FOR those with a few quid in the bank there is definitely a silver lining to the credit crunch. There are bargains to be had, and when it comes to motoring, the reductions can be mouth-wateringly big.

In some ways there has never been a better time to buy a car. Some manufacturers have halted production because they have got a glut of new cars. Huge car parks are bulging with unsold vehicles because supply has massively outstripped demand. As a result, the basic laws of economics are forcing manufacturers to drop their prices and take what they can get for some models.

The big question for the consumer is: how cheeky can I be when negotiating a forecourt deal? The answer will obviously depend on what is on your shopping list. Newly-launched cars which are still proving popular are not going to be as well discounted as others which are nearing the time that they will be replaced with newer models.

ADVICE WHEN BUYING A CAR
Can I get the car tested by an expert to make sure I am not going to end up with a turkey?
In the UK, the AA will come and have a look over a car you are buying. For AA members, a basic mechanical once-over will set you back £119 and a full check will cost £171. The service is not offered in the Channel Islands, but there are several garages that will do it for you. One of the best deals we found was with Enigma Automotive, who are based in St John. They said that they would do a complete check, including a road test, for £50. The key is to shop around and see what you can come up with.

Where can I buy a used car?
There are obviously many second-hand car dealerships dotted around the Island. Private sellers also advertise their cars in the JEP and on websites, and then there are auctions.
Motor Mall holds an auction on the first Wednesday of each month to sell off many of the cars it gets in from part-exchange deals. Vehicles also usually go under the hammer at the weekly auction at Glencoe.
Just remember, it could be prudent to get an expert to go along with you if you are not very mechanically minded.

Is it worth shopping around when it comes to getting finance?
Yes. There are many ways to pay for your car if you don’t have the cash in the bank. And let’s face it, few of us have that sort of money sitting around.
Hire purchase: Most dealers offer hire purchase schemes, but interest rates vary, so check out the APR rate to tell you the real cost of borrowing. The monthly payments may be higher than with some other finance methods, but the overall sum paid back is generally lower. Most garages have their own hire purchase loan deals. You will own your car outright when you hand over the final payment. You will pay a deposit and monthly instalments.
Personal contract purchase: This is a bit like a hire purchase agreement, but the monthly payments tend to be lower, which means you can afford a flasher car than you might have thought possible. However, at the end of the repayment period – often three years – you face a choice: either hand back the car and get nothing or pay a lump sum and own the car outright. The scheme often include servicing and maintenance in the price. Often people swap to have another personal contract purchase scheme to keep on the road.
Personal loan: There is a huge variety of lenders offering personal loans, so shop around for the best deals. You choose how long you take to repay the loan and there are no restrictions on the type of car you buy and how many miles you cover. You also own the car outright from day one.
Releasing capital: By remortgaging your home, you could realise untapped equity in your property. By spreading the repayments over the period of the mortgage, this method provides very low monthly costs, although you do pay back more in the long term. Buying a car this way means that is yours from the outset, but you will have to pay for its servicing and maintenance.