Buying a used car can conjure up images of dodgy dealers and horror stories about ending up with a car that is unsafe or worse, stolen. But it doesn't have to be like that. A used car can be a very smart investment if you follow some simple rules.
1. Decide what you need before you start to look.
It is very important that you do not let your heart rule your head when buying a used car – don’t let yourself be seduced by a car that looks great but isn’t really what you need. That means deciding what kind of car you are looking for, and how much you can afford to pay before you start. Taking this approach will also help to ensure that you stick to the rules, checking everything from the car’s ownership to its condition properly, rather than persuading yourself to overlook some ‘small problems’ because you ‘must have it’.
When deciding what kind of car you need, think about:
- Your circumstances:
How big is your family and do you have pets? Do you need lots of boot space and will you do lots of long journeys? Considerations like this will help you to decide how big the car needs to be and, for instance, whether to go for an estate or a saloon model
- Your budget:
Think carefully about how much you can really afford to pay. Ideally you should come up with a maximum amount you can afford, and then settle on a budget slightly below that. This will help you to avoid focusing on your ‘maximum budget’ from the start, which could cause you to miss some real bargains at slightly lower prices, but still leaves some room to pay a little more if you really need to
- Finance:
If you plan to use a loan to buy your used car, be sure to shop around for the best deals.
- Running costs:
Remember that a car doesn’t stop costing money once you have bought it. Everything from the insurance and road tax categories it falls into, to fuel consumption and fuel type (diesel, petrol, LPG etc) will affect the cost of running the car. You can get information on fuel consumption and other costs by visiting www.whatgreencar.com. Then find some example cars by visiting www.autotrader.co.uk and use their details to get some example insurance quotes. All of this information will give you a good idea of the running costs of a range of different cars – helping you to narrow your choice.
2. Build a shortlist.
Use all the information gathered during the steps above to pull together a shortlist of car models that fit your needs and budget. At this stage, keep an open mind – unless you are determined to find a specific make and model, it is better to rule out only those cars that do not fit your circumstances and/or budget.
3. Narrow it down, do your research.
Given that used cars are usually only covered by warranties if sold through dealerships, it is very important that you consider issues like reliability and cost of maintenance before you buy. The best way to do this is to read reviews written by people who already own the types of car on your shortlist. Their comments, which you can read at www.drivethedebate.co.uk for instance, will tell you pretty quickly which cars should not be on your shortlist. Rule out any make or model that gets consistently bad reviews or which seems to have problems with reliability.
4. Start the search in earnest.
Now that you have been through the process of deciding which types of car are right for you, it is time to start looking for a bargain. The key here is to shop around. Don’t limit yourself to your local dealership (though it shouldn’t be ignored), but consider:
- Official dealerships:
Most will have their own website listing used cars and it is possible to have a car brought to you from another part of the country. These dealership are likely to be more expensive, but you do get the benefit of an extended warranty (usually for one year)
- Car supermarkets:
These are huge car warehouses, often with thousands of used cars available and again offering warranties (up to three years). When using a car supermarket, make sure it is reputable – for instance Cargiant is a car supermarket that has an affiliation with the AA
- Papers and magazines:
Your local paper will have a ‘cars for sale’ section, whilst Autotrader.co.uk is also sold in shops as a magazine. Remember that, whilst cars sold in this way are likely to be cheaper, they will not come with any kind of warranty (unless the original manufacturer’s warranty has not yet run out).
Ideally, you should identify two or three cars that would be right for you, so that you can compare them all. If you only find one, then you will have nothing to compare it with and no way to tell if you are getting a good deal.
5. Make contact with the seller.
Your approach here will depend on who you are buying from – with a private seller or an independent used car dealership requiring a different approach to a ‘branded’ dealership (e.g. Ford, Audi etc) or a car supermarket.
A private seller or independent dealer:
Don’t jump straight in and ask to view the car. First of all, you should phone the seller (on a landline number, not a mobile) and ask a few searching questions:
- How long have they owned the car?
- Does it have a recent MOT?
- Does it have road tax?
- What condition is it in?
- Why are they selling it?
- Has it ever been involved in an accident?
