Proton has introduced a range of GEN-2 Special Edition vehicles, available with a host of extras as standard, plus great finance deals and an extended warranty.
Until 30th June 2009, customers opting for any GEN-2 SE model will benefit from a 5 year warranty and FREE metallic paint. Choose either of the hatchback SE models to get a FREE 10-CD changer, plus the GLS SE hatchback also comes with 3 years FREE servicing. For a FREE leather interior worth £1,000, customers can opt for the GSX SE (hatchback) or Persona SE (saloon) models. All GEN-2 SE models also come branded with a Special Edition badge and Special Edition interior carpet mats.
As if all this wasn’t enough, Proton is offering exclusive finance deals across the GEN-2 Special Edition range, including 0% finance for up to 2 years. Low rate finance is also available for up to 5 years.
The GEN-2 SE range is available from just £10,995 OTR. For more information, please visit www.proton.co.uk
Wednesday, 11 March 2009
Stuff2Send urges 30 million motorists to earn while they drive
A web site that puts motorists in touch with parcels and packages that need to go their way, has attracted 1,100 members since launch in December 2008. Now, more car drivers are being urged to join, using empty space in their cars to deliver stuff and make money for journeys they already do.
“In a recession we all need ways to make the most of the resources we have,” said www.stuff2send.com founder Colin Hay. “Britain’s 30 million cars abound with empty space that could be used to carry parcels and packages. To commuters, students and regular distance drivers we say this; you could be earning while you drive.”
To date, the lion’s share of ‘delivery drivers’ using www.stuff2send.com have been couriers. And many bulkier items like furniture, automotive parts and industrial equipment, can only be carried in larger vans.
However, since Stuff2Send began working with eBay users in February, the number of smaller items like boxes of documents, guitars, clothes and toys has grown. Now the site needs more private motorists to bid for jobs, helping themselves make money, those sending stuff to save it and helping driving down unnecessary emissions from road transport in the process.
Benefits for car owners
Registering as a delivery driver costs £11 a year. The first delivery easily pays back the registration fee as one regular Stuff2send user has found. He’s earned more than £100, from three deliveries in one month.
Benefits for those sending stuff
For senders the site is free to use and offers convenient collection times, as well as a door-to-door service. In February, Amanda Webster paid just £20 to deliver two wheelchairs from Manchester to Birmingham at a time that suited her. The cheapest commercial quote was £200.
Benefits for couriers
Net-savvy white van men are already using Stuff2Send to connect with packages and parcels, boosting income. Mick Davidson of Carrick Couriers was one of the first. “Stuff2Send put me in touch with a customer 400 miles away who I wouldn't otherwise have known about,” he said. “We both gained from the service.”
Benefits for the environment
Every vehicle journey shared with a parcel or package is one less car or van on the road. That means less CO2 and other pollutants in the environment – and less congestion. Stuff2Send also cuts down on unnecessary packaging and waste.
“In a recession we all need ways to make the most of the resources we have,” said www.stuff2send.com founder Colin Hay. “Britain’s 30 million cars abound with empty space that could be used to carry parcels and packages. To commuters, students and regular distance drivers we say this; you could be earning while you drive.”
To date, the lion’s share of ‘delivery drivers’ using www.stuff2send.com have been couriers. And many bulkier items like furniture, automotive parts and industrial equipment, can only be carried in larger vans.
However, since Stuff2Send began working with eBay users in February, the number of smaller items like boxes of documents, guitars, clothes and toys has grown. Now the site needs more private motorists to bid for jobs, helping themselves make money, those sending stuff to save it and helping driving down unnecessary emissions from road transport in the process.
Benefits for car owners
Registering as a delivery driver costs £11 a year. The first delivery easily pays back the registration fee as one regular Stuff2send user has found. He’s earned more than £100, from three deliveries in one month.
Benefits for those sending stuff
For senders the site is free to use and offers convenient collection times, as well as a door-to-door service. In February, Amanda Webster paid just £20 to deliver two wheelchairs from Manchester to Birmingham at a time that suited her. The cheapest commercial quote was £200.
Benefits for couriers
Net-savvy white van men are already using Stuff2Send to connect with packages and parcels, boosting income. Mick Davidson of Carrick Couriers was one of the first. “Stuff2Send put me in touch with a customer 400 miles away who I wouldn't otherwise have known about,” he said. “We both gained from the service.”
Benefits for the environment
Every vehicle journey shared with a parcel or package is one less car or van on the road. That means less CO2 and other pollutants in the environment – and less congestion. Stuff2Send also cuts down on unnecessary packaging and waste.
Smashing new plate bargains
There’s never been a better time to buy a new car, says Which? Car in response to new car sales figures from the Society of Motor Manufacturers and Traders today.
Sales of new cars were down 21.9%* in February compared to last year, but new registration plates mean that car sales are usually much stronger in March. This year, car buyers’ money will go further than ever as new cars are being sold at substantial discount - and pre-registered** models are even cheaper.
Here are a few of the great deals Which? Car has spotted this week from well established online car brokers - but there’s every chance local main dealers will offer similar, or even better, discounts if you haggle.
“March isn’t usually the time to get a great new car deal, but this year everything’s up for grabs - savvy buyers could find themselves driving off with a bargain ‘09’-plate car if they look in the right places.”
Sales of new cars were down 21.9%* in February compared to last year, but new registration plates mean that car sales are usually much stronger in March. This year, car buyers’ money will go further than ever as new cars are being sold at substantial discount - and pre-registered** models are even cheaper.
Here are a few of the great deals Which? Car has spotted this week from well established online car brokers - but there’s every chance local main dealers will offer similar, or even better, discounts if you haggle.
- The Ford Fiesta is the UK’s bestselling car at present, but Broadspeed is selling the 1.25 5dr Zetec model on an ‘09’-plate for £10,371 (list price: £11,995). Buying the same car pre-registered costs even less: £9,651.
- The new VW Golf may have only gone on sale in January, but already it’s possible to save more than £2,100 on the sporty 2.0 diesel GT 5dr - £17,649 at Drivethedeal, instead of a list price of £19,814.
- The Citroen Xsara Picasso 1.6 HDi Desire goes for £12,770 on an ‘09’-plate at Broadspeed, or as little as £10,032 for those buying it pre-registered. List price for this model is £16,995 - so you can save nearly £7,000.
- Save around £11,000 on a luxurious Jaguar XJ saloon with the relatively economical 2.7 diesel engine. Drivethedeal is selling new, ‘09’-reg cars for £33,507, instead of a list price of £44,598.
“March isn’t usually the time to get a great new car deal, but this year everything’s up for grabs - savvy buyers could find themselves driving off with a bargain ‘09’-plate car if they look in the right places.”
FAQs
When it comes to shopping for a new car, there are some common questions that crop up consistently among our readers. Here are our pick of the questions and their solutions.
- How do I know if it’s the right time to buy a new car?
There are a lot of factors to weigh up before you enter the car buying process. It is likely to be your largest expense after buying a home so think carefully about whether your purchase is necessary. If it is, then thoroughly research the vehicle of your choice and follow the steps in the earlier section of this guide to make sure you get a good deal. Remember to think about what you can afford – and this means looking beyond the price tag and considering running costs too. Also look at your credit rating and consider building your credit if necessary before you buy.
- What are the advantages and disadvantages of buying a new car?
Buying a new car is certainly exciting and provides a level of social status. As you are buying new, you can be confident about the vehicle’s history – you know it has not been stolen or involved in an accident as it could have been if it were a used car. You should receive a warranty, often up to three years, which provides reassurance in case of a breakdown and it’s possible to save money by offering your old car as a trade-in. On the downside, car prices in the UK are among the highest in Europe and the value of cars does depreciate rapidly – typically a car will be worth less than 50% of its original value after three years.
- How can I save money on a new car?
This has been covered in depth in part two of this guide, but the most important factor is to do your research and be well-prepared for your purchase. Use the internet as a tool to educate yourself on the type of car you want, its specification and a fair price.
- Is buying online really a better option?
