34 FEATURE Car buying in austerity Britain
costs of your new car, there are all the running costs to consider. These break down into three key areas: fuel, servicing and depreciation. Usefully, CO2 output is directly
linked to fuel consumption, so if you’re picking a low-CO2 car, the mpg will be consequently high. However, it is worth paying close
attention to the details here, because even a 5% difference in fuel consumption on a 40mpg car over the average annual 12,000 miles could see a saving (or loss) of around £85. Servicing intervals are also worth
paying close attention to, particularly if you’re a high mileage driver. While almost all carmakers still come with an annual service schedule, the mileage may differ. So if you’re doing 12,000 miles a year and the service interval is annual or 12,000 miles, you’re fine. But if you’re doing 18,000 miles a year in the same car, you’re going to be visiting the dealer 50% more and your costs will be 50% higher. But if the service interval is
18,000 miles or annual, then you’ll still only be visiting the dealer once a year. Depreciation, however, is the largest element of running costs, assuming you’re going to be selling the car at some point. Where fuel may cost you £4,000-5,000 over three years for an efficient car, depreciation on a £20,000 car could easily cost £12,000 over the same time. This makes it vital to pick a car that depreciates slowly. It also makes the initial discount (assuming you can get one) more important. The only practical way to fix your depreciation cost is to enter a finance agreement, such as a lease. Yes, you can pick prestige cars, or lower volume cars, which generally command a higher used value, but they also cost more up-front so you have to be cautious. Prestige cars also tend not to come with large discounts up-front, too, unlike volume sellers. Indeed, if you’re truly into fixed
costs, then leasing or contract hire is the perfect route, but because this is a service and finance agreement, there will also be a margin for the leasing company. Assuming you are buying from a
dealer, rather than going to a leasing company, negotiating a discount is vital. Start by getting an idea about how
much you can expect to save by looking at What Car? magazine’s Target Price (
http://www.whatcar.com/). Then, if you like haggling, phone round a few local retailers and ask them their best price on the car you’re after: if you’re fair and don’t mess the dealer around, you should be rewarded. But the best discounts can usually be had by going in person to the dealer. If you don’t like haggling but still
want the discount then several manufacturers and dealers offer discounts online. One of the best Driving found
while researching this article was on Vauxhall’s site. Internet buyers were being offered £4,000 off the price of a £25,000 Insignia for doing nothing more than clicking online. If you manage to take advantage
of these tips, you should save a bit of money, a vital buttress against the rising cost of fuel that should help you to enjoy driving your new car.
driving | April / May 2011
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