How to buy the best new car

Cars

How to buy the best new car

By Daljinder Nagra

Article 1 of 4

Buying a new car doesn’t have to be complicated. This guide explains the key things to consider in five steps, so you can buy the best car for your needs.

Shopping for a brand new car can – and should – be an enjoyable and exciting experience. If you don’t mind waiting for the factory to build it, it’s your chance to tailor your new car to your exact tastes, choosing everything from the seat fabric and colour of the paint to the type of engine and gearbox.

You might not have to wait, either: dealers often pre-order cars in popular colours and trim levels, so you’re able to drive away just as soon as the deal is done and the car has its number plates.  

But, with several thousand pounds at stake, you want to be sure you’re choosing the right car in the right specification, and getting it for a good price. This guide sets out the five key steps to ensure you do just that.

Want to just start browsing the best cars you can buy? Take a look at all our Best Buys.

Step 1: Consider your needs

Even if you think you know what kind of car you’d like to buy, it’s still worth considering your needs – you may find that the car you want and the car you need aren’t quite the same thing.

For example, while you may like the looks or high driving position of a 4x4/SUV, all-wheel-drive is rarely necessary in the UK unless you live in a remote rural area or regularly go off-road.

And while you may like the idea of buying a car from a ‘premium’ brand such as BMW or Lexus, you may find you can get all the refinement and features you need from a more mainstream brand – and at a lower price.

We recommend you write a list that prioritises what you want and need a new car to do – and that should include an idea of how much you’re willing (and able) to pay.

How much can you afford to spend?

Cars are expensive – quite likely the most expensive thing you’ll buy aside from a property – so it’s vital you don’t spend over the odds, or over-extend your finances.

Make an honest assessment of your available budget, bearing in mind that although a finance deal may make a car more affordable in the short-term, paying ‘cash’ upfront is often the cheapest way to buy one in the long run – read our car finance explained guide for more detail.

As well as the initial purchase price, remember to factor in ongoing costs such as fuel, car tax, insurance, servicing and depreciation (more on the latter below). Then compare like-for-like with pay-monthly finance deals, as they may include some of these costs.

Top tip: All of our expert, impartial car reviews include realistic fuel economy figures taken from our rigorous tests, so you can use these with our petrol vs diesel fuel calculator to work out your fuel costs per year.

Step 2: Do your research

Once you’ve narrowed down what you need the car to do – and any other criteria, such as looks or brand – it’s time to start researching the suitable models available in your price range.

A good first step is to read our in-depth car reviews. You can filter these according to starting price, brand, and all sorts of features, from body style to the number of doors.

Or, if you think you know what type of car you’d like – such as a small car, 4x4/SUV or estate – you may like to skip straight to our Best Buy shortlists, where we’ve collected together all the best cars in each class.

To help you understand what to look for in each type of car, we’ve also created buying tips for all the most popular car classes.

And if you fancy a car from a particular brand and would like to learn more about what it has to offer, both in terms of its car line-up and brand reliability and satisfaction, have a look at our brand guides.

Top tip: Most of our car reviews, especially those of popular models, include unique reliability data taken from the annual Which? Car Survey – the UK’s largest, with feedback from more than 67,000 drivers in 2016. We've also rounded up all the most reliable cars in each class.

Step 3: Draw up a shortlist (and don’t forget about depreciation…)

Done your homework? Good. Now you can compile a shortlist of the cars you’re most interested in and – we highly recommend – contact local dealers to book in some test drives.

Some brands offer 24-hour or weekend-long test drives, so don't be fobbed off with a 10-minute spin round the block. A car that looks good on paper won’t be if you can’t easily get in or out of it, or you don’t like the way it looks or drives.

Before you start test-driving, though, don’t forget to consider depreciation – this is where the value of a car drops as it gets older, which is usually unavoidable unless you’re buying a sought-after classic.

Understanding depreciation

In simple terms, the longer you keep a car, the less it will be worth if you sold it – and some cars depreciate much faster than others.

Depreciation is a major cost when buying new – whichever car you choose, depreciation is likely to account for more than half of your running costs over the first three years – but it’s irrelevant if you keep your car until it wears out.

However if, like most people, you’re likely to want a new car before your old one is ready for the scrapyard, try to buy a model that depreciates slowly. Unfortunately, there is no hard and fast rule about depreciation – it can affect expensive models from premium brands just as much as a cheap car from a mainstream brand, and the sums involved – the amount you ‘lose’ – can be much higher.  

Step 4: Choose where to buy and how to pay

While you may be more familiar – and comfortable – with the idea of visiting your local dealer to buy a car, it’s now possible to buy a new (or used) model entirely over the internet or over the phone.

There are pros and cons to both buying in-person and remotely, so we recommend you read our guide to where to buy a car to help you decide what’s best for you.

The right way to pay will also depend greatly on your circumstances and the deals on offer at the time of purchase. To learn more about payment and ownership options – leasing (renting) a car is increasingly popular and affordable – take a look at our car finance explained page.

Top tip: Some dealers and brokers sell ‘pre-registered’ cars, which are often attractively priced with discounts of as much as 30%. However, buying one could mean a shorter warranty (it starts as soon as the car is officially registered, which could be months before you buy the car), and you’ll technically be the second owner – the dealer who registered the car will be the first.

Step 5: Shop around and haggle hard!

A key advantage of online (or phone) car buying is the ability to compare prices from dealers all over the country without necessarily having to haggle with them yourself. Depending on the car-buying service or broker you contact, they will have either pre-negotiated discounts from dealers, or will do it on your behalf once you’ve told them what car you’re after.

Even if you’d rather buy locally, do collect quotes from several sources as prices vary enormously across the country – and you may find your local dealer will match or beat a price to secure a sale.

How to haggle

If you are buying in person at a dealer, go well-prepared. That means knowing (ideally) the exact model, trim level, engine-specification and options you’d like, and how much you should be paying.

And remember: the price you see in the brochure (or stuck to the windscreen), should be viewed as a starting point for a negotiation with the salesperson.

The sales team nearly always has some room to manoeuvre on price, so push hard for a discount and if they don’t offer one (or some sort of other incentive, such as free servicing or desirable optional extras) be prepared to walk away – there’s always another way to buy your perfect new car.

To learn more about haggling, including examples of what to say to maximise your chances of getting a discount, read our guide how to get the best price on a car.

Ready to start car shopping? Head to our Best Buys page to see the cars that excelled in our rigorous tests, or simply browse our reviews of more than 700 new and used cars.