There are advantages and disadvantages to buying online. However, buying online is certainly a CHEAPER option. Searching for deals on the internet through websites such as SaveMoneyOnCars.co.uk can save you a significant amount of money and you have the convenience of never having to leave your computer, or deal with an unrelenting salesman. On the downside you cannot test-drive a car you buy online – but you can negate this issue by heading to a local showroom and taking a car out for a drive to see how it runs and then returning to your computer to make a purchase.
- When is the best time to buy a new car?
March and September are when new registrations are issued and as such these are the worst times to buy a new car if you want to make savings as they are the busiest times for dealers. To capitalise on rebates, incentives and special discounts try shopping in August and February (i.e. the months immediately before new registrations are introduced) as manufacturers are likely to be eager to sell excessive stock and therefore offer rebates to dealers. Additionally, look for cheap new cars in December as the market generally slows down while people concentrate on buying for Christmas. If you don’t have time to wait for one of those months, then at least hold off until the end of each month where possible – dealers may need to hit monthly targets and be willing to drop their prices to reach those goals.
- Should I go for a diesel or a petrol engine?
Diesel fuel is usually more expensive and not very environmentally friendly. However, fuel economy on diesel engines is excellent and they are generally more reliable. So this is all about personal choice.
- Am I better off with a new car loan or a lease?
This all depends on you as an individual. If you want to own a car, have a flexible lifestyle, don’t mind slightly higher monthly payments and can make repayments quickly, go for a car loan. If you want to change your car every few years and have a static lifestyle so you know you will be able to stick to the mileage limit, consider a lease.
- Should I offer my old car as a trade-in?
Putting a trade-in or a down-payment towards your new car will help you reduce your monthly payments. However, are you getting a fair price for your trade-in? Search around online to evaluate what similar models are being sold for and don’t allow yourself to be short-changed. You can always sell your car privately.
- Can I trade in a car I still owe money on?
Yes, but you must be careful. Make sure you have a written agreement from the dealer that they will make the payment on your old car in full by the necessary date so you are not stung with late payment charges.
- What should I look for in the small print?
Make sure you read the small print thoroughly. Look to see if there are any limits to the special offers you might have been granted. For example, if you have been offered free car insurance as part of the deal, are there any age restrictions and is the cover up to the standard you require?
- How do I cope with persistent car salesmen?
Remember that the salesmen’s aim is to sell the car at the highest possible price so he or she earns more commission. That’s their job – so be polite! However, take control of the situation by doing your research and showing that you are an educated buyer who won’t be short-changed. Finally, remember that you can avoid all the showroom hassle by shopping for a new car online.
A helpful glossary - jargon buster
You’re sure to encounter plenty of jargon when you are attempting to buy a new car. Failing to understand these terms could mean that you sign for something you don’t really want, which in turn could bump up your payments. So make sure you know the key terms by reading this glossary.
APR – The annual percentage rate that you will pay on a new car loan – the lower the APR, the more money you will save.
BHP – Brake horse power. Used to indicate the amount of power an engine can produce at a certain speed.
Clocking – When the mileage is adjusted to increase the value of the vehicle. This can be difficult to spot when you buy a new car, but be sure to look out for it.
Depreciation – How rapidly a car loses its value. Most cars will lose at least 50% of their original value after three years.
Down-payment – This is the money you pay initially to reduce the amount you have to pay interest on, therefore cutting your monthly payments.
DVLA – The Driver and Vehicle Licensing Agency where you must record all changes of vehicle ownership in the UK.
EuroNCAP – Standing for the European New Car Assessment Programme which tests the safety of each model of vehicle - the higher the rating, the safer the car with five stars being the maximum score.
ESR – Meaning electric sunroof – operated with a simple push of a button instead of with a winding mechanism.
FSH – Full service history - this is the complete service record of the car you are buying but obviously this is less relevant with new cars.
GPS – Meaning global positioning satellite, this is used to help you navigate your journey.
Grey import – Cars are often sold cheaper in mainland Europe than they are in the UK. As a result it is not uncommon for dealers to ship vehicles in from other countries without the permission of the manufacturer – these are known as ‘grey imports’.
Hybrid cars – An increasingly popular type of vehicle among the environmentally conscious, a hybrid car uses an electric motor and an engine which reduces Carbon Dioxide emissions and makes the vehicles more fuel efficient. Hybrid cars are among the hottest-selling vehicles in the world and include the likes of the Toyota Prius and the Honda Civic.
ICE – Standing for ‘in car entertainment’ this refers to aspects such as CD players, DVD players, etc.
Kit car – Refers to a vehicle that has been put together privately from a collection of parts.
Lemon – A car with a poor service history that might even be dangerous to drive.
MOT – The Ministry of Transport has an annual test which all cars in the UK must pass to prove they are roadworthy - driving a vehicle that hasn’t passed this test is illegal.
MPG – When buying a new car it is important to look beyond the price tag of the vehicle and consider how much you will pay on the car in the long-term. One factor to consider are the fuel costs which is indicated by the number of miles per gallon (mpg) the car can manage. Miles per gallon are calculated in idyllic conditions on a test track, and as such you are unlikely to replicate the MPG written on the vehicle. Nevertheless, they act as a good indication of how regularly you will have to fill up your tank.
PCP – Personal contract purchase is effectively the same as car leasing but gives you the option to buy the car at the end of the leasing period.
PLP – A personal leasing plan in which you pay the car finance company monthly instalments based on the value of the vehicle when you start your contract and its worth at the end of the contract period, after depreciation.
Residual value – How much the car is worth at the end of the leasing period, i.e. once depreciation is considered.
Ringer – A car that has been stolen or had its identity changed.
Sat Nav – An abbreviated version of ‘satellite navigation’ – a system used to help you navigate your journey.
T&T – This stands for tax and MOT and means that the car has passed the Department of Transport’s MOT test and has road tax.
V5 – Make sure that any car you buy comes with a V5 – this is its logbook used for registration purposes.
VIN – Vehicle Identification Number, a 17 digit number that should be found on the metal plate in the engine bay of a car. This is unique to every car and contains information on when and where it was built. This number should always be found in the ‘V5’.
Write-off – Commonly used to refer to a vehicle that has been damaged or stolen. If you are involved in an accident your insurance company could choose to pay an agreed value rather than pay for repairs to the vehicle because the damage is too extensive.
ZEV – Refers to a zero emissions vehicle, such as an electric car, which does not produce any harmful emissions that could negatively impact the environment.
Price rises should fund MOT reminders says IAM
The IAM (Institute of Advanced Motorists) wants MOT fee increases to be used to fund reminders to motorists when their MOT is due. The call comes as MOT fees are set to increase for the fifth year running.
Since 2004 the cost of an MOT has gone up by one third leaving motorists to fork out an extra £13.25 for no obvious improvement in service. The new MOT fees are currently out for consultation from VOSA, the Government’s vehicle testing agency.
IAM Director of Policy and Research, Neil Greig, said: “Motorists have faced constant test fee increases for the past five years, each one above inflation, but they have not seen much improvement in the service.
“VOSA could add value for money by sending out reminders to motorists when their MOT is due, just as the DVLA do with car tax and insurance companies do for insurance. This would cut down on the number motorists who forget that their MOT has expired and continue to use the roads in a technically illegal and potentially unsafe vehicle.”
An IAM survey in 2007 found that 32 per cent of motorists had forgotten when their MOT was due and continued to drive – and break the law – without realising it. It also found 71 per cent think it would be a good idea for garages to send out reminders.
The MOT system is now fully computerised and linked to other databases but there are still no plans to issue motorists with simple reminders that their MOT is due.
Since 2004 the cost of an MOT has gone up by one third leaving motorists to fork out an extra £13.25 for no obvious improvement in service. The new MOT fees are currently out for consultation from VOSA, the Government’s vehicle testing agency.
IAM Director of Policy and Research, Neil Greig, said: “Motorists have faced constant test fee increases for the past five years, each one above inflation, but they have not seen much improvement in the service.
