Planning can take the hassle out of buying a new car

According to the Society of Motor Manufacturers and Traders (SMMT), 330,000 new cars are expected to be registered this month, with motorists spending  £4.95 billion on new vehicles.

Despite the recession, indications are that confidence is returning to the car buying market, with 18 per cent of AA members saying they plan to buy a car over the next year against just 2 per cent last year.

SMMT chief executive Paul Everitt says: “September is a significant month for the UK motor industry and the wider economy. A strong month for new vehicle registrations will help put both on the right track.

“Franchised dealers have a fantastic range of exciting new models on offer, each with enhanced levels of fuel efficiency, safety, comfort and affordable finance. These advantages make it a great time to buy a new car and motorists should visit their local dealer to secure a new ’62-plate in September.”

Fuel economy, safety, security, in car technology and alternative fuels are all key considerations for car buyers. And a competitive market means there are lots of different kinds of finance available.

Sue Robinson, director of the Retail Motor Industry Federation, says: “The quality of modern cars, the purchasing deals like free insurance, zero per cent finance available from some manufacturers and very attractive prices all add up to a package to satisfy buyers across the spectrum of customer needs.”

According to the AA, for every new car bought this September, at least three used cars will change hands as buyers trade in old vehicles and people looking for nearly new cars trade in their existing vehicles.

Those aged between 18 and 24 are most likely to spend less than £1,000. More than half of that age group (52 per cent) will spend between £1,000 to £5,000. However, the number of people expecting to spend over £15,000 has increased markedly since 2009 (16 per cent) to 23 per cent now. Those aged 65 and over are most likely to spend more than £10,000.

Picking a car which suits your needs is crucial – but so is choosing the right finance.

Kevin Mountford, finance expert at MoneySupermarket, said: “Over recent years car dealers have been trying hard to make buying a brand new car as attractive as possible. Although finance deals are quite competitive and some introductory offers are purposefully appealing to consumers, they’re not the only way to make buying a new car more manageable. Personal loan rates tend to be lower than car finance deals at present, especially if you’re picking up a used car, and therefore you’d pay back less in interest.

“It’s worth checking your ability to get a loan in advance of agreeing the sale of the new car, just to ensure you’re able to borrow the amount you need and also the rate offered to you is affordable. Having the loan agreed in advance should make the car buying process go much smoother and leave you free to choose the car you want without having to focus on the headline offers.”

Making sure you choose a car which best meets your needs is crucial.

But the Institute of Advanced Motorists’ chief examiner Peter Rodger said safety concerns should not be forgotten: “With the release of the ’62 plate many people will be thinking about a new car. If you are – buy a car with the latest safety technology and aim for five Euro NCAP stars. NCAP rates cars according to how safe they are, with five being the best. Before you take the plunge, do the research.”

Although diesel cars are cheaper to run, a Which? survey this year suggested many were more costly when depreciation was taken into account. Meanwhile, evidence from British Car Auctions suggests flashy sports models may be a better investment than you might imagine.

Tim Naylor, editor of BCA’s Used Car Market Report, said: “It is a peculiarity of the economic downturn that demand for high value cars has been strong over the past two years, with buyers prepared to invest six-figure sums for the right vehicle.

“It could be that some well-heeled buyers are simply deciding that their money might as well be put to good use on a prestige car rather than languishing in a savings account that is paying very little interest.”

And although it is often dismissed as an irrelevance, it is surprisingly important what colour car you choose.

Chris Crow, chief editor at industry valuation experts CAP, said: “Over the last five years black, silver and grey all performed consistently in line with the overall market.

“However, colours such as blue, orange and red underperformed, while gold, green, maroon and turquoise were complete howlers, costing their unfortunate owners anywhere between 4 and 6 per cent against benchmark trade values.

“On the face of it, the strong performance of colours such as indigo, pink, purple and yellow may be somewhat surprising but this reflects the niche and often sporty cars wearing them.

“However, white cars out- perform the market, beating other widespread colours, like blue, by up to 6 per cent and green by up to 8 per cent depending on colour-type and condition.

“The lesson for motorists is, when you’re choosing the colour of your new car consider how it will look to prospective buyers when you come to sell it.”