deals
If the outlay of an outright purchase if beyond your means, there are other ways to get your hands on a new vehicle. Contract hire deals are very popular, this involves, and initial lump sum followed by monthly rental payments. The term is usually 1 -5 years, with 3-year terms the most popular.
The downside to contract hire agreements is you will hand over a lot of money and at the end of the term you will hand back the vehicle and having nothing to show for it.
The upside to contract hire is you can secure a new vehicle for a relatively low lump sum up front and at the end of the term, some companies will give you first refusal on buying the car at a reduced rate.
You can get some fantastic contract hire deals if you shop around. If for example a car manufacturer has a large stock pile of a particular model they may offer enticing contract hire deals to recoup some money rather than just having the vehicles sat in a warehouse losing value.