“VOSA could add value for money by sending out reminders to motorists when their MOT is due, just as the DVLA do with car tax and insurance companies do for insurance. This would cut down on the number motorists who forget that their MOT has expired and continue to use the roads in a technically illegal and potentially unsafe vehicle.”
An IAM survey in 2007 found that 32 per cent of motorists had forgotten when their MOT was due and continued to drive – and break the law – without realising it. It also found 71 per cent think it would be a good idea for garages to send out reminders.
The MOT system is now fully computerised and linked to other databases but there are still no plans to issue motorists with simple reminders that their MOT is due.
Thursday, 26 February 2009
Car leasing - how to get a lease - the pros and cons
With car leasing you don’t actually buy the car – instead you effectively rent the car for a pre-agreed length of time and then hand it back to the leasing company at the end of the term.
The amount you pay is based on the residual value of the vehicle – that is its predicted cost at the end of the leasing term with depreciation taken into account. You pay the difference between the value of the vehicle at the beginning of the term and its predicted value at the end of the term in monthly instalments.
As such, leasing a new car is a great way of securing a vehicle that would usually be out of your price range. Luxury cars generally retain their value much better than most conventional vehicles. In fact, according to research in 2007 the top five least depreciating cars in the UK included the Audi TT, Audi A5, Mercedes SLK and Range Rover Sport.
Car leasing is therefore generally cheaper than a new car loan in the short term – while in the longer term it will prove cheaper to buy. However, with car leasing you do not have to worry about your car’s value depreciating as you can simply hand it back to the leasing company.
Some car leasing companies will include servicing as part of the cost and you might have the option to take out a new lease on the same car at the end of the contract.
The disadvantages of car leasing, other than that the car will never be yours, include the fact that it is difficult to settle the lease early and you will usually have to pay interest charges on the remainder of the contract. You also have to agree to a mileage limit and stick to it or you could face charges when you return the vehicle. You must also arrange comprehensive car insurance as you are effectively driving someone else’s car.
The amount you pay is based on the residual value of the vehicle – that is its predicted cost at the end of the leasing term with depreciation taken into account. You pay the difference between the value of the vehicle at the beginning of the term and its predicted value at the end of the term in monthly instalments.
As such, leasing a new car is a great way of securing a vehicle that would usually be out of your price range. Luxury cars generally retain their value much better than most conventional vehicles. In fact, according to research in 2007 the top five least depreciating cars in the UK included the Audi TT, Audi A5, Mercedes SLK and Range Rover Sport.
Car leasing is therefore generally cheaper than a new car loan in the short term – while in the longer term it will prove cheaper to buy. However, with car leasing you do not have to worry about your car’s value depreciating as you can simply hand it back to the leasing company.
Some car leasing companies will include servicing as part of the cost and you might have the option to take out a new lease on the same car at the end of the contract.
The disadvantages of car leasing, other than that the car will never be yours, include the fact that it is difficult to settle the lease early and you will usually have to pay interest charges on the remainder of the contract. You also have to agree to a mileage limit and stick to it or you could face charges when you return the vehicle. You must also arrange comprehensive car insurance as you are effectively driving someone else’s car.
Time strapped mums rely on car journeys to catch up with kids
New research reveals that time-poor mums are increasingly turning to car journeys and modern technology to catch up with their kids, due to a lack of quality time spent in the home.
The research, conducted by Sheilas’ Wheels car insurance, reveals that almost half (45 per cent) of mums believe busy lifestyles are threatening the amount of time they can spend with their families.
More than one in ten mums (11 per cent) offer their children lifts specifically so they can spend time talking to them, over half (53 per cent) use email and nearly a quarter (23 per cent) resort to texting their kids to stay in contact.
For many mums the family car is replacing the home as the best place to spend time together. The research reveals that 56 per cent of mums actually find it easier to chat to their children in the car thanks to fewer distractions, a more relaxed atmosphere and the confined space - presumably meaning there is no escape.
Figures show that a proportion of mums (14 per cent) also believe the car offers a neutral ground to talk, with five per cent taking advantage of the limited eye contact to discuss sensitive subjects such as relationships and sex education.
The research also indicates that families are spending less and less quality time together over the breakfast or dinner table, with one in ten (10 per cent) either never eating together as a family or only doing so for special occasions such as birthdays or Christmas. Many children also regularly focus their attention away from family conversation while eating dinner at home, preferring to eat while using computers (28 per cent) or watching TV (30 per cent).
Jacky Brown at Sheilas’ Wheels, comments: “Mums today seem to be constantly on the go. As long hours at work and busy social lives are the becoming norm, grappling for extra time to spend with the kids is increasingly common. Although family meal times are ideal, they’re not always feasible - which is why it seems the car is rapidly becoming the new kitchen table when it comes to catching up with the kids.
“The confinement of a car has its advantages. Journeys offer regular one-to-one contact with the kids and they’re belted up so there is no escape if the topic of bad grades or relationships comes up. The important thing for mums behind the wheel to remember is not to be distracted and remain focused on the road at all times, no matter how intense the conversation gets.”
The research, conducted by Sheilas’ Wheels car insurance, reveals that almost half (45 per cent) of mums believe busy lifestyles are threatening the amount of time they can spend with their families.
More than one in ten mums (11 per cent) offer their children lifts specifically so they can spend time talking to them, over half (53 per cent) use email and nearly a quarter (23 per cent) resort to texting their kids to stay in contact.
For many mums the family car is replacing the home as the best place to spend time together. The research reveals that 56 per cent of mums actually find it easier to chat to their children in the car thanks to fewer distractions, a more relaxed atmosphere and the confined space - presumably meaning there is no escape.
Figures show that a proportion of mums (14 per cent) also believe the car offers a neutral ground to talk, with five per cent taking advantage of the limited eye contact to discuss sensitive subjects such as relationships and sex education.
The research also indicates that families are spending less and less quality time together over the breakfast or dinner table, with one in ten (10 per cent) either never eating together as a family or only doing so for special occasions such as birthdays or Christmas. Many children also regularly focus their attention away from family conversation while eating dinner at home, preferring to eat while using computers (28 per cent) or watching TV (30 per cent).
Jacky Brown at Sheilas’ Wheels, comments: “Mums today seem to be constantly on the go. As long hours at work and busy social lives are the becoming norm, grappling for extra time to spend with the kids is increasingly common. Although family meal times are ideal, they’re not always feasible - which is why it seems the car is rapidly becoming the new kitchen table when it comes to catching up with the kids.
“The confinement of a car has its advantages. Journeys offer regular one-to-one contact with the kids and they’re belted up so there is no escape if the topic of bad grades or relationships comes up. The important thing for mums behind the wheel to remember is not to be distracted and remain focused on the road at all times, no matter how intense the conversation gets.”
Tuesday, 24 February 2009
New car loans - the pros and cons
The biggest mistake most buyers make is to buy a new car without checking out their credit history and discovering whether or not they can support a new car loan. Check your credit profile via Equifax and Experian before you apply for a new car loan because any rejected applications will hurt your credit score. Once you have your credit rating to hand, you will be able to judge the loan rates that are available to you.
Those with good credit profiles could qualify for the leading loan rates in the UK – which are likely to be much lower than the rates you will pick up from your bank or through the dealer, which is why shopping around is so important.
If you have poor credit, it makes sense to enhance your credit rating before applying for a loan. If you don’t have time to do this, then be careful to shop around for rates based on your credit score to avoid rejections.
Making a down-payment is especially important with a new car loan as any money you can put towards the car will drastically reduce the amount you repay in the long-term. Think carefully too about the amount of money you are borrowing. If you borrow a large sum of money (£10,000 or more) you may find cheaper rates with secured loans but these will put your property at risk if you fail to make repayments.
The obvious advantage of a new car loan is that you own the car immediately and there are a huge number of lenders out there with no restrictions on thetype of car you drive or the mileage you clock up, which means you should be able to secure a good deal by shopping around. The disadvantage is that you will pay back more in the long-term, but this is negated if you know you can afford to repay relatively quickly.
