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With economic uncertainty on the horizon for the foreseeable future, and car sales plummeting after the start of lockdown, 2020 might not seem like a good time to buy a car.

Buying a car in 2020: my experience of visiting a Covid-secure dealership

With economic uncertainty on the horizon for the foreseeable future, and car sales plummeting after the start of lockdown, 2020 might not seem like a good time to buy a car. Even for the lucky ones whose finances have not been affected by the pandemic, there is still a certain level of anxiety associated with the process of buying a car in these strange times; visiting multiple dealerships, speaking to sales advisors indoors and at close distance, and test-driving vehicles that have been touched and sat in by dozens of previous customers can be daunting, especially for those who have additional health risks.

Last week, my partner James decided to upgrade his car; partly to reward himself after starting his career as a junior doctor during one of the most challenging periods faced by the NHS, and partly because his Skoda Citigo, a practical and reliable companion during his student days, no longer satisfied him in terms of power and speed. As an aspiring motoring journalist, I was curious about the way car dealerships were dealing with the pandemic and creating a Covid-secure environment for their customers, so I decided to follow James’ journey and find out what it’s like to buy a car during a pandemic.

Like most other aspects of life these days, the initial stage of the process had moved into the virtual sphere; while browsing around for cars, we noticed most recent listings included video tours of the vehicle as well as photos. This meant we could avoid doing too many in-person visits, only making a trip to the dealership once the final choice of car had been made. After a few weeks of browsing, James eventually settled on a 2017 BMW M240i which was on offer at our local dealership, Rybrook Warwick.

After the car had been chosen and the budget calculated, it was time to visit the dealership for a test drive. We were, of course, both wearing masks and carrying hand sanitiser in our pocket, but I didn’t know what the experience would be like after almost six months of being cooped up in our flat with nowhere to go except the supermarket and the hospital.

My concerns disappeared once we walked through the door; the dealership had a well-functioning arrangement in place, with Plexiglas screens everywhere, a one-way system for getting around the building and hand gel dispensers at every corner. The sales advisors were all wearing masks and kept distance with each other as well as the customers, despite neither being a legal requirement for employees in the workplace; even the furniture had been rearranged to create a two-metre gap between chairs.

The test drive was similarly Covid-secure in all aspects. The car had clearly been deep-cleaned and sanitised since the last prospective buyer had viewed it, with not a single fingerprint visible on the shiny interior trim. Even the smallest of details had been considered; the keys were wiped down with disinfectant before being handed to us, as was the pen James used to sign the paperwork.

We finalised the purchase on the same day and picked up the car later in the week, sealing the deal with an elbow bump. By the time we drove off and headed home, my anxiety over picking up the virus had been replaced by excitement over the new car.

Buying a car might not be the first thing on people’s minds at this time, but for those who are spending their time in lockdown looking for new wheels, the dealership’s (or private seller’s) approach to Covid safety should be taken into account just as much as other factors, no matter where your dream car is coming from.

Just like buying, there are a number of different ways to sell your current car. Many of us opt for the simple route, which is to simply part-exchange / trade it in when buying or leasing our next car. Whilst this is very convenient, you can sometimes actually get as much as 10-15% more if you sold it privately instead.

This is by far the simplest and most popular way of getting rid of our unwanted vehicles. Nearly all dealers have a part-exchange scheme, where they offer to buy your current vehicle from you as part of the package when buying your next car from them. This means you simply hand them the keys, and they will knock the price off the cost of the new vehicle.

Even if your current car is damaged, needs servicing or just needs a good clean, the dealer will simply give you what they think it’s worth. Always shop around though, as some dealers are more generous than others. Having said that, you’re still much better off trying to sell it privately, as you will get a lot more for it. Remember, the dealer will want to make a profit from your vehicle, and so you’ll be getting less than market value for it.

This is the most time-consuming way to sell your car, but it can pay dividends. You can get top whack for it knowing there’s no middle man trying to make a profit on top of your own.

