How to buy a new car

Nearly two million new cars were sold in the UK during 2024. And for many, a new car represents not only status – the latest styling and technology – but also peace of mind that parts are unlikely to fail and, if they do, it’s backed by a lengthy manufacturer’s warranty.

However, with five of the top 10 best-selling models of 2024 having a starting price of more than £30,000, buying a new car isn’t a cheap business – meaning it’s important that you spend your money wisely.

In this article, we’ll cover:

- How to choose the right car for you
- Where to buy a new car
- What to check when buying a car
- How you can pay for a new car
- The best ways to reduce the price of a new car

How do I choose the right car?

This is the most important consideration to make when buying a new car. Before setting foot into any dealership, come up with a shortlist of models to take a closer look at. Think about exactly what your next car should be capable of. 

Consider the following factors:

- What’s the maximum you’d be willing to pay for it?
- Should it have good performance?
- Does it need to have low fuel consumption/a long electric range?
- Will it need to keep you comfortable on long motorway drives?
- Should it be easy to manoeuvre into tight parking spaces?
- How big should the boot be?
- Does it need room for five (or even seven) passengers?
- What standard equipment should it come with?
- Should it come with a long warranty?

Once you know the type of car you’re interested in buying and what it should be capable of, start looking at what the different manufacturers offer. While some drivers like to stay loyal to a certain brand, it pays to consider cars from a wide range of rival companies. 

Of course, you’ll find detailed analysis of all the cars you’re interested in our new car reviews. Each review offers independent verdicts on what each car is like to drive. If the model has been on sale for a while, the review will also feature the percentage of owners who have encountered faults in the latest What Car? Reliability Survey.

Where should I buy a new car?

Franchised dealers

The most obvious place to go for a new car, one of the main perks of visiting a franchised dealer for a new car is that you’ll be able to have a thorough look around any model you’re interested in buying. These main dealers are also seen as a friendlier way to buy a new car, with salespeople trained by the manufacturer at hand to answer any questions you have. 

Since franchised dealers buy cars from the manufacturer at wholesale prices, many are able to still turn a profit when selling models below the list price, especially if you take out car finance. This means you can often negotiate with the salesperson, which could cut hundreds or even thousands of pounds off the price of your desired car. 

Nevertheless, with more car manufacturers shifting toward online sales, the number of new car dealerships operating in the UK is falling. As a result, you might have to travel further than you think to look at certain models on your shortlist. 

Agency sales

While franchised dealers are independent companies that have an agreement with a manufacturer, some car makers are opting for an agency system – particularly following the Covid-19 pandemic. While many traditional companies sell cars via franchised dealers and an agency system, some of the more recently-launched brands, such as Polestar and Tesla, exclusively utilise the agency model.

The main difference is that, under an agency system, the manufacturer sells their cars directly to the customer – organising finance and, crucially, setting fixed prices. As a result, the price you see on the company’s website is the price you’ll pay. While this eliminates the potential awkwardness of haggling, it also means you won’t necessarily drive away feeling as if you’re up on the deal. 

The main advantage of buying a car through an agency sale is convenience. While some manufacturers who use an agency system run dealerships, allowing you to look at their cars in person and organise a test drive, the majority of sales are conducted online. This means you can buy a car from the comfort of your sofa.

What should I check when buying a new car?

One benefit to buying a brand new car is that you don’t have to worry about how it’s previously been looked after. Even so, you’ll still need to check that each new car you’re interested in will suit your needs. 

By now, you should know exactly what you want from your new car and how each model stacks up on paper. However, it’s still important to take a close look at all the cars on your shortlist in person – particularly focusing on the following:

Make sure it matches your style

While it’s important to let your head (not heart) rule when deciding what new car to buy, you should still make sure you like the way it looks. Take a slow walk around the car to check it from each angle, checking parts such as the wheels and any trim. Don’t forget to get inside and check that you like the style of the interior.

It may seem like a minor factor in deciding your next car; however, the way a car looks can play a key factor in how it will retain its value in the coming years.

And don’t forget to park it on your driveway – as much for being able to tell what it will look like as to making sure it actually fits.

Try the seats for size

If you’re going to be the main driver, it’s vital that you get behind the wheel and see how much space you have. Make sure the seat and steering wheel can be adjusted to your requirements and that you have enough head and leg room to remain comfortable on particularly long journeys. You should also check that the driving position offers a clear view of your surroundings – including to your back and sides.

Don’t stop at the driver’s seat, either. It’s best to check each seat offers enough room to keep occupants comfortable. If your next car will be used by the whole family, bring them along and get everyone’s opinion.

Check the boot

While you can easily find out the size of the car’s boot on paper, it’s always worth opening the tailgate and checking that it’s just as practical in reality. Make sure that the opening is wide and that the overall shape of the boot is flat enough to easily accommodate bulky loads. It’s also worth seeing whether the boot has any clever tricks, such as a height-adjustable floor or a 12v socket for a cooler bag. 