Motorists turn to dealer finance
The latest statistics released by the Finance and Leasing Association show that the number of people buying cars on finance dropped significantly in the last three months of 2008.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The downturn in the motor market has been well-documented in recent months. Despite the fall in the final quarter of the year, dealer finance has actually become a more popular way to finance car purchases. The percentage of private new car sales bought using dealer finance increased from 47% in 2007 to 53.2% in 2008.”
Stephen Sklaroff, Director General of the FLA, added: “If motor finance companies are to continue to be a key source of credit for consumers, they need to be able to access government support which is already in place for some parts of the financial sector.”
- In Q4 2008, the number of cars bought on finance by consumers through dealerships was 19 per cent down on Q4 2007.
- Consumers purchased 27% fewer new cars and 13% fewer used cars with dealer finance in Q4 2008.
- For 2008 as a whole, the number of new cars used cars bought on finance by consumers contracted by 3% and 2% respectively.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The downturn in the motor market has been well-documented in recent months. Despite the fall in the final quarter of the year, dealer finance has actually become a more popular way to finance car purchases. The percentage of private new car sales bought using dealer finance increased from 47% in 2007 to 53.2% in 2008.”
Stephen Sklaroff, Director General of the FLA, added: “If motor finance companies are to continue to be a key source of credit for consumers, they need to be able to access government support which is already in place for some parts of the financial sector.”
Thursday, 19 February 2009
How to secure the cheapest new car prices
Finding a cheap new car isn’t straightforward if you walk into a showroom and simply ask the salesman to drop his price. If you want a cheap new car, follow these steps to help you cut new car prices.
Use internet resources and consider buying online
More than 80% of all first-time new car buyers do their research first online as it is the fastest and easiest way to find out the information you need. Online directories and comparison websites are the best place to start so you can see hundreds of new car prices and specifications of the model you desire at one time.
Savemoneyoncars.co.uk is one of the leading online directories listing the best prices on cheap new cars in the UK.
Unfortunately, only around 10% of car buying actually takes place online though this number is rising. One of the major concerns with buying online is that you can’t test drive the vehicle. However, in the case of buying a new car, this risk is reduced because new cars are all of a similar standard so there is less risk by buying ‘sight unseen’. Another option is to head to your local dealership and take out the same make and model for a test drive and then complete your purchase online. This will allow you to capitalise on online discounts and reduced prices, while still giving you the peace of mind that only a test drive can provide.
Get your car finance ahead of time
Part three of this guide will explain the car financing options available to you, but it’s a good idea to shop for your car finance away from the dealership. Remember that a new car loan or a new car lease is a different product from the car itself – they don’t need to be tied together.
Once you have decided on the right method of car finance for you, use a website such as contracthireandleasing.com to discover the cheapest leasing deals available, or a comparison website to compare new car loan rates. Establish car financing before you buy a vehicle and don’t let the dealer know you intend to find financing elsewhere until price negotiations are complete.
If you have pre-approval for a loan you effectively become a cash buyer to the dealer. By contrast, if you rely on the dealer’s finance department you leave yourself open to poor rates of interest and hidden fees. Though there are certainly some dealers that will take an honest approach to your financing, some may add a percentage point to the lender’s rate as their fee for sorting out the finance for you. Why pay this when you can simply organise your finance separately?
Learn how to deal with the dealers
Though there are huge savings to be made online there is no substitute for taking the car you plan to buy for a test drive. You should always ask for a test drive so you can find out about the car’s comfort, handling and safety. Also remember to take a test drive before you begin any negotiations over price.
When talking to a salesperson, just remember that you are in charge of the process. Their aim is to get you to buy the vehicle there and then – most salesmen assume that if you walk away from the dealership you won’t come back. As a result, they can’t be blamed for their persistence. Their target is to look for eager, uneducated buyers and to secure a sale at the highest possible price so they earn more commission. Your goal should be to educate yourself ahead of time and to secure the cheapest price.
Do you need an extended warranty?
A manufacturer’s warranty comes will all new cars and provides the services listed with the warranty free of charge for a limited period of time. Most manufacturers’ warranties will last for two-three years but it is possible, in most cases, to take out an extended warranty.
Think about if you really need an extended warranty, however. If you are likely to trade the car in for a new model every two-three years then chances are that you don’t need one. Also examine your insurance policy to see if many of the aspects of an extended warranty would be covered if you had to make a claim on your insurance.
It’s a good idea to obtain several warranties before you buy to familiarise yourself with the language used and what’s covered. If you decide to take out an extended warranty make sure all major systems are covered; choose a warranty that will pay repair deals directly; and beware of deductibles.
Look for incentives and the right time to buy
Manufacturers offer special deals to dealers at certain times of the year when they are struggling to move excessive stock. This particularly applies towards the end of the model year – so look in the month before new registrations are introduced for cheap new cars.
Also look around for rebates and special offers – rebates are discounts for new car buyers on slow-moving inventory. Your dealer might not inform you of the rebate if they plan to add it to their profit so make sure you do your research and see what’s available. Additionally, many dealers will be willing to cover your insurance, tax or fuel costs for a set period which can offer substantial savings.
In the next section we’ll examine the car finance options available.
Use internet resources and consider buying online
More than 80% of all first-time new car buyers do their research first online as it is the fastest and easiest way to find out the information you need. Online directories and comparison websites are the best place to start so you can see hundreds of new car prices and specifications of the model you desire at one time.
Savemoneyoncars.co.uk is one of the leading online directories listing the best prices on cheap new cars in the UK.
Unfortunately, only around 10% of car buying actually takes place online though this number is rising. One of the major concerns with buying online is that you can’t test drive the vehicle. However, in the case of buying a new car, this risk is reduced because new cars are all of a similar standard so there is less risk by buying ‘sight unseen’. Another option is to head to your local dealership and take out the same make and model for a test drive and then complete your purchase online. This will allow you to capitalise on online discounts and reduced prices, while still giving you the peace of mind that only a test drive can provide.
Get your car finance ahead of time
Part three of this guide will explain the car financing options available to you, but it’s a good idea to shop for your car finance away from the dealership. Remember that a new car loan or a new car lease is a different product from the car itself – they don’t need to be tied together.
Once you have decided on the right method of car finance for you, use a website such as contracthireandleasing.com to discover the cheapest leasing deals available, or a comparison website to compare new car loan rates. Establish car financing before you buy a vehicle and don’t let the dealer know you intend to find financing elsewhere until price negotiations are complete.
If you have pre-approval for a loan you effectively become a cash buyer to the dealer. By contrast, if you rely on the dealer’s finance department you leave yourself open to poor rates of interest and hidden fees. Though there are certainly some dealers that will take an honest approach to your financing, some may add a percentage point to the lender’s rate as their fee for sorting out the finance for you. Why pay this when you can simply organise your finance separately?
Learn how to deal with the dealers
Though there are huge savings to be made online there is no substitute for taking the car you plan to buy for a test drive. You should always ask for a test drive so you can find out about the car’s comfort, handling and safety. Also remember to take a test drive before you begin any negotiations over price.
When talking to a salesperson, just remember that you are in charge of the process. Their aim is to get you to buy the vehicle there and then – most salesmen assume that if you walk away from the dealership you won’t come back. As a result, they can’t be blamed for their persistence. Their target is to look for eager, uneducated buyers and to secure a sale at the highest possible price so they earn more commission. Your goal should be to educate yourself ahead of time and to secure the cheapest price.
Do you need an extended warranty?
A manufacturer’s warranty comes will all new cars and provides the services listed with the warranty free of charge for a limited period of time. Most manufacturers’ warranties will last for two-three years but it is possible, in most cases, to take out an extended warranty.
Think about if you really need an extended warranty, however. If you are likely to trade the car in for a new model every two-three years then chances are that you don’t need one. Also examine your insurance policy to see if many of the aspects of an extended warranty would be covered if you had to make a claim on your insurance.
It’s a good idea to obtain several warranties before you buy to familiarise yourself with the language used and what’s covered. If you decide to take out an extended warranty make sure all major systems are covered; choose a warranty that will pay repair deals directly; and beware of deductibles.
