Given the current economic climate many motorists are looking for a way to reduce the cost of their next car.
So it’s no surprise that UK motorists buy 3.6 million used vehicles from car dealers each year, spending £24 billion in the process.
Many new cars lose up to 40% during the first year, making used cars much cheaper to buy. As well as reducing the amount of subsequent depreciation, buying a used car brings more luxurious cars within your budget.
However…
There’s an element of risk associated when buying a used car.
In fact a recent report by the Office of Fair Trading found that 20% of people who buy a used car from a dealer encounter a problem with the vehicle.
Even worse, the independent vehicle checking service HPI claims that one in three cars have something to hide. This ranges from outstanding finance, clocking (mileage reduced to increase the price), cloning (fake car identity used) and hidden defects.
So here are a few simple steps to help you find a legitimate used car which is less likely to give you problems.
Step 1: Do Your Research
Once you’ve worked out how much you’ve got to spend, draw up a shortlist of the type of car that meets your requirements.
Remember to include insurance, car tax, fuel and servicing in your calculations.
Next, spend time online working out how much you can expect to pay based on the model, age, mileage, equipment of the cars on your shortlist.
This will give you a good idea of what you can afford. It will help you to avoid overpaying.
It will also protect you from deals which seem too good to be true.
If a deal seems too good to be true, it is. For example, if you expect to pay £12,000 for a car and someone offers you a deal for £8,000, it’s highly likely that something is dodgy, so walk away.
Step 2: Spend Time Browsing
Spend time online looking for suitable examples of car on your shortlist. There are several good websites that feature used cars for sale.
For example, check out the Used Cars From Motors.co.uk. Their site allows you to search thousands of used cars for sale across the UK based on the make, model, price and location.
Find out the general asking prices for the make and model of car that you’re looking for.
Step 3: Contact The Seller
The next step is to find out the status of the seller. If the seller is a trader, the word “Trade” or the letter “T” must appear in the advert.
If you deal with a trader you will receive additional legal rights that you won’t get if you deal with a private seller.
There will be some shady home dealers who try to hide the fact that they are traders, so when you contact them say that you are calling about “the car”.
A trader who has more than one car for sale will have to ask “what car?”.
Time to walk away.
When you find a private seller or a trader who doesn’t try to hide their legal status, ask the following questions;
How long have you owned the car? Anything less than 6 months and you should move on to the next question: Are you a private seller or a trader?
If they become evasive or admit they are trading, walk away. Do you want to deal with someone who has already lied to you on their ad?
Assuming they are a legitimate private seller, ask more questions about the car based on the advert.
- What model year is the car?
- How many previous keepers are listed on the V5 registration document?
- Is the mileage genuine? How do you know it is genuine?
- What features does the car have?
- Is it in full working order?
- What condition is the car in?
- Has the car had a recent MOT test?
- Is the car taxed?
- Has it been involved in an accident?
If everything appears to be in order and your instincts agree, make an appointment to view the car.
Step 4: Alternative Sources
Franchised Dealers: Most offer used car schemes supported by the manufacturer, for example Ford Direct or Vauxhall’s Network Q.
The manufacturer backed warranty provides peace of mind at a higher price. However, if you have a part-exchange, franchised dealers will almost always offer the best price for your old car. Just remember to focus on the total cost to change your car.
Car Supermarkets: Massive selection or nearly new, ex-rental, ex-fleet and pre-registered cars. Highly competitive prices.
Specialist Dealers: Focus on a certain type of car, such as sports cars, luxury or SUV etc. Prices are generally higher as they have to pay more to maintain stock levels. Convenient if you’re willing to pay a higher price. But if you want to buy a car less than three years old, you may be better checking out used cars from the relevant franchised dealer.
Step 5: Run An Independent Vehicle Check
An independent vehicle check is an essential part of researching a car’s history. For around £20 companies such as HPI will tell you what the vehicle’s full spec should be and whether it has been reported stolen, written-off, scrapped or still has outstanding finance.
All you need is the car’s make, model and registration number.
Many car history companies now offer a mileage check. Just remember that these records may not be up to date and that mileage records rely upon correct information having been recorded in the first place.
The best way to verify mileage reading is to get in touch with previous keepers listed on the V5C. When you come to inspect the vehicle the general condition of the car should confirm or deny the accuracy of the claimed mileage.