Don’t forget to check how much space is offered when the rear seats are folded. In addition to making sure whether the kitchen sink can be loaded in there, see whether the rear seats have any handy features. In addition to folding flat, you might be able to flip them forward or remove them entirely.

Play with the touchscreen

Most new cars come with an infotainment touchscreen to operate a wide range of features, such as the air conditioning controls, radio, and sometimes even controlling the mirrors and air vents. As a result, it’s vital that you make sure the infotainment system fitted to the car is user-friendly. Spend a few minutes going through the menus to make sure all the features you typically use are easily accessible and that the touchscreen is responsive.

It may also be worth checking whether the car you’re interested in comes with Apple CarPlay and Android Auto. These systems are generally very easy to use because they mirror your smartphone’s menu on the touchscreen, and let you install a wide range of apps for calling and messaging, navigation and audio streaming.

Take it for a test drive

Before you book a test drive, make sure the dealer has an identical version of the car you’re interested in buying available. If you only test drive a version with a more powerful engine or motor set-up or with a higher trim level, you might be disappointed in your purchase. However, if there’s limited availability, prioritise finding a car with the same power set-up.

Test drives typically only last about 20 minutes, so it’s best to prepare a route in advance to make the most of your brief time behind the wheel of the car. The route you plan should cover as many types of road as possible. This can include busy urban streets to assess the manoeuvrability of the car, slow and bumpy roads to check the ride quality, and a few minutes on a motorway or dual carriageway to see its road manners.

While you don’t have to listen for any suspicious noises, like you would when test driving a new car, it’s vital that you make sure you like the way it drives – particularly when negotiating the sort of roads you’ll typically use.

How can I pay for a new car?

While new cars have increased in price over recent years, there’s a considerable range of methods you can use to buy a new model without breaking the bank.

Cash

Of course, you can always pay the agreed price for a car in full. This can give you peace of mind, because you’ll own the car from the moment you drive it off the forecourt. In addition to not having to keep up repayments over several years, you’ll be able to cover as many miles as you’d like and won’t incur penalties for any accidental damage. 

Nevertheless, to get that peace of mind, you’ll need to find tens of thousands to spend in one transaction – potentially limiting the number of cars you can afford. Moreover, you’ll also be putting your money into a depreciating asset – with cars typically losing between 40% to 60% of their value in the first three years.

To see how much of the original price your car may loose, take a look at our features on the fastest depreciating cars and the slowest depreciating cars. 

The most common way of paying for a car in full is with a debit card or bank transfer. Both methods are a quick and safe way to transfer money directly from your bank account to the dealer. Since most bank accounts impose a transaction limit, restricting the amount you’re able to spend in 24 hours, you might need to temporarily remove it or use CHAPS (Clearing House Automated System).

Ran by the Bank of England, CHAPS is specifically designed for high-value transactions. You can use CHAPS by visiting your local bank with a valid ID and the details of the dealer you’re buying the car from. You can also send money through the system over the phone with your Telephone Security Number or voice ID, or via your banking app.

While it’s no longer a common method, you could also use a bank draft to pay for a car in full. Since the draft is guaranteed by your bank, it’s a safe way of transferring money; however, they can take far longer to process than other forms of payment, so you might have to wait several days before you can collect the car.

Finance

Nearly 90% of all new cars sold in the UK are paid for via some form of finance. By spreading the cost of payments over a fixed period of time – typically between 18 and 48 months – drivers can more easily manage the expense of their new car, and get behind the wheel of a model they may otherwise have been unable to afford.

There are several ways to finance a car, each with their own advantages and disadvantages. They are:

Personal contract purchase (PCP) – This is by far the most popular way to finance a car. With a PCP deal, you pay a deposit (typically around 10% of the list price), and then a fixed monthly fee for the duration of the contract. The difference between PCP and other forms of financing is you don’t pay the full amount during the contract. Instead, you have the choice to pay the remaining amount (known as the ‘balloon payment’) to own the car, hand the car back to the dealer and call it quits or use that remaining value as a deposit on a new model.
Personal contract hire (PCH) – Think of a PCH policy as a long-term method of renting a car. Sometimes called a ‘personal lease’, you make an advanced rental payment at the start of the contract, and pay a fee each month thereafter. However, there’s no option to keep the car once the contract ends. As a result, PCH deals can work out cheaper than an equivalent PCP.
Hire purchase (HP) – Before the introduction of PCP schemes, HP was the most popular way of financing a car. Like PCP, you start with a deposit of typically about 10% and pay the rest of the car’s value in monthly installments over one to five years. The big difference is that, once the contract has finished and you’ve paid a small fee, you’ll become the legal owner of the car. Since you’re paying off the full price of the car, the monthly instalments are more expensive than the equivalent PCP or PCH deal, though.
Personal loan – By arranging a personal loan with your bank or building society, you’ll be able to give the dealer the full amount for the car and become the legal owner from day one. If you plan to keep the car for a long period of time, paying back a personal loan can be a lot cheaper. However, if you sell the car shortly after buying it, you’ll still have to pay the full amount.

