With one week to go before the new 71 number plate arrives on dealers forecourts, many will be looking to snap up one of the latest models. Yet the arrival of the new plates affects used car purchases, too.
Auto Trader has revealed that used car prices had increased 15% year on year, one of the UK’s leading used car selling sites. With prices rising and the used motor trade booming, is there still a chance to save money when picking your next car?
As motorists trade in their used cars for a new one, dealers with abundantly used stock often reduce prices for quick sales. Due to part exchanges, September is generally the best time to bag yourself a bargain.
A recent study by Confused.com found that the average age of cars on the road in the UK is 8.4 years, with millions of motorists fueling the used car boom. There are many reasons why drivers opt for a used car, including:
- You don’t lose as much money to depreciation as you would if the vehicle was new.
- Manufacturers sometimes run schemes with dealers – great if you’re looking for a specific model.
- Some dealers offer a warranty period on their used cars.
- Often cheaper than buying a new car.
Alex Kindred, car insurance expert from Confused.com, explains why motor brand loyalty or holding onto a car for too long could be hurting our pocket.
“Owning an older car may seem cheaper at the point of sale, but owning a used car or staying loyal to your brand can often cost you more, further down the line.
Motorists who stick with the same manufacturer year after year could be worse off as the natural value depreciation could leave them out of pocket. But there are some other ways that loyal motorists could lose out.
“Motorists with an allegiance to a particular make usually spend less time searching for a new car, visit fewer dealers and spend less time comparing prices. For example, if you are a Nissan driver, as soon as you drive onto the forecourt in your current Nissan, you are signalling brand loyalty to the salesperson, which could mean you have less bargaining power to negotiate the price down.
“It would be wise to keep the make and model of your current car secret from the salesperson until negotiations are complete. If you give the impression that you will compare prices and visit other dealerships, you may end up with a better deal.”
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