There’s never been a better time to buy a new car – it’s true.October 21 2009

IF you’re going to buy a new car, do yourself a favour and buy it within the next ten weeks.

After that you’ll be facing what one senior car trade exec, Phil Robson, Peugeot’s Director of Fleet and Used Vehicle Operations, eloquently described as the `aftershocks’ of the `earthquake’ that has hit the motor trade so hard over the past 18 months or so.

It comes down to this – the cost to change. At the moment, although new car prices have gone up quite a lot because of the weak pound-euro/yen/dollar exchange rate, used car prices have risen even more. Put in simple terms, the difference between a relatively young second hand car and a new one is not so great today as it has historically been because there is a much closer correlation between the two and you get more for your part-ex at the dealership.

This is going to change though, and soon. For one thing new car prices are only going to go one way and that’s up. Within the next few months there is a possibility of yet another price rise from volume manufacturers; VAT reverts back to 17.5 per cent from January 1 and with the public finances in such a mess it is entirely possible (likely?) that it will go higher in the first post-election Budget next year. At this week’s AM Used Car Conference it was suggested that industry intelligence is talking about VAT being at maybe 19 per cent. That’s an extra four per cent on the figure today and on a big number like a new car sticker price that makes quite a difference.

At the same time as new car prices head north, every forecaster predicts that after unbelievable rises this year, values of used ones should pretty much plateau so that the gap between the two, the cost to change, is going to widen.

This effect is going to happen pretty soon so there really is a narrow window to make the switch. I reckon ten weeks but if the manufacturers put up their new car prices in this final quarter then perhaps it’s not even that long.

Perhaps never before has that old chestnut `There’s never been a better time to buy a new car’ has been as accurate and as pertinent as it is now.

The bottom line is this – new cars are going to get more expensive, used cars relatively less so and as that gap widens so the cost to change and your exposure to finance becomes greater.

Do buy now – you know it makes sense.

Perrys, established in 1908,  has over 40 franchised dealerships across the UK , so you can be confident of finding the new car to suit you, backed by the Perrys Promise.