It’s important when selling privately to keep the car in good condition. If you have a viewing, make sure it’s clean, inside and out. Spotless. If the car looks like it’s been looked after then people will be more likely to want to buy it off you.

Remember though, you’ll need to pay for online adverts on sites like AutoTrader. These are great as they can attract customers from all over the country, but bear in mind that many buyers will filter-out private sale vehicles, so you won’t have access to a lot of the buyers in the market that the dealers will.

Also, buyers will generally want to pay less buying privately due to the added risk involved, so you may not get as much as similar cars being sold by dealers. It should still beat any part-exchange price though.

Once online, be prepared to go on test drives and also be annoyed by time-wasters, especially if you have a desirable car. And the most important thing is to make sure that anyone driving your car on a test drive brings proof of insurance. The last thing you want is someone writing your car off before you’ve even sold it. If you are lucky enough to make a sale, ensure all funds clear completely before handing over the keys and the vehicle log book.

You know those companies who claim to “buy any car”. There are now a huge number of them that will give you an instant valuation for your vehicle. You simply enter your vehicle registration and mileage and it will give you a figure. Be wary though, the amount they offer is usually significantly less than even that which a dealer would offer, and is also usually subject to vehicle inspection. Expect even more to be knocked off if there is any damage, faults or the condition of the vehicle is not as expected. There is often an administration fee to be paid as well, so factor this into the final sale price. As a general rule, use these websites as a last resort, or if you’re in a hurry to part with your vehicle.

This is a more risky way to sell your car as you don’t know beforehand the amount you’ll be getting. You pay an entry fee, usually in the ballpark of £30, and then set a reserve price. If you manage to get a sale then the buyer will pay for it immediately. Remember, you’ll have to pay the auction house some commission, often around 10% or so. Many of the buyers at auctions tend to be dealers themselves, and they will be looking to sell the car on once again. You therefore may not get the price you were hoping for.

If you still have outstanding finance on your vehicle, you’ll want to settle this before attempting to sell it. To do this you’ll need to speak to your finance company and ask them for a “Settlement Figure”. There may be an early redemption charge and an administration fee to pay, but this is usually a lot less than the interest you would have incurred had you simply continued to pay the finance each month until the end of the term. Once you have paid the remaining balance in full you are free to sell the vehicle on.

If you are looking to part-exchange your vehicle with outstanding finance, many dealers will be happy to do this, as long as you have the settlement figure required to clear the balance. This will simply be deducted from the amount you get for your part-exchanged vehicle.

However you’re planning on selling your car, it’s incredibly important to keep all documentation, including all receipts and MOT/Service documents. This will let future owners have a clear picture of the life the car has had. Presumably, if you’re reading this article, you’re someone who cares about your cars, so make that obvious by filing everything and having a Full Service History. It will add value to your car at the end of the day too, so it’s a win-win.

It’s daunting, but sometimes the best way to sell your vehicle isn’t necessarily the easiest. If you can manage without it for a few weeks, it will most likely save you hundreds if not thousands of pounds if you sell it before buying your next one.

What's the best way to sell your car? - Part-exchange vs Private Sale

Often, the decision to buy our next car is one that is thrust upon us by unforeseen circumstances; a broken down banger or sudden vehicle theft, for example. Occasionally, however, we may be lucky enough to plan ahead and choose when we want to make that all-too-precious upgrade to our next car.

Choosing the right time to buy can actually be as tricky as choosing which car you actually want. Should you buy in summer or winter? Start of the month or end of the month? Weekday or weekend? All these are questions we ask ourselves and rarely know what is best.

We'll start with an easy one: If you have the flexibility to visit a dealer during the week you’re more likely to get better facetime as they’ll be quieter. This is an easy way to put yourself in the driving seat. (Sorry, couldn't resist the pun...)

The type of car will also affect when the best time to buy is. For example, convertibles and sports cars tend to be more popular in summer (picture top-down winding roads with the sun beating down on the way to the beach), and so you may find cheaper deals for these during the winter months. On the flip side, 4x4s are more sought after during winter (thinking more about dark, wet and snowy school runs now...), so these could be available at a discount over spring and summer.

