If you’re in the market and searching for a new motor, the chances are that you want to keep the price down. It’s not uncommon when the cheapest of vehicles can set you back thousands of pounds. That’s why finance deals have become more popular in recent years – they provide an affordable way to obtain a quality car.
Still, it never hurts to lower the price even more. Then, your monthly payments will be smaller, and you’ll spend less on a valuable vehicle. Is waiting until the new registration plates come out in spring and autumn a savvy strategy? It can be if you know what to look for when browsing dealerships.
When are new licence plates released?
In the past, registration numbers only changed once a year. However, everything changed in 1999 when the government attempted to even out the number of licence plate releases throughout the year. From that point, regs were brought out twice annually, once in March and once in September. To be specific, the dates are March 1st and September 1st.
Do car prices drop when a new reg comes out?
There isn’t a one-size-fits-all policy across the board. You’ll be glad to hear that new reg plates will reduce the price of a vehicle, and therefore your premiums, in some instances.
However, this isn’t the case if you’re after a brand-new motor. If you want the latest make and model with a shiny licence plate, the latest number (21 and 71 for 2021, 22 and 72 for 2022, and so on) will cost you more because it makes the car more valuable. Where price drops come into play are on the used car market.
Do used car prices drop when a new reg comes out?
Typically, the answer is yes. The reason is that dealers experience lots of traffic around early March and September, and most buyers are on the lookout for a brand spanking new vehicle. To make room for them, they need to balance the books by selling the less popular stock.
This includes used and second-hand models that other interested parties, such as yourself, are happy to snap up if the price is right. The same applies to part-exchanges because they make up around 90% of all car sales.
Here’s how to make the most out of that information….
Searching for used cars
Now that you understand how dealers work, you can target the vehicles that you know command a cheaper asking price. Essentially, you’re searching for anything older than the latest release. After all, your loan won’t be as big if the going rate is lower.
On the other hand, if you’re buying a newer car and don’t want the new reg released to affect its value, PCP could be the best option. Short for personal contract purchase, PCP is a type of finance deal that involves paying monthly instalments for the length of the contract.
When the deal is over, you can return it, find another agreement, or purchase the vehicle outright. By opting for PCP, you don’t need to worry as much about the depreciation rate involved with old reg plates. All you need to do is check your car finance eligibility and return the motor before the deadline.
Finding the best finance deals
Whether you’re looking to buy a nearly new car at the best price or make a brand-new registration more affordable, My Car Credit is on hand to help. We use a large network of trusted lenders to find the best deal for you, whatever your credit rating.
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