**Savvy Drivers Urged to Act Fast: Over £1,000 Savings on Cars Possible Before June’s End**
Motorists across Wales—and indeed, the rest of the UK—are being advised to act without delay if they’re considering buying a new or nearly new vehicle, as experts reveal that the final week of June could yield savings of well over £1,000. According to professionals in the motor finance industry, this period presents a rare opportunity for buyers to secure considerable discounts, as car dealerships push to close the quarter with strong sales figures.
Lorna Macpherson, a leading motor finance expert at Ocean Finance, has outlined why this time of year is ideal for those looking to make a significant saving on a car. She explained, “Dealerships work towards strict quarterly sales targets, and the pressure to meet these at the end of June can mean bigger discounts, enhanced finance packages, and even perks such as complimentary servicing or extended warranties.” Her advice? Move swiftly, as the discount window tends to be most favourable in the last seven to ten days of the month.
But the timing of a purchase isn’t the only consideration for those hoping to shave pounds off their next motor—choosing to buy in June or July could also improve your chances if you’re part-exchanging or selling privately. The demand for both new and used cars typically spikes during the summer, with families preparing for holidays and students planning ahead for university. As a result, used vehicle prices often see a temporary surge, creating a win-win for both buyers and sellers.
However, Ms Macpherson cautioned that even the most perfectly timed purchase can be undermined by common financial missteps. She highlighted five typical errors drivers make when arranging car finance, which can wipe out any savings made on the forecourt—even if a great deal is struck on the car itself.
Firstly, she warned against the temptation of opting for the lowest possible monthly payments, often by stretching loans over five or six years. While monthly bills may appear manageable, the long-term cost is frequently much higher. For example, a £10,000 loan at a 10% APR over five years comes to £2,645 in interest, versus just £1,616 if repaid in three years—representing a saving of well over £1,000 simply by opting for a shorter loan.
Personal Contract Purchase (PCP) arrangements form the next pitfall. Many drivers fail to realise that a large ‘balloon’ payment is often required at the end of a PCP deal if they wish to keep the car—sometimes to the tune of £4,000 or even £6,000. Macpherson’s advice: always check the terms of the final payment upfront and consider alternative finance options, such as Hire Purchase, if retention of the vehicle is a key goal.
Another costly error arises from exceeding annual mileage allowances. PCP contracts normally come with a cap—often around 8,000 miles per year. Surpassing this can result in penalties of up to 15p per mile, which rapidly accumulates for those with lengthy commutes or frequent trips. Being up-front about anticipated mileage and arranging the correct allowance from the outset can help motorists avoid a pricey surprise later on.
Ms Macpherson also emphasised the importance of maintaining a good credit rating. Borrowers with poor credit can find themselves facing punitive interest rates, inflating the cost of owning a vehicle by hundreds of pounds. Simple steps, like registering on the electoral roll and paying off outstanding debts, can improve one’s credit score—and, in turn, the finance offers available.
Finally, she urged buyers not to accept the very first finance offer presented by a dealership. Sales staff often earn commission from finance agreements, meaning their first offer may not be the most competitive on the table. Comparing rates through reputable brokers or online comparison services could result in significant savings, with even a modest 2% change in APR potentially slashing over £300 from the total repayable on a £10,000 loan.
With the end of June fast approaching, those in the market for a new car are advised to act quickly, making sure to avoid the most common finance pitfalls. By pairing clever timing with prudent financial choices, drivers across Wales and the UK could see well over £1,000 knocked off the cost of getting behind the wheel this summer.