- Is it in full working order?
Once you have done that, you should do your own research, starting with a vehicle history check (for instance through www.mycarcheck.com). This will cost about £4 but could save a lot of trouble and expense later. The check will tell you if the car is stolen, has ever been in an accident or written off, is subject to outstanding car finance (which effectively means the car does not belong to the seller) and a lot more.
If you are satisfied with the answers you get and with the results of your history check, arrange a viewing, bearing in mind a few simple rules:
- Always arrange to view a private seller’s car at their home address – this must correspond to the address on the car documents
- Always arrange viewings during daylight
- Take your notes and the original advert with you – so you can quickly check things like mileage, tax, and MOT are ‘as described’.
A branded dealership:
A lot here depends on whether you have used the dealership before and how much you are prepared to trust the ‘big brand’. There is no reason why you cannot carry out exactly the same process as above, though you may wish to arrange a visit and ask your questions in person. You are likely to get more attention and fuller answers this way.
When making first contact, ask whether the dealer has carried out its own vehicle history check, as many do this as standard to protect themselves. If it has not, do so before you visit.
6. Check the car thoroughly
Whoever you are buying from, you must check the car very carefully for faults and damage. Some simple rules and checks include:
- Never view a car in the dark or in the rain – this will make it hard to see dents, scratches and other faults
- Try to have a look at the car before meeting the seller, so you can get a feel for it without the sales patter
- Always start the car with a cold engine – otherwise any starting problems or excessive smoke will be hard to identify
- Bend down and make sure that the front and back wheels are perfectly aligned (front to back) on both sides. If they are not, this could be a sign that the chassis was been bent or twisted in an accident (crabbing) or, worse, that the car is actually two cars welded together (a cut and shut)
- Look at the panels to make sure that the gaps between them are equal. Look under the car and beneath the bonnet and carpets for signs of welding. Lots of welding or unequal gaps between panels could suggest the car has been in an accident or has been badly refitted
- Look for excessive rust
- Check the tyres for wear. The minimum legal thread depth in the UK is 1.6mm (if you can’t hide the rim and ring of dots around the edge of a 2p piece in the tread, the car needs new tyres)
- Check the seatbelts work and the general state of the upholstery
- Look for oil leaks and check the oil level using the dipstick
- Look for a white, mayonnaise like substance round the oil cap. This could be a sign of major problems with the engine
7. The test drive
You should never buy a used car without taking it for a test drive. Here are some pointers to make sure the drive tells you what you need to know:
- Make sure you are insured to drive the car and take documents with you
- Make sure the engine is cold before you start
- Before moving off, turn the steering wheel from one lock (side) to the other and then back again. Listen out for any screeching, banging or knocking
- Test the handbrake by applying it and driving away gently. If it doesn’t hold the car back, it isn’t working properly
- Try to drive on different kinds of roads and go through the gears. Listen out for any strange noises and check that gear changes are smooth. Don’t let the seller distract you with chat or by turning the radio on.
8. Drive a hard bargain
There’s no point doing all that research if you do not then use it to get a better price. The following pointers should help:
- Give yourself time to think and arrive at a price you think is fair, based on the condition of the car and any work you think needs doing
- Ask the seller what they expect to get for it, advertised price aside
- Make your offer, then remain silent – this will force them to either accept your offer or make a counter-offer
- If the seller seems to be on the point of accepting, move to shake hands on the deal
9. The paperwork
Before completing any deal, make sure you see:
- The car’s log book (or V5C document). Make sure the V5C is not stolen by checking the serial number in the top right hand corner. V5C documents with serial numbers between BG8229501 and BG9999030 or BI2305501 and BI2800000 may be stolen
- The car’s service history
- An MOT certificate
- The car’s registration and Vehicle Identification Number
- A valid tax disc (if the vehicle is supposed to be taxed)
Only accept original documents and walk away from any deal if any of the above are not available. In particular, check the V5C carefully – if the seller is not named as the registered keeper, they are not entitled to sell the car
10. The payment
Always insist on a receipt. Get two signed copied, with the seller’s address and details of the car on each. Keep one copy and leave one with the seller.
