Top Tips For Buying A Used Car

Don't forget to check out our tips if you're about to buy a used car - and find out how to get an HPI check for just £5!

If you ask me, one of the best ways you can waste money is by buying a fancy new car. How else can you lose thousands of pounds, simply by moving what you've bought a few metres off a forecourt? I have and never will buy a brand new car myself -- used vehicles are good enough for me, plus I get a distinct sense of satisfaction knowing that someone else has suffered the worst (i.e. first three years) of a car's depreciation. But I'm sure a lot of you car lovers out there will disagree!

However, someone with an even more extreme view than mine is Jim, from our Living Below Your Means discussion board. Check out the value for money he's had from his trusty Citroen!

But anyway, if any of you out there are planning to buy or replace your car in the near future and also prefer to buy used vehicles, I would say it's worth spending a little time to do some homework to make sure you pick a good 'un.

Budget

First things first -- set a realistic budget. Take into account running costs and insurance, and remember, although very old cars may be cheaper to buy, they can be more expensive to run and maintain.

Once you know how much you have to spend, you can start looking. Local newspapers and Autotrader.co.uk can be good places to start.

Check out these tips from Halifax:

• Be wary of buying from a private seller who only uses a mobile phone number or wants to meet you somewhere other than at their house or business.
• Ask to see the log book and full service history. Contact the garage who serviced the car and check to see if there were any major problems.
• Beware of private sellers who have oil stains on their driveway or other cars for sale outside their house -- a private seller with a high turnover may be simply 'shining and selling' second hand cars gained from other sources.
• Check the car's chassis number and VIN number match the registration details.
• Don't be afraid to take the car to a garage or mechanic for them to check it before you buy. Consider getting a check from a reputable motoring organisation such as the AA.
• Never buy a vehicle without a registration document/ certificate (this is the V5/V5C document). Make sure the document is genuine - hold it up to the light to see if there is a DVLA watermark.

I would add:

• Check for signs of clocking (cars that have had their mileage reduced on the odometer). Does the wear and tear on the steering wheel, gear stick and pedals etc. match up to the mileage recorded?
• Test drive the vehicle (ensuring you are properly insured first) on a variety of roads, listen to hear if the engine sounds like it's running smoothly and look for smoke.
• An obvious one but make sure the car is fit for purpose. If you need to fit car seats in the back, bring them along and check they fit (although a really good car may be worth buying new car seats for?). If you need to tow a caravan, make sure it can.

HPI Check

Additionally I would recommend that anyone buying a used car checks to see if there is an outstanding hire purchase agreement on it.

There are a number of websites offering this service -- the most famous probably being the HPI site that can help you find out if the car still belongs to a finance house as well as revealing other key details such as if the car has previously been declared an insurance write-off or is stolen. What's more, you'll often be protected against any losses, should the information you receive be found to be incorrect.

And although this service normally costs around £20, you can currently get your vehicle checked for just £5 at the moment with the RAC (which is actually powered by HPI).

And finally, although I would heartily recommend planning a large purchase such as a car a couple of years in advance, and saving a set amount monthly to achieve your goal, I do appreciate that sometimes you need something a little sooner. If this is the case for you, please, please, please make sure you pick a cheap unsecured personal loan, and pay it off as quickly as possible.

Taking a quick look in our Personal Loan Centre I can see that the best deal at the moment is from Moneyback Bank. Borrowing £4k over 2 years would mean you would be paying £178.36 per month (typical 6.8%APR) and mean that you'll repay an extra £280 in interest over the two years.

Remember that although lengthening the time you take to pay back your debt makes your monthly payments smaller, it will also increase the total amount payable. Try and pick the shortest duration loan you can comfortably manage.

Good luck with the car hunting!

> Ten Ways To Cut Your Motoring Costs
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