HP agreements are secured against the vehicle, so tend to offer more attractive interest rates than those offered with unsecured bank loans, for example.
Cash, cards & loans
The days of cash being king are long gone in the new-car market and you may find the deals offered via this purchase method are less attractive than those available were you to take out a PCH or PCP deal.
Credit cards offer a level of consumer protection but have heavy interest rates. A bank loan with an attractive interest rate is another route. You’ll pay cash for the car, so dealer discounts are harder to come by.
Should I buy my car from a dealer or online?
It’s no longer necessary to set aside a weekend to make your way around 10 different dealers, test driving cars and negotiating the perfect price. Online brokers are growing in popularity, and without the overheads associated with sky-high showroom rents and huge workforces across multiple sites, they can often undercut the salesman on the franchised forecourt.
What’s more, buying from a broker doesn’t exclude you from the usual warranty cover and aftersales service – and many will offer manufacturer-backed maintenance plans.
But car makers are increasingly aware that customers are shunning dealers in favour of a simpler, less confrontational buying experience. It’s for this reason that many are moving (or have already moved) to an agency model, whereby they cut out the middleman and sell direct to the consumer. In doing so, the price you see is the price you pay; there’s no negotiation, and no high-pressure sales environment. For many customers, this will make buying a car much simpler.
Choosing the right car for you
The cars listed above are our considered recommendations, but they won’t suit everyone. You should spend time ensuring that the model you choose has the space, style, economy, and performance you need.
Once you’ve drawn up your shortlist, call round dealers to book test drives, and put the car to good use. Make sure you, and anyone else who will be driving it, is satisfied and can find a suitable driving position behind the wheel.
Take the kids along to ensure they can get comfortable, too, and that it’s easy to get child seats in and out. And if you have hobbies with specific requirements, make sure the car is up to the job.
How much is your car worth? Find out with our free car valuation tool…
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