What do you want and how much do you want to pay?
You have the choice of
- Ordering a brand new car with the options and extras that you want
- Buying a pre-registered car from a dealers stock
- Buying a used car
If money is not a big concern and you want the extras of your choice included then
the best thing for you is going to be ordering a brand new car. The dealer will
note down the exact spec you require and then the order will go to the manufacturer
and your car will be built to order. On the plus side, you get everything you want
and a manufacturers warranty. On the downside, you will have to wait for some weeks
before you get your hands on the car.
Buying a pre-registered car from a dealers stock is your other route to a new car.
Dealers buy in volumes of cars from manufacturers in order to get volume discounts
and bonuses. These are cars that the dealer already has in their posession so you
can't choose the factory fitted extras. On the plus side, you should be able to
save quite a bit of money especially if the dealer is having trouble shifting stock
or the registration plate is due to change - in which case they'll be keen to sell
these vehicles on as the demand for them will drop.
Buying used is your alternative to a brand new car. The value of most cars drops
steeply in the first couple of years so you will not have to loose out due to depreciation.
You can shop around to find a car that has a spec to suit you and, with the number
of websites selling used cars, they are easy to acquire. Obviously, you cannot always
guarantee the condition of the car and should always get a mechanic to check a car
out before you buy it. Yuo should also pay a small fee to have an HPI check performed
to ensure there is no outstanding finance on the vehicle.
To buy or to lease?
Right, so you've chosen the car you want, now how are you going to get it? Well,
you have a number of options available to you.
- Buy outright for cash
- Get Finance
- Lease the car
We don't all have large amounts of cash hiding under our mattress but, if you do
then you buying for cash will be the cheapest option in the long run. If you don't
you could shop around for a bank loan or raid your savings to buy outright from
the car dealer.
If you want to spread the cost of your car over a few years then you could consider
car finance such as hire purchase (HP). This will allow you to buy the car by paying
fixed monthly payments for an agreed term. You can get HP finance on new or used
cars.
Finally, you could lease the car rather than buying it. You will never own the car
but simply borrow it on a long term basis. Once your leasing agreement ends, you
just give the car back and lease a new one. This means that you always have a fairly
new car and don't have the hassle of buying and selling.
Personal Contract Hire (PCH) is a leasing arrangement for private individuals.