Doing the best deal in a seller's market

IT is getting more and more difficult to retain some element of control when buying a new car because it has become such a sellers' market and a trade-in nightmare.

Many dealers and salesmen can adopt a civil, but unshakeable, take-it-or-leave-it attitude when it comes to bargaining. Especially when they have lines of used cars they can't shift.

Yet there is no reason to give up hope.

The basic truth is that many buyers, with trade-ins especially, often spend more than they need to.

It is still possible to use a little bit of pre-planning and save a lot.

Even today you are entitled to expect something off the list price of a car (unless the price quoted is on-the-road). You may not get it all, but you should certainly try to get something because when a price is quoted as being 'ex-works' you will still have to pay for delivery, plates etc.

While there are now a number of marques quoting on-the-road prices for all or some models, the vast majority still quote the ex-works price.

You need to be crystal clear on what sort of pricing is in operation. And that is particularly important if you have a trade-in. Otherwise you may fall victim to what can be termed the list-price syndrome.

This is how it can work: a dealer tells you the price of the new car is, say, £14,000 but he'll give you a reasonably good deal on your own. You take the list price and the price of your trade-in and you reckon you are getting £1,000 more for your old car than someone else has quoted you. But you are probably, unwittingly, forgoing some or maybe all the discount off the list price. So he's adding a little to the trade-in price but compensating it for it by charging the full list price. Perfectly good, legitimate business - for the dealer.

Please be acutely aware of this.

I have written extensively on this in the Irish Independent and a surprising number of people responded by saying they either did not know how it worked, or even better, that they had saved a few pounds.

You can also help yourself enormously by taking a few other steps.

First of all: use the phone to get the basic information. Ring dealers and garages to see what is available at what cost. Don't mention the fact you have a trade-in.

After assembling as much information as you think you need, try to reduce the range of what cars you would buy to four or five options.

It has become something of a cliché with me but, unless you are one of the lucky few, try to identify something you need rather than want.

Arrange to borrow the money, if you have to, from the cheapest possible source. For each quotation ask: how much in total will I pay over the lifetime of the repayments?

Insist on getting this information from everyone. Then ring up a number of garages and ask what they will charge you for a specific car FOR CASH.

Write down the quotes and compare with previous/subsequent ones from other dealers and garages.

See if you can whittle down your car choice even further.

Make sure these final choices suit you. And whatever you do - take your time. Don't get caught up in the mad rush to buy now. Better to be certain of everything first. There is simply too much money involved to take any chances.

Now you're ready to make your second string of calls.

Don't forget you have the quotes and your car choice narrowed down, so you are clear on what each car is costing for cash.

Now, if you have one, you introduce the trade-in.

So call them up - you don't even have to say who you are or that you called previously - and ask what they would give you on your car in a trade-in against their new one. They won't be too specific but you'll get a pretty good idea.

The important thing is you now have a really good idea of what you are getting for your own car - and that's where you can save money.

Deduct the 'ballpark' trade-in value the garage quoted you from the `cash-only' price previously obtained and you should see which one is giving you the best 'net' deal.

On that basis, across all the garages you call, you can compare like with like. It may be you will decide you would be better off selling your own car privately and buying new on a straight cash basis.

But if, and when, you decide to do a trade-in deal, at least you know exactly what you are getting for yours and paying for theirs. You can see what it is costing you to change. That is critical.

And battle hard for a few extras at no, or at least reduced cost. Such things as an alarm fitted free are well worth fighting for.

Most importantly of all do deal with a reputable garage. There is a comeback with them. And that is so important if problems arise. Sometimes it is better to pay a few pounds extra for the security of a garage's good reputation.

Good luck with your dealings and please drive safely.