Choose a discount manufacturer
Who gives discounts? Generally the bread-and-butter brands such as Vauxhall, Ford, Renault, VW, Fiat and Citroen will move furthest from the list price. Prestige marques such as BMW, Audi and Mercedes are in the volume game too and will come down on some models, especially the big sellers. Mini and Smart won't. Alfa will, and by a large chunk. Volvo is another good bet, as are Land Rover and Jaguar. Surprisingly, Honda is one of the toughest.
Investigate discount servicing
Increasingly manufacturers are throwing in free or discount servicing for the first three years. It's either part of a campaign to kick-start interest in a car (eg Volvo with the V50) or to ensure customers aren't persuaded to get the servicing done elsewhere. Investigate whether it's worthwhile. For example Mini's TLC package for five years/50,000 miles is obviously a good deal at £150, but Chevrolet's 3yr/60k £499 price is less clear-cut.
Watch for crafty additions
You can sometimes find yourself with a final price that is much more than
you expected when you reach the till so there are a few financial extras
that you should be aware of.
The three to watch for are these. One: vehicle replacement insurance, aka
gap insurance at a typical cost of £200. Two: payment protection insurance
at typical cost of £200 or much more. Three: Supaguard, paint and fabric
protection costing around £160. Get the guy to untick the boxes and see
what a difference it makes.
Factor in depreciation
Cars lose money. New cars lose serious money. The price experts tell buyers to reckon on losing up to 50 per cent in the first year. However some are better than others. The smaller the car the smaller the percentage drop - superminis are always in demand as used cars because they appeal to the cost-conscious second-hand buyer. Premium brands such as Mercedes, BMW and Audi also perform well, but big petrol cars of every stripe lose a fortune every year of their life. Some of slowest depreciating cars are the Honda Jazz, the Mini, Mercedes SLK and Porsche Boxster.
