Tips For Buying A Car

If you're in the market for a new car, these tips may help.

If you were to ask me what my favourite purchase, ever, has been, I would have to say my old VW Polo. I bought this car when I first started working for £1,800, and sold it eight years later for £500. Not bad depreciation, eh?

Of course, losing just over £160 off the value of a car each year is pretty rare. Most cars lose far more, and driving a brand new car off the garage forecourt can whip thousands off its value. Indeed, a recent investigation by Auto Express magazine found that a dealership which sold a BMW 3 series for £25,000 would pay just £18,000 to buy it back a week later -- meaning the car effectively lost £1,000 a day! No wonder so many people say you should never buy a new car.

So what should we look out for, when buying a car? Check out these tips from HPI:

Budget

Firstly, set yourself a realistic budget, including running costs. Make sure you factor in insurance and running costs (remember older cars can be cheaper to buy but more expensive to run and repair).

Viewing

Make sure you view a potential vehicle in daylight, and try to do so at the seller's address. And take a friend for a second opinion.

Check the Documents

Validate the details in the V5 (vehicle registration) document and cross check with the MOT certificate. Make sure you check the service history. Remember that the V5 document will give details of the previous two owners, so you could always contact them to check details.

Check for signs of clocking -- does the wear and tear on the steering wheel, seats, gear stick and pedals match up with the mileage?

Separate keys for the boot and drivers door may indicate prior damage or theft. If in doubt, why notget a professional inspection carried out by a trusted mechanic or companies such as the AA or RAC.

Test Drive

Take a test drive on a variety of roads (making sure you're properly insured first). Listen carefully to check the engine is running smoothly and watch for smoke.

Car History Check

According to the UK's payment association APACS, when purchasing a car, women are more likely to choose an older model and buy privately but less likely to check out the status of the car's history.

Although I would personally answer yes and yes to the first two (both of the cars I have purchased have been privately bought and over three years old), one thing I would always do is to check the car's history.

By carrying out a car history or equivalent check, you can find out if the car is stolen, has outstanding finance owing on it, is an insurance write-off or has been "clocked" (has had its mileage reduced on the odometer). Plus you'll often be protected against any losses, should the information you receive be incorrect. You can typically get a car history check for around £25.

Buying from the Trade

Dealerships must abide by the law and sell good quality vehicles that are correctly described. They should offer some kind of warranty and use the National Mileage Register to check the vehicles they are selling. Apart from the usual wear and tear, used vehicles should be free of defect, unless it's pointed out at the time of sale.

Cars must also be as described and fit for purpose -- you shouldn't be told it has had one careful owner if it's had three, or capable of pulling a caravan if it isn't.

Finally, if you're planning to buy a new car:

Decide on a fair price before you even enter a showroom.
Play one dealer against another.
Pay with cash if possible.
Try to sell your old car privately -- you'll generally get more money for it than by trading it in.
If you do wish to use your old car as part exchange, never tell the dealer until you are ready to buy.
Remember to consider engine size in relation to motor tax band.
Consider insurance grouping.
Finally, ask yourself if the car will last for years, because that's the best way to beat depreciation.

Hopefully by following these tips you'll have an easy purchase. However, if you are unfortunate enough to have problems, return the car to the dealership. If it fails to take action, you can contact the Office of Fair Trading or Trading Standards for advice. Good luck!