So, there are financing methods to suit most needs, but you should still think carefully before signing any agreement. In particular, think about whether you’ll still want to own the car after a few years. Moreover, make sure you’ll be able to keep up the monthly payments, because ending a contract early will likely result in severe financial penalties. 

How do I get the best price for a new car?

While there’s no flexibility on the price of a new car being sold online or via an agency-style dealership, franchised dealers will almost always be open to offers. To find out how big a discount you could get on the car you’re interested in, check our New Car Deals service. Here, you’ll find the best possible prices being offered by car dealers across the UK – with some models being advertised for more than £10,000 under their list price.

When negotiating for the best price, remember to stay calm and be polite to the salesperson. Don’t start by telling the salesperson your budget as it’s highly likely they will make a higher counter-offer. Instead, let them know that you’re genuinely interested in buying the car but show them that another dealer is offering the same model for less. This shows you’ve done your research and aren’t just pulling figures out of thin air.

Of course, you can haggle for much more than just a discounted price. Rather than naming a price, ask the salesperson whether you could have some extras included in the base price. This could be optional extras fitted to the car – such as metallic paint or a reversing camera – or things the dealer can provide, including free servicing.

However, if you can’t come to an agreement with the salesperson that’s within your budget, don’t be afraid to walk away. Chances are, there’ll be another franchised dealer that might be open to the idea of a larger discount.

You can also cut the cost of a new car by part-exchanging it with your old model. With a part-exchange deal, the dealer will evaluate your car and subtract its value from the price of the new car. Many car buyers like to part-exchange their old model because it saves them the hassle of selling it themselves. However, since the dealer has to turn a profit on the car, you’re unlikely to get the full market value for it – meaning it could cost you more money in the long run.

What happens next?

It’s unlikely that you’ll be able to buy a new car and drive it home on the same day. You and the dealer will need to take a few steps beforehand to make you the official owner of the car.

Paperwork

Of all the paperwork that will come with your new car, the most important is the V5C registration document. This is the car’s logbook that features official information about the vehicle in question and its owner. 

Make sure all of the figures printed on it are correct. This includes:

- The registration date
- The colour
- The engine size
- Matching Vehicle Identification Number (VIN) and chassis number

To officially complete the sale, you’ll need to add your details to this form and take the relevant section to keep. It’s also a good idea to request an official invoice from the dealership to confirm that the car has been purchased. This should feature the date, agreed purchase price and details on any payments that have already been made. 

If you’re taking out a finance package from a dealer, it’s also important to check any documents to make sure you understand all the details and implications of the deal before you sign it. 

Delivery time

The amount of time you’ll have to wait before getting the keys to your new car will largely depend on how sought-after the model is and the version you’ve specified. It’s likely that you’ll need to wait several weeks for your order to be completed and the dealer to inspect the car and fit any options you specified.

Even so, the dealer should give you an idea of when your new car will be ready, so you’ll be able to confirm a collection date. In the meantime, you’ll be able to stay in contact with the dealer to check that preparation work is going smoothly.

What if I change my mind?

Even with careful consideration, sometimes you can have a change of heart shortly after buying a new car. Of course, this is much easier to manage before you buy it; however, if you have concerns that the car in question won’t be right for you after placing your order, it’s vital that you let the dealer know before taking ownership.

You could also return your car if you find it has an issue. Under the Consumer Rights Act 2015, you have the automatic right to a full refund if you reject a car within the first 30 days for any of the following reasons:

- It’s not as described
- It’s not of satisfactory quality
- It’s not fit for purpose

Dealers might also take the car back after 30 days, but it’s highly unlikely you’ll receive a full refund. In some cases, the dealer may try to negotiate a settlement by offering an extra discount or another type of incentive. In these cases, it’s down to you to decide whether the settlement is fair.

What Car? verdict

What Car? content editor, Jack Mortimer, says: “Buying a new car is an expensive and sometimes unpleasant business; however, it’s vital that you don’t rush it. Take the time to carefully consider exactly what you’ll expect your new car to excel at and visit each model on your shortlist in person to see whether it’s suitable.

“Careful research is also the key to getting the best possible deals, with many franchised dealers happy to negotiate and possibly match the best prices around – even if they’re more than £10,000 under the manufacturer’s list price. Finally, while PCP is undoubtedly the most common way of paying for a new car, don’t immediately dismiss the other options. You might be able to save a packet by using other forms of financing, such as PCH or a personal loan.”

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Read more: What is PCP? Understanding personal contract purchase car finance >>