29th February 2016
With the brand new ‘16’ plate cars driving into forecourts on 1 March, more than a quarter of motorists, at 26%, are set to start shopping for a new motor in the next 12 months, planning to spend an average of £12,000.
According to the latest annual Car Purchase Index from The AA, which surveyed more than 26,000 motorists, the number of people intending to change their car this year is up from 20% last year.
This follows a record 12 months for the new car market in 2015.
Some 33% expect to use their savings to purchase their new car while almost a quarter, at 23%, of people plan to use a method of financing – the majority of which will opt for a personal loan.
However, some 60% of over-65s are much more likely to buy with savings or spare cash.
Michael Johnson, director of AA Financial Services, said: “A new car is a big purchase; particularly with the average spend hitting £12,000. Whilst savings are the most popular way to pay, you need to make sure you keep some back in case of emergency.
“Car loans can often be a better deal compared with dealer financing – rates can be lower, loans don’t impose limits on mileage and you own the car, which you don’t with a personal lease, for example.”
But some 70% of those planning to change their car in the next 12 months will buy a used model.
Top tips to negotiating a good price for your new car:
If you’re not happy with the deal or something doesn’t feel right about the car then walk away