Also consider the weather. When it’s pouring with rain or snowing outside, people don’t really want to go out, so the dealerships may be quieter. Similarly, if it’s a glorious day, the average person wouldn’t want to spend it walking round a car showroom (me personally, it sounds like heaven, but that’s just me). And, of course, when it’s quiet in the showroom, the salesperson may be getting itchy feet for a sale… I think I sense a bargain approaching…

You’ll need to consider taxing your vehicle too. These are priced per month, so if you buy at the end of the month you will still have to pay for a full month. So it’s cheaper to collect your vehicle at the beginning of the month. And remember, tax is no longer transferable with the sale of a vehicle.

December and January can be a great time to buy a car too. Around Christmas time and the new year people are not really thinking about buying a car, so demand is much lower. This means dealers will be eager to get a sale if they see you enter their showroom. Consider this advantage you.

Usually, the first thing you'll decide is whether you want to buy new or used, as this will greatly affect when the right time to buy is. If you're still undecided, check out our article Used car vs new car - Which should you buy? for more information.

The majority of new cars are bought through dealerships. These dealers are given targets by the manufacturer and incentives to sell as many vehicles as possible. The rewards they get can be extremely lucrative and tend to be calculated every quarter. That means if you want a good deal, turning up at the end of March, June, September or December could mean you get a big discount if the salesperson needs a quick sale to hit a quarterly target.

Another important factor to consider is the biannual number plate changes. Each year in March and September new registration plates are released. This often means there is a surge in demand in buyers wanting the latest plate on their new car (to hold resale value as much as possible), so beware as the higher the demand, the smaller the discount. At the beginning of these months you’ll be unlikely to see many bargains. That said, if you can hold tight until the end of the month, the initial surge may have died down and you might be able to find some wriggle room.

Similarly, if you’re not too fussed about having the latest number plate, you could try to bag a deal at the end of February or August when demand is often lower. Be careful though, because much of any saving will be coming off your future part-exchange price.

It’s worth noting also, that if you want the car quickly, you’ll likely have to take one of the dealers stock or pre-registered cars (also called nearly-new cars), as these can be turned around quickly. Dealers are often very happy to sell their stock vehicles as they just accumulate dust in their showrooms and plummet in value. They are often models that are soon-to-be-replaced with revised facelifted or brand new models too.

Pre-registered cars are cars that the dealer has bought and registered in their own name to bump up their sales figures. They then intend to sell these on themselves, usually within a few months, albeit at a good discount. They often buy a huge number of these towards the end of March and September to hit sales targets, so if you look around June or December you may be able to scoop a good deal on a pre-reg.

A brand new vehicle made to order will take a few weeks and may not be able to be registered until the following quarter, so bear this in mind too.

Unfortunately, bartering a deal on the actual car is only half the job of buying a new car. If you’re looking at finance packages, or any add-ons such as servicing plans or tyre and paint protection, then expect the haggling game to continue for a while longer yet. Also note that the salesperson will likely have specific targets for each of these too. For more information on the types of finances available, see our article PCP vs HP vs Loan vs Cash vs Lease - What's the best way to buy a car?.

Demand for used cars can follow a similar pattern to new cars. This is because at the change of number plates in March and September, when there is a huge rush for all the latest models with the latest plates, there is naturally a huge influx of part-exchanges that are then sold on the used vehicle market. So consider this a good time to potentially get a 3 or 4 year old car for a steal.

Essentially, if you're in a hurry then you won't have much leway when it comes to choosing when you buy your next car. But, if you've got time on your side, consider some of the tips above and you may be able to get just that little bit extra thrown into the deal. Good luck!

Tag: dealership

Buying a car in 2020: my experience of visiting a Covid-secure dealership

What's the best way to sell your car? - Part-exchange vs Private Sale

When is the best time to buy a car?

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