Look for incentives and the right time to buy
Manufacturers offer special deals to dealers at certain times of the year when they are struggling to move excessive stock. This particularly applies towards the end of the model year – so look in the month before new registrations are introduced for cheap new cars.
Also look around for rebates and special offers – rebates are discounts for new car buyers on slow-moving inventory. Your dealer might not inform you of the rebate if they plan to add it to their profit so make sure you do your research and see what’s available. Additionally, many dealers will be willing to cover your insurance, tax or fuel costs for a set period which can offer substantial savings.
In the next section we’ll examine the car finance options available.
HPI’s Tip of the Week No.1
Buying a used car can be a concern. Do you buy from a dealer and take away some of that fear and hassle, or go private and maybe grab yourself a bargain?
Whichever way you choose, there are a few rogues out there looking to make a fast buck. But by following these steps, you can stop yourself becoming a victim of car crime
Whichever way you choose, there are a few rogues out there looking to make a fast buck. But by following these steps, you can stop yourself becoming a victim of car crime
- Always research the market and check the average valuation
- Always meet at the sellers home address
- Always get a receipt for any deposit
- Always have the car inspected by a mechanic
- Always carry out an HPI Check to find out if the car has a hidden history
Monday, 16 February 2009
How to get started - buying a new car
Buying a new car needn’t be a complicated process in which you sit for hours in a dealership wondering whether you’re really getting a good deal while you’re secretly confused by the salesman’s jargon. A new car is something to enjoy, so buying a new car shouldn’t be something to fear. That’s why we’ve put together this guide to help you buy a new car that’s right for you, at the cheapest available price.
If you’re looking to buy a new car you shouldn’t rush down to the local dealership and see what they have on offer. Instead, you should do your research and make sure you are completely prepared. Here is a brief checklist of the steps you should follow:
- Don’t be desperate to buy – Don’t wait until your current vehicle is close to the scrapheap before you shop around for another. Give yourself time to research a new car and look around for the best deals. Of course, if you are in dire need of a new car at least don’t give that impression to the dealer!
- Know what you can afford – It might not be the most fun recommendation, but unfortunately not everyone can afford their dream car. Examine your financial situation closely and, assuming you’re not buying the car outright with a lump sum payment direct from your bank account, ask yourself how much you can afford to repay on a monthly or annual basis? Think about the running costs of the car too – prepare a budget for fuel costs, servicing and taxation. This should give you an honest perspective of what’s available to you.
- Get your credit rating – A credit profile is basically a financial analysis of you based on your reliability, if you pay bills on time, how you have repaid previous loans and credit cards, etc. It gives the financial companies some perspective on how much of a risk you are to them. They will always check your credit profile before offering you a deal and you should do the same. Contact a credit reference agency such as Experian or Equifax and familiarise yourself with your credit rating. Then if a dealer claims you have bad credit when in reality your credit is good, you will know to look elsewhere.
- Build your credit rating - Once you have retrieved your credit profile, you may find that your credit rating is only fair or poor. In this case it’s a good idea to try and build your credit rating before you buy. One way to do this is to take out a credit card and making the necessary repayments each month. Ensure that all of the household bills are in your name and that you are paying them off on time, and make sure your credit profile is up-to-date with the correct information about your address and employment. Your credit rating will be boosted if you have a fixed address and employment for more than six months and if you always make repayments on time. If you have poor credit and need a car quickly, ask your parents or a reliable family member or friend to co-sign on the car with you – this will help to boost your credit score but you must remember to make repayments on time or you will hurt your own credit rating and that of the co-signer.
- Can you put money down – Think if you can afford to put money down on your new car as this will greatly reduce the amount of interest you have to repay. You might want to offer your old vehicle as a trade-in – if this is your plan you might have to shop around for dealers that will accept a trade-in.
- Know what you want – Make the dealer work for you by knowing what you want ahead of time – and perhaps more importantly, know what you don’t want too. This means more than just having an idea of the model and colour of the vehicle you want – think about its specification too. Do you need air conditioning, for example? Would you feel lost without a CD player and how important is that sports suspension?
- Research the vehicle – Find out a standard price on the new car you want. You can do this by visiting online directories and car supermarkets. By searching for prices on thousands of vehicles that are the same make and model as the new car you want, you’ll be able to get a fair evaluation of the sort of price you should be expecting. Remember that most dealers will buy new cars in bulk, meaning they receive discounts from the manufacturers. Though they will understandably look to make some profit, some of this saving should be passed on to you, the consumer. So do your research to make sure you get it!
- Look for incentives – Many dealers will offer incentives and rebates as part of their negotiation process. Keep an eye open for these offers, particularly in December (when the market drops) February and August (the month before new registrations are introduced). Many analysts suggest that you should never pay the asking price on a new car – at the very least you should pick up some sort of freebie, whether it be road tax, insurance, fuel costs or a reduction in the overall cost of the vehicle.
- Shop around online – Dealers and brokers will generally offer cheaper new car prices through websites as they save on overheads. So make sure you scout around for the cheapest deals online. Even if you don’t want to buy a new car online, you can still take the quotes you receive into a dealership and ask them to beat that price.
Now you’re prepared we’ll go on to look at some top tips to help you save cash as you buy a new car.
Thursday, 5 February 2009
Buying new cars - preparing yourself
There’s no point in knowing everything about the car you wish to buy if you don’t have enough knowledge about your personal circumstances. Salesmen may attempt to tell you what’s right for you… but in truth, only you should decide. Here are some important questions you should know the answer to before you attempt to buy:
Do you know your credit rating? If not, you can request your profile at a number of agencies including Experian and Equifax. Your credit rating will determine the loan rate offer you receive (if you get one at all). If you have no credit history or know you have bad credit, you should attempt to build your credit score before you buy.
Do you have money for a down-payment? Work out what you can comfortably afford to use as a down-payment ahead of time and stick to it. A down-payment will reduce your monthly bills – but you should not put down more than you can afford.
Can you offer a trade in? If so, it’s best to know the value of your car ahead of time. Seek an independent evaluation or at least scan around used car websites and magazines to discover the price that cars of the same make and model are fetching. Don’t allow yourself to be short-changed on how much the car is worth. However, you must be honest – consider its condition and be realistic about its depreciation.
Do you owe money on the car you plan to trade in? Remember that the car loan will still belong to you until the dealer pays it off so you must make sure your loan provider picks up the payment in time. Have the new car dealer produce a statement in writing that they will pay off the car within the time you require.
How desperate are you for a new car? Whatever the answer to this question may be, don’t let the dealer know you need a new car urgently. If your current car is dying or perhaps you don’t have a vehicle at all, you could feel rushed into a deal you shouldn’t agree to. Take your time, and where possible plan ahead – don’t wait until your car is spluttering before looking for a new one!
Do you know your credit rating? If not, you can request your profile at a number of agencies including Experian and Equifax. Your credit rating will determine the loan rate offer you receive (if you get one at all). If you have no credit history or know you have bad credit, you should attempt to build your credit score before you buy.
Do you have money for a down-payment? Work out what you can comfortably afford to use as a down-payment ahead of time and stick to it. A down-payment will reduce your monthly bills – but you should not put down more than you can afford.
Can you offer a trade in? If so, it’s best to know the value of your car ahead of time. Seek an independent evaluation or at least scan around used car websites and magazines to discover the price that cars of the same make and model are fetching. Don’t allow yourself to be short-changed on how much the car is worth. However, you must be honest – consider its condition and be realistic about its depreciation.
Do you owe money on the car you plan to trade in? Remember that the car loan will still belong to you until the dealer pays it off so you must make sure your loan provider picks up the payment in time. Have the new car dealer produce a statement in writing that they will pay off the car within the time you require.
How desperate are you for a new car? Whatever the answer to this question may be, don’t let the dealer know you need a new car urgently. If your current car is dying or perhaps you don’t have a vehicle at all, you could feel rushed into a deal you shouldn’t agree to. Take your time, and where possible plan ahead – don’t wait until your car is spluttering before looking for a new one!
