Brits love their cars and they love to show them off – especially if it’s a new one with the latest registration plate. It’s a tradition that stretches back to 1963, when the original ‘suffix’ plates were introduced. Ever since then we’ve had a ‘year identifier’ that marks out when a car was first registered.

Until 2001 we got one identifier per year, but when the current registration system was introduced we got two for each year; one for March and the other for September. As a result the previous single spike in new car sales became two, the March one being the bigger (and more popular) of the pair.

With that in mind, we’ve just had the biggest spike in new car sales that we’ll see this year, so from here on until early 2017, dealers are going to have to work harder for your money. Which is why now is a great time to go shopping for that new car.

Manufacturers have to keep churning out cars even if the demand isn’t really there for them; it’s no good running a factory at a fraction of capacity. To move those cars on, dealers are given targets and quotas, with plenty of incentives to keep shifting metal. Some marques have to work harder than others to shift stock, but even the premium brands have to try harder than you might think.

When shopping for your new car, your mission is to secure the best discount you can, which means haggling hard and not being taken in by the salesman’s sob stories about how tight his margins are. But be realistic, as dealers generally make most of their profits from selling used cars and doing servicing. With most cheaper cars the margins are unbelievably small, which is why the bigger the car, the bigger the discounts available.

Pre-registered cars

We told you all about pre-registered cars  in our blog late last year, but as a quick reminder these are cars which a dealer has registered to itself in a bid to make it look as though they’ve sold more cars than they really have.

Most pre-registering takes place at the end of the month to hit sales targets, and with March getting the stiffest targets of all, now is the time for you to take advantage of this pre-registering spree. Those cars have to be sold on at a sizeable discount, but when they’re gone, they’re gone. With the start of March already history, many of the best pre-registered bargains may have already found new homes.

Of course you might not want to buy a pre-registered car; you might prefer something that’s brand new and built to your spec. If this is the case you can still turn those sales targets to your advantage by shopping towards the end of the month. Your new-car purchase could make the difference between the dealership achieving their targets or missing them.

As a result, if your deal is crucial the dealer can afford to offer a bigger discount. Admittedly it’s a bit hit-and-miss, as you don’t know what their targets are or how close the dealer is to achieving them. But shopping towards the end of the month is more likely to secure a discount – and remember that you need to try several dealers because they’ll all offer different prices depending on their targets, bonuses and how much of a hit they’re prepared to take on their margin.

Buying the right car

It’s often said that there’s no longer any such thing as a bad car and to a degree that’s true. All new cars come with a certain level of safety, refinement, performance and comfort but some are still better than others. That’s why some are more in demand than others and as a result some retain their value better than their rivals.

What you don’t want to do is rush in and buy a car thinking you’re getting a great deal, only to find that you’ve bought something which is worthless after just a couple of years. This is where doing your homework can pay dividends, because if cars are problematic, have an image problem, or are costly to run they tend to shed value at a greater rate than cars which have a stronger image and are easier to own.

This is why you need to scan the owners’ forums, read what professional reviewers have to say, talk to your friends – just gather together as much information as you can before committing to purchase. It’s only by doing this that you can reduce the chances of being stuck with a lemon.

The cost to change

It doesn’t matter how big the discount is on your new car if you’re offered a paltry trade-in for your old one. What matters is the cost to change, or the difference between the price of your new car and the value of your old one. This is why you need to use this figure when comparing the deals available, and also ask what the best price is for your new car if you sell your car privately instead. If your car is an old banger it’ll just be a pain for the dealer taking it in, but if it’s a cherished, desirable car that’ll be easy to sell on, the dealer will be much happier to take it off your hands.

The key – as ever – is to shop around. Don’t assume that the first deal you’re offered is the best available. Compare deals available from a range of dealers, check out alternative sources of finance if you’re not buying outright and create a shortlist of possible cars rather than singling out one specific model. That way you can investigate a range of possible deals and then work out exactly which is the right one for you.

Over the coming weeks we’ll be offering you further tips on buying a new car, from working out whether petrol or diesel is best to creating a shortlist of suitable models. Stay tuned to make sure that when you’re ready to buy, you get the best deal – and the right car – for your money.

Richard Dredge

March 2016