The three-year cycle
An article in the national press this week suggested 2019 could be a great time to buy a used car. A record number of new cars were sold in 2016 and over 2.3m being sold on the popular 3 years Personal Contract Purchase (PCP) and Personal Contract Hire (PCH) plans. This means there is set to be a surge of low mileage used cars entering the market next month which means motorists can make some huge savings by choosing to buy an ex-finance car instead of a standard used car or brand new vehicle. After the initial 3 years, the price of the car has dropped dramatically making them exceptional value – and with a glut of options, website “GarGurus” is predicting a very competitive period with dealers looking to shift their stock on at reduced prices. CarGurus also revealed the number of low mileage, three-year-old used cars available for sale has more than doubled since 2016. “While 2016 proved to be the year of the new car, 2019 could be very much the year of the used car with a vast swathe of ex-finance contract vehicles heading back into dealer stock,” Chris Knapman, Editor of CarGurus UK, said.
Why buy Ex-Finance?
Because of the finance terms and conditions, you will find ex-finance / PCP vehicles are often well maintained with regular service and maintenance. Also, due to the restrictions that are often in place, the vehicles will usually have comparatively low mileage. All this means great value for the customer.
As with any purchase, especially such an expensive and important one as this, you should always shop around and research all the potential cars thoroughly. Don’t be afraid to do some reading online and look at consumer reviews to work out whether the advertised price represents a good deal. You may also be able to look at logbook loans.
Top-Tips for buying a used vehicle
Check history: Always check the background of the vehicle and make sure it has been fully checked and serviced. Many dealers will offer this check as standard but make sure to ask.
Other useful linksThere are lots of websites that can offer help and advice when deciding on what car to buy:
- Check the past results of a vehicle’s MOT tests
- See if a vehicle has an MOT certificate and when it runs out
- Car history check, free car valuation and quick MOT history check.
- Car reviews and valuations
- Compare offers from local and national dealers
- Car Reviews channel