Honda voted best for customer service
Honda (UK) has been voted the top car company for customer service, by a judging panel of 24,000 consumers.
The UK Customer Satisfaction Index (UKCSI) is the most wide-reaching measure of customer satisfaction in the country, enabling members of the public to rate how well or how badly companies and organisations are performing.
In the automotive sector, customers were asked to rate their overall experience throughout their relationship with the car companies, from initial enquiries through to after-sales service. Honda (UK) emerged top, followed by Mercedes-Benz (UK) and Toyota GB.
Matt Gibson, Head of Customer, Honda (UK) said: “In tough market conditions, great customer service is a key differentiator. We are delighted to have won this award, selected by the people that matter most.”
To arrive at a shortlist of 33 top-performing organisations, the ICS invited 24,000 members of the public to contribute to an online survey assessing companies and organisations across 11 different sectors.
The UK Customer Satisfaction Index (UKCSI) is the most wide-reaching measure of customer satisfaction in the country, enabling members of the public to rate how well or how badly companies and organisations are performing.
In the automotive sector, customers were asked to rate their overall experience throughout their relationship with the car companies, from initial enquiries through to after-sales service. Honda (UK) emerged top, followed by Mercedes-Benz (UK) and Toyota GB.
Matt Gibson, Head of Customer, Honda (UK) said: “In tough market conditions, great customer service is a key differentiator. We are delighted to have won this award, selected by the people that matter most.”
To arrive at a shortlist of 33 top-performing organisations, the ICS invited 24,000 members of the public to contribute to an online survey assessing companies and organisations across 11 different sectors.
Wednesday, 4 February 2009
Buying new cars - make sure you get the right vehicle
Buying a new car is a very different process from buying a used car and that is why we have separated the two subjects in our car buying tips guide. This section looks at some of the factors you should consider before buying a new car.
You’re already on the right track to buying a new car by reading this guide – because research is the key to securing a competitive deal. This starts by looking into the car you want before you arrive at a dealership where a salesman could persuade you into taking a deal you don’t really want. Perhaps you already know the car you wish to drive, but here are some important questions you should ask yourself - and if you don’t know the answer to each one, research the model online so you can be sure you’re getting what you want:
Is the car in your price range? How much can you comfortably afford to pay on the car each month? What is the manufacturer’s recommend list price?
What is the car’s standard specification? Does the car come with a CD player and air conditioning, for example, or are you charged extra to have these installed?
What is the car’s running costs? If you’re buying a new car you must think beyond the monthly payments and consider how much the car will cost to run. How many miles does it get per gallon and does that apply to city or motorway driving? Which tax band does the car fit into? Is it easy to get the car repaired if necessary? How much will it cost to insure?
How much does the car’s value depreciate? Every car’s value depreciates greatly as soon as you drive it away from the dealership – but some vehicles hold their value better than others, which is important particularly if you plan to sell the car sometime in the future. According to a recent analysis by a contract hire specialist, the top five least depreciating cars in the UK are as follows:
- Mini – Worth 54% of its original value after three years.
- Audi TT – Worth 52% of its original value after three years.
- Audi A5 – Worth 51% of its original value after three years.
- Range Rover Sport – Worth 50% after three years.
- Mercedes SLK – Worth 49% after three years.
Of course, depreciation is more important if you are considering leasing a car – the higher the residual value of a car, the less you will have to pay on a car lease. However, it should also be considered when buying a new car too. The top three cars in this list are all new and have waiting lists which suggest that if you sell them on in three years, you will still attract a healthy return.
How green is the car? If you’re environmentally conscious be sure to look into your prospective vehicle’s CO2 emissions. You might be particularly interested in hybrid and electric vehicles which are generally more cost effective in terms of miles per gallon and are grouped in lower tax bands than their petrol guzzling alternatives.
How safe is the car? Generally speaking, you should be much safer in a new car than a used car as you know it has no history of being involved in accidents and it should benefit from the latest crash testing technology. By visiting the Euro NCap website you can discover the safety ratings for any vehicle you wish to drive.
Tuesday, 3 February 2009
First time car buyer tips
If this is your first time buying a car, there are some important factors to consider:
- What type of car do you want (and can you afford)?
Unfortunately picking a new car isn’t as easy as just grabbing the car you want – or else we’d all be driving around in Porsches, Ferraris and the like. You need to think about what you can comfortably afford – and this goes beyond your monthly loan repayments.
Think about how much it costs to run the car. Would parts be difficult and expensive to replace? How many miles can the car travel before you need to refill the petrol tank? What are the insurance costs going to be and can you afford the payments (remember, car insurance is a legal necessity)?
Also think about what tax band the car fits into. The Government issued a series of tax bands on March 01, 2001, based on the levels of CO2 emissions produced by vehicles. The least polluting vehicles, such as electric and hybrid cars, fit into the top two tax bands meaning you have little or no tax to pay. However, as pollution levels increase so does taxation.
- Always come prepared
Research is the key to securing a competitive price for a new or used car. Shop around for good deals online so you have an estimation of the price you should be paying.
- How should you finance your car?
Look closely at the best methods of car finance for the vehicle of your choice. Remember to compare like for like – if you are taking out a car loan, compare the annual percentage rate; ask how much you will repay each month and how long the repayment period will be. Also, ask for the total amount you will repay after interest and all costs are included.
Generally speaking you should put down the biggest deposit you can afford to reduce your monthly payments. Work out how much you need to borrow and remember to check the terms from different lenders. Secured loans are often cheaper than unsecured loans, but they do carry more risk – if you take out a secured loan against your home and you do not keep up repayments, it could be repossessed.
- How do you establish your credit history?
One of the biggest barriers you may face as a first time car buyer is a lack of credit history – especially if you are young and do not own your own home and/or do not have a credit card. It is a good idea to check your credit history before you apply for a loan, as every loan application that is rejected will hurt your credit score. Contact a credit reference agency such as Equifax or Experian to get a copy of your credit profile. People with bad credit will face higher loans.
If you do not have any credit, you must establish it. You can improve your credit score by taking out a credit or store card and paying it off each month. Remember not to run up a balance or you could find yourself with debt issues – and besides, creditors do not like to see a credit card balance above 50%.
Lenders will also review your employment history so it helps to have an established monthly income and to have been employed by the same company for more than six months. It also helps to have been living at the same address for more than six months to show you have stability. And remember to always pay your bills on time so you don’t receive any black marks against your credit score.
- Consider co-signing for a loan
If you can’t get approved for a loan of your own (and most young people without an established credit history won’t be able to) then ask your parents or guardian if they will co-sign on the loan with you. This puts the loan in the name of two parties at once and benefits you because it allows you to build credit. However, this does carry an extensive risk because if you default on the repayments, your parents become responsible – if neither of you can pay, then both credit scores will be affected and your car will be repossessed.
Is buying a car right for you?
Whether you’re about to buy a car for the first time, or you’re upgrading your current vehicle, finding the right car at the right price is an arduous task. Even if you know the exact type of vehicle you want down to its colour and specification, taking on the car dealer, filing through a contract and getting to grips with the jargon would put even the most enthusiastic motorist to the test.
That’s why we have a compiled a guide to buying a car for all types of motorists no matter what vehicle you are in the market for. Read on for our car buying tips so you can be sure you’re in the driving seat when you find the car of your dreams.
Before you even start on the road to buying a vehicle you need to think about whether it is the right choice for you. Are you financially stable enough to cope with monthly payments? Would other forms of transport work out more cost effective? Indeed if you live close to your work and social scene, do you even need to buy a car at all?
Also think about the alternative methods of car finance – hire purchase, car leasing and personal contract purchase. Generally speaking, leasing a car will be right for you if you want to change your vehicle every few years, want lower monthly payments and have a stable lifestyle whereas buying works out best for those who drive a lot of miles, have a lifestyle that might change and enjoy having ownership of a vehicle.
