A brand-new car could actually work out cheaper than a used one

With many car makers now operating an agency-style dealer model – whereby you buy directly from
the manufacturer rather than a franchise – there’s often less scope for negotiation when buying a new car. The advertised price is what you pay, like it or lump it.

But there are still ways to save money and net yourself a stellar deal. While you may find a growing trend towards fixed list prices, there are plenty of low-APR finance deals around, and if you look hard enough, some pretty hefty deposit contributions, too.

It’s the latter that my own parents took advantage of only a couple of weeks ago. We’d been to a number of showrooms looking at used and nearly new cars, only for one Volkswagen salesperson to suggest he could get them into a shiny 25-plate model for near-enough the same price as a one-to-two-year-old example. Given that the cars they were looking at were some £5-6k cheaper than list price, they were understandably keen to hear more.

It turns out that Volkswagen was offering a substantial £6,550 deposit contribution on any new ID.3 – essentially slashing the price on a factory-fresh family EV by more than 20 per cent. The same deal is available on the ID.4, ID.5 and ID.7, as well as the retro-cool ID. Buzz if you order before the end of March – indeed, some models are being sold with nearly £9,000 off.

But the best bit is that although you need to agree to the relevant terms and conditions, if you’ve got the capital, there’s nothing stopping you from taking delivery of the vehicle one day and paying off the balance in full 24 hours later – excluding you from any interest charges or excess-mileage penalties.

Better still, Volkswagen isn’t alone in offering big deposit contributions if you’re in the market for a new car. Sister brand Audi is offering £6,500 off a Q6 e-tron, and there are several Mercedes models with between £6,500 and £7,500 off. The deals are not restricted to electric cars, either. You can snag over £3k off a petrol Peugeot 208, while Honda is offering £2,500 off several models, including the Civic Type R hot hatch.

Yet given the news this week that many Volkswagen Group brands will – at least temporarily – revert back to a traditional, negotiation-friendly, dealer model, these offers may not last that long. My advice is not to look at list price, or even the advertised monthly finance figure; delve a little deeper to see where the real value lies. 

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