A new red V5C was introduced in August 2010 which is more secure and customer friendly. From 4th September 2011, when a car is taxed or declared off the road (Statutory off road notice), the DVLA automatically sends the registered keeper the new red V5C if they haven’t already received one to replace the old blue V5C.
Step 6: Visit The Car
Take the information from the vehicle check, the initial phone conversation and the original advert.
Make sure you visit during daylight when the weather is dry as rain can cover up a multitude of body/paint defects.
For a private sale, it’s vital to view the car at the owner’s home rather than at a pub, car park, service station, your home etc. This can help to flush out rogue traders.
You should also get their landline number rather than just a mobile number.
Make a mental note of your first impressions of the car. Make sure it meets the description in the advert.
Step 7: Check The Paperwork
Always make sure the seller has all the correct documentation. This means;
- The Logbook (V5C document)
- The Car’s Service History
- MOT Details
- Registration Number And Vehicle Identification Number
- A Valid Tax Disc (if this is part of the sale)
Make sure that the VIN number on the V5C matches the VIN number stamped onto the car (normally in the engine compartment).
If any of the documents are missing, incorrect or suspected as stolen, walk away.
Only accept the original document, not photocopies.
And don’t accept stories about documents being “lost” or “in the post”.
If everything is in order, make sure that the seller is the registered owner on the V5C otherwise they’re not legally entitled to sell the car.
Step 8: the Test Drive
If you still have a good feeling about the car, it’s important to take it for a test drive.
The first step it to make sure that you are insured. If you own and insure your own car, your policy will usually cover you to drive another insured car. However the cover is likely to be third party only, so you will be personally liable for any damage you cause to the car. However, all policies are different, so check the small print on your insurance policy first.
As you drive a number of miles on varied roads, pay attention to the following;
- Check the dashboard lights at start up.
- Check the electrics including the windows, sunroof, wipers, lights, radio etc.
- If the car has ABS make sure it goes off within seconds of starting the engine
- Does the engine start instantly?
- Are there any unusual sounds?
- If the car is manual, how does the clutch feel? Where is the bite point? Higher up means it has a shorter remaining lifespan.
- For front wheel drive cars, do a full lock reverse turn in both directions to test the clutch. A clonking noise is a bad sign.
- Is the gearchange smooth? Is there any resistance in the gear shift or any sign of grinding?
- Does the car accelerate smoothly?
- If automatic, how smooth is the gearchange?
- Do the brakes stop the car smoothly and in a straight line?
- Do the brakes lock up during an emergency stop?
Step 9: the Inspection
If the test drive went well and you’re still interested in the car, take time to inspect it in more detail.
Unless you’re mechanically minded, it makes sense to take a mechanic with you or pay for it to be professionally inspected.
The downside of a professional inspection is that it can take time to get an appointment, the cost of the inspection (£100-£200) and the vendor may sell the car in the meantime.
The inspection will provide you with a written report on the state of the car and added peace of mind. Some even include an HPI check.
Specialist cars require specialist inspections which can take longer to arrange and cost more. Most vendors won’t agree to sell a car subject to inspection at a later date unless you pay a non-refundable deposit, which increases your risk. As a result it’s best to buy specialist cars from franchised dealers unless you or a friend can perform the inspection immediately.
Step 10: Strike The Deal
Use your research from earlier so that you know how much similar cars are selling for.
Take a note pad and write down the car’s faults. Each one can be used to reduce the cost of the car. The cost of repairing any faults should be reflected in the price you pay.
When buying privately, hard cash is a powerful negotiating tool. Few sellers will be able to resist £7,400 in cash when they are asking £8,000. But make sure you take precautions to avoid being mugged such as taking a couple of friend.
Stick to your budget but never reveal it otherwise that is how much you’ll end up paying.
Don’t be thrown off your guard by the old “I’ve got two other interested buyers” routine. If they were that keen the car would have been sold.
Make sure you get a receipt for any payment, especially if it’s cash.
Both receipts (one for you and one for the seller) should detail the car sold, the price paid, the seller’s address and the signatures of both parties.
If you intend to borrow the money for your used car, make sure you shop around to find the best deal. If you buy from a dealer, don’t assume their offer of finance is the best.
Follow these guidelines and the chances of running into trouble with your next used car will be greatly reduced.