Monday, 2 February 2009
Beware the tricks of the trade
Many car dealerships and brokers will be honest and up front with their customers, especially online dealers who have less to gain from ‘tricks of the trade’. However, you should still be vigilant so here are some tips to help you avoid being stung:
Always read the contract – If you’re buying a new car online this is particularly advantageous. Print off a copy of the contract and its terms and conditions, and read it thoroughly before you sign anything. In a dealership you might feel pressured to sign before you’ve had a chance to thoroughly understand what’s in front of you. By shopping online you avoid this pressure.
Beware of deceptive advertising – It’s easy to be deceived by a strong advertising slogan on any product. However, look closely to discover what the advertisement really says. Is there an asterisk at the end of a special offer? What stipulations apply?
Think about how the dealer can profit – A dealer can add to their profit in many ways such as by hiking the retail price; offering less than the market value for your trade-in; increasing the rate of your car finance deal; offering unnecessary extras. Be aware of all of these factors going in.
Payment protection insurance and gap insurance – Both payment protection and gap insurance can be very useful to cover you in worst case scenarios. However, that doesn’t mean that the dealer will necessarily offer you the best deal. Remember you can shop around for payment protection and gap insurance just as you would for a regular car insurance policy. There’s no point in paying more than you have to for the same level of coverage.
Always read the contract – If you’re buying a new car online this is particularly advantageous. Print off a copy of the contract and its terms and conditions, and read it thoroughly before you sign anything. In a dealership you might feel pressured to sign before you’ve had a chance to thoroughly understand what’s in front of you. By shopping online you avoid this pressure.
Beware of deceptive advertising – It’s easy to be deceived by a strong advertising slogan on any product. However, look closely to discover what the advertisement really says. Is there an asterisk at the end of a special offer? What stipulations apply?
Think about how the dealer can profit – A dealer can add to their profit in many ways such as by hiking the retail price; offering less than the market value for your trade-in; increasing the rate of your car finance deal; offering unnecessary extras. Be aware of all of these factors going in.
Payment protection insurance and gap insurance – Both payment protection and gap insurance can be very useful to cover you in worst case scenarios. However, that doesn’t mean that the dealer will necessarily offer you the best deal. Remember you can shop around for payment protection and gap insurance just as you would for a regular car insurance policy. There’s no point in paying more than you have to for the same level of coverage.
Manheim Auctions reports January surge in used car demand and prices
Manheim’s latest Market Analysis for the first month of 2009 reports a significant increase in used car activity following the Christmas break. Demand and prices have soared beyond the level of any normal seasonal uplift, with record numbers of buyers in the wholesale market fighting over stock. At £6,054, the average wholesale used car selling price was 5.8% (£334) up in January compared with a 3.1% (£185) fall in December. The average selling price increased in all three sectors – Fleet, Dealer and Manufacturer with many of Manheim’s auction centres reporting highest sales levels ever and online sales through Simulcast smashing all previous records.
The extraordinary surge in wholesale demand has taken most of the market by surprise and Manheim are still urging caution as retail dealers settle down to the task of finding new customers for this stock.
Commenting on the current market, Mike Pilkington, Managing Director of Manheim Auctions & Remarketing said, “There is no doubt that dealers had reduced their stocks pre-Christmas and a lot of this current demand has been driven by the need to replenish empty forecourt spaces. Although there appears to be healthy consumer interest, it remains to be seen for just how long this will be sustained. We have also seen many new trade buyers coming to auction and this has contributed to the huge rise in auction conversion rates and of course the more buyers bidding, the higher the prices.”
Manheim’s 19 auction centres throughout the UK have all enjoyed a very strong January. New records have been set in two of the largest sites in Colchester and Bristol where auctions have regularly achieved 90%-100% conversion rates. Colchester smashed the 6,000 sales barrier in a single month, beating its previous record of 5,525 vehicles sold in August 2006 while Bristol with nearly 3,900 vehicles sold beat the previous best monthly total of 3,230 units sold in July 2003.
Simulcast, Manheim Auctions’ online broadcast of physical auctions, has never been so busy with a record 2,100 vehicles sold in January, up 78% year-on-year. The numbers of online bidders often exceeded 100 per sale at several auction centres including Leicester and Coventry. The value of the units sold by Simulcast in January was more than £13 million.
In the Fleet sector average month-on-month values rose by 9.0% (£425) compared with a fall of 3.1% (£149) in December, while in the Dealer sector average month-on-month values rose by 1.9% (£31) compared with a fall of 4.9% (£82) in the previous month. The Manufacturer sector also saw a month-on-month increase of 3.2% (£284) compared with a fall of 5.0% (£465) in December.
Examples of the increases in average wholesale used car selling prices in January compared with December include the Small Hatchback, Large Family and Soft-Roader segments in the Fleet sector which rose by 10.6% (£373), 10.5% (£381) and 16.3% (£851) respectively. In the Dealer sector, the Compact Executive segment rose by 8.0% (£182), the MPV segment rose by 7.5% (£148) and the Off-Roader segment increased by 26.2% (£710).
The extraordinary surge in wholesale demand has taken most of the market by surprise and Manheim are still urging caution as retail dealers settle down to the task of finding new customers for this stock.
Commenting on the current market, Mike Pilkington, Managing Director of Manheim Auctions & Remarketing said, “There is no doubt that dealers had reduced their stocks pre-Christmas and a lot of this current demand has been driven by the need to replenish empty forecourt spaces. Although there appears to be healthy consumer interest, it remains to be seen for just how long this will be sustained. We have also seen many new trade buyers coming to auction and this has contributed to the huge rise in auction conversion rates and of course the more buyers bidding, the higher the prices.”
Manheim’s 19 auction centres throughout the UK have all enjoyed a very strong January. New records have been set in two of the largest sites in Colchester and Bristol where auctions have regularly achieved 90%-100% conversion rates. Colchester smashed the 6,000 sales barrier in a single month, beating its previous record of 5,525 vehicles sold in August 2006 while Bristol with nearly 3,900 vehicles sold beat the previous best monthly total of 3,230 units sold in July 2003.
Simulcast, Manheim Auctions’ online broadcast of physical auctions, has never been so busy with a record 2,100 vehicles sold in January, up 78% year-on-year. The numbers of online bidders often exceeded 100 per sale at several auction centres including Leicester and Coventry. The value of the units sold by Simulcast in January was more than £13 million.
In the Fleet sector average month-on-month values rose by 9.0% (£425) compared with a fall of 3.1% (£149) in December, while in the Dealer sector average month-on-month values rose by 1.9% (£31) compared with a fall of 4.9% (£82) in the previous month. The Manufacturer sector also saw a month-on-month increase of 3.2% (£284) compared with a fall of 5.0% (£465) in December.
Examples of the increases in average wholesale used car selling prices in January compared with December include the Small Hatchback, Large Family and Soft-Roader segments in the Fleet sector which rose by 10.6% (£373), 10.5% (£381) and 16.3% (£851) respectively. In the Dealer sector, the Compact Executive segment rose by 8.0% (£182), the MPV segment rose by 7.5% (£148) and the Off-Roader segment increased by 26.2% (£710).
Shop around to secure the best deals
Though you should always shop around and pick up quotes from several online car directories, your shopping around shouldn’t end there. Apply the same philosophy to car finance quotes as the dealer is not the only one who can finance your new car. Shop around for good deals on loans too.
Where to buy a new car
As with the majority of consumer products, buying a new car online is invariably cheaper than buying directly from a dealership. Shop around on online new car buying websites, especially those that compare a range of makes and models under one banner. By the nature of having fewer overheads and no commission to pay to salesmen, online car buying websites can offer extensive reductions compared to buying in person. Of course, if you think you can do better there is nothing to stop you printing off the quotes you receive online and taking them to a dealership to see if they can beat the price you have quoted.
Many online dealers will offer special incentives such as bundling in insurance with the price of the vehicle and you can often have the car delivered to your door. Choice is also a key factor as you take your pick on a range of makes, models and specifications rather than just taking what the dealership has in stock.
