This is our easy guide of five things you need to know when buying a new car
Follow our guide to getting the most oomph from your new-car purchase. Plus, see our guide to different car financing options
BUYING a new car can be daunting so stick to our five-point plan.
- Take your time. Don't be railroaded by pushy salesmen and always look at the rival manufacturers to the car you're considering.
- Come up with your budget and stick to it. Don't be tempted to break it with optional extras - it will come back to bite you.
- A test drive is crucial. Every car is different - you may like the way it looks, but hate the way it drives.
- Ask about warranties and maintenance costs. A car which is expensive to service can bleed you dry.
- Check how prone to depreciation a car is. Most people change cars every few years and you want to get the most for your second-hand motor when it's time to upgrade.
Don't forget.. you can now search for New Cars for sale on Sun Motors and easily compare different makes and models.
WHICH PAYMENT PACKAGE?
IT is easy to get confused over which payment package is best. Should you go for finance, hire purchase or buying it outright? There will be one which suits you better than the others. Here we explain the difference, so you are not blindsided when you get to the forecourt.
HIRE PURCHASE (HP)
This plan will take an initial deposit - as much as you can afford - then you pay the entire value of the car off in monthly instalments. The more your deposit, the lower the instalments. It's good for those who want to own their car, but the monthly payments are usually higher than other payment options. You can't sell the car until the finance is fully paid off.
PERSONAL CONTRACT HIRE (PCH)
Monthly payments which are effectively leasing the car. The car is never yours to own and at the end of the plan it goes back to the dealer.
This is possibly the most hassle-free option, as you don't need to worry about warranties. But there will almost certainly be a yearly mileage limit, which is something to bear in mind. Not good if you want to do big mileage.
PERSONAL CONTRACT PURCHASE (PCP)
Like HP, this scheme takes a deposit and works out monthly repayments. But instead of paying off the value of the car, you're only paying off how much it depreciates in value. You have three options at the end: You can either pay a lump sum at the end, called a balloon payment, which will buy the car outright, hand it back to the dealer, or trade it in for a new car. This plan has the most flexibility, but beware of the balloon payment - you'll probably need to save up during the plan to afford it.
New car... Follow five simple steps to make sure you get the best dealPricey... New cars can bleed you dry if you're not careful