coolcarsblog.co.uk

So we have a potential buyer looking for a new car to buy before the Christmas and New Year festive season. What does he do then if he wishes to buy or reserve a car online? Firstly then the user will have to decide upon the type of car that he wishes to purchase. The relevant research will then need to be carried out in order to find the vehicle in question and to find a Website that he can trust. Upon finding the selected the chosen one, they will normally have a few options; telephone the dealer direct, contact the dealer via email or reserve the car online by paying a small deposit using a payment system such as World Pay. Most people will indeed contact the dealer via telephone as buying a car; whether it be used or new is a quite a big purchase. Therefore by hearing someone else’s voice on the other end of the telephone provides a comfort that can help smooth through the purchase. So what about the car finance then? Well, many Websites offer finance to customers via a separate section or page that requires them to fill out an online application form. However, the dealer selling the cars can also offer a package, which would provide both convenience and less hassle. More advanced systems can sometimes be found where the cars stock number is built into the car finance application form and so unbeknown to the user, they obtain finance from 2 totally separate sources. However, the process is so smooth that it doesn’t affect the purchase or finance application in any way. Once both processes are complete, the buyer will then be contacted by both the finance lender and the car dealership. The process is then completed. This is quite a common series of events within the used cars market as many of the dealerships provide their vehicle stock to various third parties in order to get optimum exposure online. In fact, what you will notice with many of the used car Websites online is that many of them in fact provide the same search results as one another. The reason for this is that a big company such as Bristol Street Motors will provide their stock of cars to these sites in the way of an automated process that issues the latest deals and prices on a daily basis. Therefore this ensures that the Internet user is kept up to date and has access to all of the latest cars being made available for sale by the industries main players.

I have a slight dilemma. With me currently being in the market for a new car, I have found two that really tick all of the boxes; a used Vauxhall Vectra and a used Vauxhall Astra. The only problem is that the Vectra is way up in Scotland, which is like a 4 hour plus drive from where I live. Whereas the Astra dealership is only just over an hour’s drive away. However, the Astra is a bit more expensive and ideally I want the Vectra as it has a bigger engine and looks more elegant. This is the problem with smaller car dealerships; they do no deliver or if they do – it is at an extortionate cost. However, because they are more desperate for business and the fact that they only sell used cars means that there is more room for bargaining with them. However, a four hour plus drive all the way up to Scotland for the sake of a few hundred pounds; is it worth it? I’m not so sure. Maybe if it was a brand spanking new Audi R8 it may not be as much of a problem as I would no doubt look forward to the drive back. However, this purchase is only for getting from A to B and will be used for work alone, which makes it even more of a pain! However, due to the line of work that I am in – a used vehicle must be purchased and so I do not have the choice of many different cars. I do like the Astra from Vauxhall but it isn’t the new shape, it is the older version (before anyone questions it!). Therefore I suppose the questions is; is driving all that way necessary in order to get the car that I want even though it is slightly more. Plus when you add the cost of petrol for getting up there and then the return journey, it makes it even more costly. Buying cars is just not easy anymore is it?!

My previous blog entry explained some of the common ways to try and save money on car insurance. So what else is there then? Well one that I didn’t mention was that you should look out for what type of car you are buying. For example soft tops / convertibles mean higher premiums. Why? Well from the lenders point of view it makes the car appear sportier than normal cars and therefore the driver and / or passenger are viewed as being more likely of being involved in a car crash. Therefore, if you wish to save money, always look at the car being purchase. Obviously the bigger the engine, the bigger the cost also but think is common knowledge among buyers anyway. Another option for saving is coming into fruition only of late as comparison sites have dominated the online car market for the last few years. However, it appears that the main car insurance lenders are now promoting that it could be cheaper for someone to come directly to them instead. Think of that what you will but it is a consideration that should be made. Another thing to consider is buying an older car. For example, insurance premiums decrease once a vehicle is more than five years old and again when it is ten years old. Therefore, buying older used cars could also be of benefit and could save you money. The reason for this being that these types of used cars are older, which means they are of less residual value and so this equates to cheaper rates. By having a pass plus certificate can also help cut insurance premiums but not all insurers actually ask the question so this isn’t a vital option to put in place. Finally, and one that isn’t exactly possible overnight is to get older! Yes, the older you are, the better the premium offered. Buying and insuring cars for people under the age of 21 can sometimes be quite difficult but it is these people that the lenders deem a risk; younger drivers with less experience. So, hurry up and get to 21! Once you are there, 25 is the next benchmark followed by 30 and then finally 50! By then, you shouldn’t be paying much……depending upon your current car type, engine size, amount of no claims bonus, previous claim history etc!

