How to get the best price when buying a new car?

In the past when buying a new car, there were few options. However now, there are a number of options and it can be confusing as to which will ultimately be best for your circumstances. There are two main ways to buy a car.

Buying outright

When you buy a car outright, you own the vehicle. You may fund this through cash savings you have or you may take out a loan, use a credit card or a combination of these things.

To buy a car outright, main dealers are of course the first port of call for my people. However an up and coming way of buying a car outright (at a cheaper) price is to use some of the websites which do the bargaining on your behalf and the arrange for a main dealer to supply the car to you directly.

Contract hire / lease

With contract hire, you do not own the car and instead are hiring it. Much like you might hire a car when on holiday, but with this it is much longer term – typically 2 or 3 years. Contract hire is the most popular type of car leasing.

To get a car via contract hire, there are a number of companies who specialise this – both based offline and a growing number online. Main dealerships will also supply cars via this method.

Which is cheapest?

Historically, if you wished to buy a brand new car, planned to keep it for 3 years and had the cash available, buying a car outright was the cheapest method of car ownership . However in recent years some very good deals have become available contract hire . The new car ownership the biggest cost is depreciation, so to work out if a particular contract hire deal is better than buying outright, you need to look at the total costs over the ownership period (typically 2 or 3 years).

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