Make the recession work for you by driving away a bargain motor
Wednesday 10 Jun 2009
Recession is depressing, there’s no two ways about it. The papers are full of stories about the tattered economy, and even if you manage to avoid them, there’s always someone ready with a tale of financial woe down the pub.
What’s more, most of us are feeling the pinch in some way, making the recession impossible to forget even for a second.
But there is a silver lining to the current economic situation. People generally stop spending when there is a recession, forcing companies to drop their prices to encourage consumers to part with their cash.
The cost of big-ticket items such as cars has therefore plummeted to rock-bottom levels, with some makes and models going for less than 50%of the list price prior to the credit crunch.
Your local car dealerships are probably offering some bargains, but it is worth shopping around first – if only to give you more clout when it comes to negotiating a final price.
Why not take a look at specialist new car websites such as broadspeed.com and honestjohn.co.uk to check out the deals on offer across the UK first?
For used cars, try online supermarket autoquake.com, which lists used car offers from around the country.
Car auctions
I my personal experience buying cars, I've always found the best way to get a feel for car valuations is to visit your local car auction.
Car auctions is where the trade goes to buy their stock to sell to you. Although you can buy there as well, it's not advised unless you are familiar with a car under the bonnet.
You will leave with a good feeling of the car market in general by seeing how much cars go at trade price compared with what ads tell you.
New cars cheaper than old ones!
After so many years in the motor industry, I never thought I would see the day. My advice to family & friends has always been - be smart, buy used. Let the manufacturer take the hit on the residual value & go for a high spec used motor, stocked with goodies. If you buy right that is & check out used car prices for free at sites such as www.whatcar.com/valuation/ . But in these troubled times, how things have changed. Even without the scrappage allowance, chances are that the price of a new car will be lower than the comparable spec nearly new or used model. This is thanks to the deep recession and the rust forming on car production lines around the globe. So gorge yourself - enjoy the manufacturer bonus & the dealer's generous part exchange allowance on your trade in. Right now dealers are craving fresh used stock, so take full advantage, whilst stocks last...