Me – I am an avid purchaser of second hand cars. Why? Well, I suppose it comes down to personal choice and opinion really and I am certainly of the opinion that used cars provide not only better value than new cars but also better performance as they have experienced the road and have had chance to have their engine worn in. Of course, there are different levels to used cars and so I am not talking about those that are five to ten years old. No – I am talking about nearly new cars that are maybe six months to one year old. These in my opinion are the ones that provide the best value; cars that were only brand new a few months previous, the engine has been worn in, that new car smell is still present and the car itself is still well within the “new” category among the manufacturers and buyers. As we know, any new vehicle that is purchased immediately loses around 17.5 percent of its value the second it is driven from the car showroom. So, immediately its residual value decreases, which is good for us used buyers. Now if you are a little bit clever – the ideal cars to purchase are those that are taken on short term leases by people who actually given the car back to the dealership within a certain amount of months (avoid business users though as the mileage that they can accumulate can be extraordinary) and then jump in with an offer. Or, better still, keep a close eye on the car showroom forecourt and look out for vehicles being returned from owners after they have decided not to go through with the purchase. In some cases, people are given a trial period for the car in which they can bring it back in to the dealer if they are not satisfied with its performance. But, upon being give a new vehicle, by the time it is returned, it is used, which makes for a cheaper price. Another really sneaky way of buying used cars is to purchase a test drive vehicle that has only been used for testing. This way, the price can be even cheaper. All in all then – in my opinion, used cars do indeed provide a better value to the customer than new cars simply because of their price. Whilst it would no doubt be nice to have a brand new vehicle on the driveway, I’m afraid the depreciation value that it brings would be too much for me.

The thing about collectable cars is that whilst they are no doubt invaluable to many car enthusiasts, the fact that in most cases they cannot be driven (not road worthy) in a way kind of contradicts their purpose! Don’t get me wrong I can certainly see the attraction of having an old 1900 car that will be used as an ornament in someone’s garage for example but if you cannot drive it then surely it is a waste of an attraction? I’m sure there are some of you out there now that are reading this and thinking “what is he going on about, h hasn’t got a clue”. And for that all I can say is that I do understand – but collectable cars for me, are just, well not for me! If I had the money to purchase such cars then, given my way of life, I would spend it on a vehicle of the modern era because they probably cost the same. In fact the op level cars of today more than likely cost less than some of the ancient collectables. Also, I am someone that is paranoid about buying used cars as it is so god knows what I would be like with something that is older than me! Ok, let me put it like this – if I had extornionate amounts of money I may, just may buy a used Jaguar XJ220 – not quite a collectable car but one that, in its heyday was one of my favourite all time cars. Then again, an old Ford Mustang might creep its way into my garage also if I was engaging in a buying spree. Am I suddenly starting to change my mind? Hmm not really guys – I would just much rather buy a brand spanking new 3 litre Audi or BMW. In fact, with the money that I would have for collectable cars – I could even reach out to the Austin Martin of Lamborghini models!

I must admit that this is probably my all time favourite mid-range automobiles – not just from Audi – but from any of the car manufacturers. I think that it is absolutely outstanding. I always liked the A5 but due to it being such a big car, the minimum 3.7 litre engine was required in order for it to be a force on the motorway. Now, like the previous whirlwind the R8, Audi have released an ‘S’ version of the model. So, my dilemma is this; I was never going to afford to buy a brand new A5 model and so was waiting to be a used one when they became available. However, having looked at the S5, I am debating whether or not to wait for a used version of this instead? Obviously a second hand S5 would be more to my liking but I do have to think about price, car taxes and insurance premiums etc. Whilst a brand new purchase is probably a little bit out of my league, buying a nearly new isn’t. The only thing that I have against used cars of this type is that you never know how the previous owner treated the vehicle. I mean even though it is an ultra fast car, I very much doubt that I would over rev or push its speed to the absolute limit. In fact I would take great care to ensure that it was well looked after both for me and the next owner. We all know that Audi make exceptional cars that are built to withstand a lot of pressure and speed but knowing that it has been used by someone else just makes me want to buy new instead. But, again the problem of finance kicks in and so I get brought right back down to reality! So in answer to the question of which type of car to buy; a used A5 or new A5, unfortunately it all depends on what you can afford. This time, for me – it looks like I am going second hand.

