10 mistakes to avoid when buying a car

If you're buying a car, don't make these blunders!

Buying a car can be pretty exciting. After all, who doesn’t fancy whizzing around in a fancy new set of wheels? But it’s also a big investment that needs to be taken seriously. And a lot of thought should be put into it before the cash comes out.

So let’s take a look at 10 of the biggest mistakes to avoid when buying a car.

1. Refusing to buy a used car

If you ever walk past a car showroom, it’s easy to get tempted by all the beautiful, shiny cars staring out at you from inside.

However, the major problem with buying a brand new car is that the minute you drive it out of the showroom, the price automatically starts to drop. And that means you’ll lose a fair chunk of your money the minute you get behind the steering wheel.

As a result, buying a used car is a much better option. Not only will the price of the car be lower in the first place, you’re also safe in the knowledge that you’ve avoided the worst of the car’s depreciation.

2. Going over your budget

Recent research from the AA revealed that 29% of people are prepared to spend between £5,000 and £10,000 on a new car. This is down from 32% last year. Meanwhile, the percentage of people expecting to spend less than £5,000 has increased to 26%, compared to 23% last year.

It’s a really good idea to sit down and work out exactly what you can afford to spend on a car before you start looking for one. Set yourself a budget and make sure you stick to it - don’t be tempted to go over this amount – no matter how persuasive the car salesman is. If the price isn’t right, walk away.

3.  Not researching finance deals

The best way to pay for a car is by using your savings. However, if you don't have sufficient savings to do this and you really need to buy a new car, make sure you consider all of your financial options carefully.

Research from esure found that nearly half of motorists don’t do any research into the different types of finance or credit deals available to them – such as personal loan APRs and credit card rates. What’s more, one in ten people said they would just take out any financial package offered to them at the car dealership.

However, by doing this you could end up paying out far more than you need to and wasting money on hefty interest rates. Dealerships are very good at persuading you to sign up to what sounds like a fantastic deal, but by taking the time to do some of your own research you may find a far better deal. Don't simply snap up a deal because it's being offered to you.

To find out what options might be available to you, take a look at Seven top ways to pay for a new car. And if you are thinking about taking out a personal loan or a credit card, make sure you shop around fully using our comparison centres.

4. Failing to haggle

Just because the price tag on your chosen car has been set at a certain level doesn’t mean you can’t try a spot of haggling and get that price down – especially in the current market.

So why not see whether you can push for a lower price? And while you’re at it, see if you can get a few accessories, such as new car mats or six months of road tax, thrown into the bargain!

5. Not shopping around for car insurance

Research from esure also shows that 8% of motorists fail to get a car insurance quote before choosing a new car and a further 16% don’t find out the car’s insurance group either.

However, failing to do this can significantly add to the costs of owning the car. After all, certain cars cost more to insure than others so it’s well worth investigating before you sign on the dotted line.

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Generally, the larger the engine size on the car, the higher the insurance band will be – leading to more expensive premiums. Features such as car security, top speed, and repair costs will also affect which band your car falls into. So if you want to check which group your chosen car will fall into, take a look at the Association of British Insurers' database.

And don’t forget to shop around carefully for car insurance quotes too to ensure you’re getting a good deal and that you can afford the insurance. You can easily do this with the lovemoney.com car insurance comparison tool.

6. Forgetting about additional costs

Similarly, don’t forget to check the tax band of the car you're hoping to buy and factor this into the equation. Tax is charged according to CO2 emissions and you can find out the vehicle’s tax band here.

It’s also worth checking out how often the car you’re thinking of buying will need servicing and how much this is likely to cost.

7. Forgetting to check the value of your trade-in

If you’re hoping to trade in your current car, make sure you know its value before you start car shopping. You can easily find this out on Auto Trader and Parkers.

It’s worth considering selling it privately to get the most money for it.

8. Buying without seeing

Never buy a car without seeing it first and it's a good idea to bring a friend with you for a second opinion.

Make sure you examine the vehicle inside and out to ensure everything is functioning as it should be. And if you’re properly insured, take it out for a test drive to ensure it starts without any problems. Take a look at these test drive tips for more information.

9. Forgetting about the documents

If you’re buying a used car, ask to see the car’s V5 registration document, MOT and full service history. You should also check the car’s Vehicle Identification Number (the unique serial number used to identify individual vehicles) to ensure it matches the V5 document. If the numbers don't match, or look like they've been tampered with, walk away.

It’s also a good idea to see whether the car has an outstanding hire purchase agreement on it. By carrying out an HPI check on a website such as HPI, you’ll be able to check the car's hidden history so you can see whether the car still belongs to a finance house, or if it has been written-off or stolen. However, you will have to pay around £20 for this.

10. Forgetting about your needs

It might sound obvious but when you start looking around for a new car, don’t get too carried away and forget what you really need. It’s easy to get tempted by something totally unsuitable because it looks flashy.

But if you have kids, for example, you’ll need a car that’s practical and that will allow you to put a pushchair in the boot and a car seat in the back! Safety will also be a priority – so take a look at the Euro NCAP site which can tell you which car models performed best in its crash testing.

So next time you buy a car, make sure you don’t make these mistakes!

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