The biggest concern most people have with buying a new car online is that you are effectively buying a vehicle ‘sight unseen’. However, this risk is reduced greatly when buying a new car as opposed to buying a used car as there shouldn’t be a large variation between what you receive and what is available at the local dealership. There’s nothing to stop you from heading to a local dealer and taking one of their vehicles for a test drive while you consider if the car you are buying online is right for you.
Friday, 30 January 2009
The Autocar Tyre Test
Chinese quality lags behind
Tyres are a distress purchase for many car owners, so when the time comes to replace them it’s no surprise that many motorists shop on price. But Autocar’s latest tyre test reveals that fitting budget Far Eastern tyres can seriously affect the way a car copes in wet weather.
Imported tyres from China and Taiwan currently account for one-fifth of all tyres sold in the UK, and although these pass the minimum ECE R30 high-speed test, there are no statutory tests for braking, handling or aquaplaning performance, and even the R30 test is considered inadequate by many car makers.
Autocar tested five leading budget brands – the GT Radial, Linglong, Nankang, Triangle and Wanli – against an established premium tyre from Continental. The magazine conducted its own tests for wet handling and braking, dry handling and braking and aquaplaning, plus a more stringent high-speed test.
Autocar senior tester Jamie Corstorphine said, “We expected the bargain tyres in this test to fall short of the Continental, but we were not prepared for just how poorly some performed.” With on average 200 days of rain each year, a wet handling and braking test is vital for learning about the capabilities of a tyre. Braking from 50mph, the Continental stopped in the shortest distance, followed by the Nankang, GT Radial, Wanli, and Triangle, with the Linglongs taking the longest to stop. Shod with the Linglongs, the VW Golf Autocar used for its tests was still doing 27.8mph at the point where it had stopped on the Continentals.
Overall the Continentals easily won, scoring top marks in all but one test. A consistent performance earned the GT Radials second place, but a wet lap time 3.4sec adrift of the Continentals indicated just how far even it falls short.
“Having seen how the five cut-price tyres in this test perform, we’re in no doubt that quality pays dividends,” said Corstorphine.
Continental £75.83
GT Radial £58.65
Nankang £55.20
Wanli £51.41
Linglong £52.44
Triangle £51.06
Tyres are a distress purchase for many car owners, so when the time comes to replace them it’s no surprise that many motorists shop on price. But Autocar’s latest tyre test reveals that fitting budget Far Eastern tyres can seriously affect the way a car copes in wet weather.
Imported tyres from China and Taiwan currently account for one-fifth of all tyres sold in the UK, and although these pass the minimum ECE R30 high-speed test, there are no statutory tests for braking, handling or aquaplaning performance, and even the R30 test is considered inadequate by many car makers.
Autocar tested five leading budget brands – the GT Radial, Linglong, Nankang, Triangle and Wanli – against an established premium tyre from Continental. The magazine conducted its own tests for wet handling and braking, dry handling and braking and aquaplaning, plus a more stringent high-speed test.
Autocar senior tester Jamie Corstorphine said, “We expected the bargain tyres in this test to fall short of the Continental, but we were not prepared for just how poorly some performed.” With on average 200 days of rain each year, a wet handling and braking test is vital for learning about the capabilities of a tyre. Braking from 50mph, the Continental stopped in the shortest distance, followed by the Nankang, GT Radial, Wanli, and Triangle, with the Linglongs taking the longest to stop. Shod with the Linglongs, the VW Golf Autocar used for its tests was still doing 27.8mph at the point where it had stopped on the Continentals.
Overall the Continentals easily won, scoring top marks in all but one test. A consistent performance earned the GT Radials second place, but a wet lap time 3.4sec adrift of the Continentals indicated just how far even it falls short.
“Having seen how the five cut-price tyres in this test perform, we’re in no doubt that quality pays dividends,” said Corstorphine.
Prices for a single 205/55 R16 tyre
Continental £75.83
GT Radial £58.65
Nankang £55.20
Wanli £51.41
Linglong £52.44
Triangle £51.06
Supplied by blackcircles.com and include valve, fitting and balancing.
Target a new car bargain
The economic downturn means many more car buyers will look to the second-hand market this year, says Which? Car – but it’s a great time to buy a new car too.
Eight per cent of drivers surveyed* by the car magazine said they will be buying used cars this year, while just 3% plan to buy new cars. Another 4% plan to change their car but don’t know whether to buy new or used – unsurprising in such a volatile market.
There are some incredible deals right now on new cars and the new issue of Which? Car shows a ‘Target Discount’** for new cars which customers should try to match or beat, whether buying online or from a dealer. Here are some of the biggest discounts:
Eight per cent of drivers surveyed* by the car magazine said they will be buying used cars this year, while just 3% plan to buy new cars. Another 4% plan to change their car but don’t know whether to buy new or used – unsurprising in such a volatile market.
There are some incredible deals right now on new cars and the new issue of Which? Car shows a ‘Target Discount’** for new cars which customers should try to match or beat, whether buying online or from a dealer. Here are some of the biggest discounts:
- If you’re buying a Fiat Grande Punto, aim to get a discount of 27% off the supermini (which could mean up to £3,800 off).
- You should target 28% off a Ford Focus (up to a £6,000 discount).
- A Ford Mondeo should be discounted by around 26% (a saving of up to £7,000).
- The luxurious Audi A8 should be available with a discount of 19% (saving up to £15,100).
- If you’re after a Citroen Xsara Picasso, aim for a 29% discount (save up to £4,900).
- A Mazda RX-8 which should be discounted by around 21% (saving up to £5,100 on the sports car).
However, the big issue with buying brand-new cars is depreciation – most cars lose thousands of pounds the moment they leave the showroom. A 2008 Vauxhall Vectra, for example, lost 53% of its initial value last year alone. Conventional thinking suggests that nearly-new cars (those up to 12 months old), or older used cars, offer the greatest value.
But Which? Car found that this isn’t always the case. Apply a 28% Target Discount to a brand-new Fiat Panda 1.3 Multijet, and it will cost just £6,488 - making nearly-new and three-year-old Pandas look poor value. The ownership costs over a three-year period vary by just £340, so in this case, buying new makes most sense.
Richard Headland, Editor, Which? Car, says:
“You could say there’s never been a better time to buy a car. The downturn has thrown the car industry into turmoil and that means there are some amazing car deals available - whether you’re looking to buy new or used.
“Most buyers will be going for second-hand cars this year to save money and there’ll be bargains galore in this market as supply outstrips demand. But bear in mind that if you can match our Target Discount, some new cars won’t cost much more to run than used cars.”
When to buy a new car
If you’re flexible over the time to buy a new car it will work in your favour – the more desperation you show to a dealer, the more likely you are to be stung by a poor deal.
December is considered one of the best times to buy a new car, simply because the majority of us are spending our cash on Christmas presents which leaves dealers devoid of customers. Many dealers and salesmen also have end of year targets to reach and so they might be willing to drop their price to secure your business.
Another good time to target car dealers are the months preceding the introduction of new car registrations. That is because most dealers will take on new stock as the new models arrive and so they will be keen to clear space. There are also many factory-to-dealer incentives which can reach thousands of pounds – it is worth haggling over these incentives to ensure you get a cut of the best deals.
December is considered one of the best times to buy a new car, simply because the majority of us are spending our cash on Christmas presents which leaves dealers devoid of customers. Many dealers and salesmen also have end of year targets to reach and so they might be willing to drop their price to secure your business.
Another good time to target car dealers are the months preceding the introduction of new car registrations. That is because most dealers will take on new stock as the new models arrive and so they will be keen to clear space. There are also many factory-to-dealer incentives which can reach thousands of pounds – it is worth haggling over these incentives to ensure you get a cut of the best deals.
New car buying tips
Though preparation and good research is the key to grabbing a competitive deal for a new car, it can all go wrong when the buying process begins unless you continue to act vigilant. This section of the car buying tips guide aims to make buying a new car easy.
Over the coming days we will offering tips and advice for first time car buyers, those looking for a used car and when the best time is to buy a new car.
Over the coming days we will offering tips and advice for first time car buyers, those looking for a used car and when the best time is to buy a new car.
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