I have a friend that bought a 2004 used BMW Z4. Whilst he absolutely worships the wheels that it sits on he realises that in order to keep in line with the market, he will need to upgrade. So, given the fact that he enjoys the ride of the BMW so much, he is not going to upgrade the car make or model, just the year of registration. Most people when buying a new car actually change the manufacturer or model simply because they would like to try a new experience. However, given that the car in question was only bough fourteen months ago and the fact that he has had no problems with it whatsoever strengthen the case not to change. We all know that new cars operate at a huge loss when driven out of the car showroom and that used cars seem to offer that little bit more in way of keeping the residual value. However, with the vehicle manufacturers releasing new versions of cars on a regular basis, even the used cars driver can struggle to keep up. As it stands my friend stands to lose around £4,000 if he does go ahead with his upgrade purchase. In return he will be getting the exact same BMW Z4 albeit a different colour and a 2008 registration plate. All in all, it doesn’t seem that bad a deal given that the average car will lose around £3,500 per year in value anyway. Therefore the fact that he is changing cars now show that even with used models, if you stay ahead of the game, the financial losses do not have to be so crippling. The fact that this time next week he will be driving a nearly new car, which has just over 2,000 miles on the clock, presents a good deal and good value if you ask me. Of course, there is a little bit of time and research needed to try and stay in touch with the car market but the money saved will prove to be a good bonus to those wanting to put the work in. Buying cars can sometimes feel like a difficult task but with the introduction of the Internet – thing just got that little bit easier.

With the current car market having been under the cosh over the last few months so to speak, I had a little brainwave and thought about visiting my local Audi dealership to see whether or not I could get a used Audi R8 at a reduced rate. How wrong I was. I guess just some cars keep their value better than others and I suppose the two year waiting list kind of sums up the demand. See where there is demand – there are expensive prices as it means there are a lot of buyers wanting to purchase. From what I could gather, the same applied to the Audi TT in that its overall resale value hadn’t really been affected by the credit crunch. In fact, from what I could gather from the car salesman, although their used cars section of the business had been operating at slightly less numbers, overall car sales were not at too much of a low. Many put this down to the strong brand that Audi has these days and their popularity among auto enthusiasts. My assumption that I could just go in and use the current market situation to my advantage were quickly squashed, especially when the car showroom was flooded with customers and most of the salesman were conducting new business. I guess it’s back to trying to save up that £80,000 for the purchase.

Has anyone else been surprised by the amount of new 58 registration plates on show? At first I thought that things may have started off a little bit slow but we are half way through October 2008 now and although there has been a definite increase over the last few weeks, there is still much less than there normally is. I remember over the last few years on both the 1st of March and 1st September the amount of new cars that hit the road. Now, though it seems that although there are still a fair number out and about, used cars seem to be the more popular (and affordable) choice among car enthusiasts/buyers. This is obviously as a result of financial pressure due to the climate and so I suppose it is to be expected. Many local dealerships selling new and used cars have had to cease business as the amount of people buying is much less than it was. Also, the fact that property prices have also decreased means that dealers cannot afford to use their equity of their property as a way of affording a business base. But in terms of new vehicle registrations, maybe March 2009 will see an increase at a level more than in September. By then, it may be that the financial situation has picked up a little, which will no doubt impact on the car market and other industries. Also, with the introduction of new designs being made by the car manufacturers, it may just help new car sales that little bit more.

So I finally got around to visiting my local Honda dealership and was pleasantly surprised to see the reduced prices of certain vehicles and the fact that there were many different promotional offers on display. I thought to myself at this point that I would almost certainly get a cracking deal on a new car and proceeded to search through the different cars on show. I kind of like the new Honda Civic Type R that was sat on the courtyard. Full leather interior, a few little smart gadgets on the dashboard and the metallic paint was my ideal colour; brilliant red. The alloy wheels were 19 inchers, which gave the car a more robust and solid look. I particularly liked the rear of the vehicle and more specifically the rear spoiler, which has a totally different look to that of the older version. I got chatting with one of the salesman and discussed the possibility of part ex on my current car. Having looked at it intently, he gave me a price, which I must say was at least £1,500 less than what I thought I would get. He proceeded to explain that the cost of used cars has indeed decreased over the last month of two and that if I were to search around other dealerships, a similar price would apply. It was at this point that my day suddenly turned a bit sour as I was very excited about maybe purchasing the Civic. However, in the end I declined the salesman’s offer but did take him up on the advice that he gave me and visited a few other car dealerships to get a different point of view. Whilst some of them offered slightly more for my vehicle, overall the same price was quoted. Some were more, some were less and some of the dealerships actually offered exactly what the chap at the Honda garage did. Maybe I will wait a little bit longer…..