Buying a brand new car is easily the most expensive way to get on the road. The biggest hit your wallet will take is depreciation - you'll lose thousands as soon as you drive it away from the showroom. And using finance to buy it will cost you more still.
But there are of course up-sides, so if you're buying new, here are a few ways to cut your costs.
First, thoroughly check out all the deals - not just at your local main dealer for the car you're looking at, but see if you can find another within a reasonable distance and challenge them to do better for you. Just ensure both dealers aren't owned by the same large dealer group.
But there are many other options than just your local dealers. Everyone wants to sell cars these days, even supermarkets, banks and insurance companies. Check out what they can offer to supply direct. There are also many internet sites offering new cars direct at savings off the list price - see a list on our motoring links page.
Sifting through all the possible sources for the car you want might take a bit of time, but it's easy and you can expect to save several hundred pounds for your effort - probably at least five hundred and potentially considerably more.
Second, never buy on impulse. Might sound obvious, but being tempted just a step or two up the model range by a salesman while doing the deal won't only increase the purchase price but potentially add hundreds to your ownership costs too.
For example, according to What Car magazine, the difference in running costs between a Toyota Yaris 1.0 T2 and 1.3 T3 is 3p per mile. Doesn't sound much, but over a likely 3 year ownership of average 30,000 miles that's £900 you could have spent on something else.
Using this effect in your favour, moving down the range from your chosen model will save you some serious money every year. The difference in running costs between a Vauxhall Astra 2.0 and the 1.4 model is a surprising 17p per mile. The lower purchase price, road tax band plus better fuel economy adding up to a very handy £5,100 saving over a typical 3 yr / 30,000 mile ownership. You might fancy the more punchy 2.0 litre car, but is it really worth it?
Looking between the car makers, the running costs of small family cars like the Ford Focus, Citroen C4, Honda Civic and Vauxhall Astra - of similar engine size and specification - varies between 32p and 37p per mile. Choose the right one and you save a useful £1,500 over a normal three years of ownership.
So study the cold, hard facts of pence-per-mile running costs for the makes and models you like and decide which model specification suits you best before visiting dealers for test drives, and certainly before doing a deal. Don't be easily persuaded out of your decision.
Third, don't be tempted to add lots of 'valuable' optional extras to your car. You'll likely hike the price by thousands, yet only certain extras - like metallic paint, air conditioning, leather seats and sat-nav - will make any difference to the value of your car when you come to sell. Alloys are also a definite plus on mid-range cars upwards. On small cars however, while they'll make a car look a bit special and so easier to sell, alloys won't make much difference to the resale value. Parking sensors and heated seats have also been shown to add value at resale. But don't expect to ever get back what you paid for these options new.
Fourth, think about road tax. For cars registered before March 2001, go over 1549cc in engine size and you'll pay £65 more in tax every year. So do you really need a 1.6 litre car when a 1.4 or less might do? For cars registered from March 2001 onwards, tax rates depend on exhaust emissions and vary by up to £170 a year. Even similar sizes and types of car can fall into different tax bands. So check the emissions figures for the cars you're considering and add another annual saving by choosing a lower band car.
You can see full info about current car tax rates on the DVLA website, and find out the emissions rates of cars currently on the market at CarFuelData.org.
Considering these factors and making the right choices could mean you end up with not just a new car but also enough cash left in your pocket for a new telly or a good holiday.
