Buying a car is likely to be one of the highest-value purchases you ever make. So how can you make sure you get the best deal?
Nearly new is cheaper
A pre-registered car is a new car that has been bought by a dealer and registered in their name. It is as close to new as it gets without the car having just left the factory, and can save you thousands.
Sales site Heycar recently had a 23 plate Ford Fiesta with 25 miles at a £3,000 discount, and a Volkswagen ID.3 at £28,995, compared with a list price of £37,115.
And they can help you jump the queue. David Ross, managing editor at Heycar, says: “With waiting lists for many new cars averaging six months, and some close to 12 months, you can bypass that by buying a pre-reg.”
Another bonus: they should be covered by the manufacturer’s warranty.
Get your timing right
March and September are busy car-buying periods because number plates change and dealers become inundated with used vehicles in the form of recent part-exchanges.
“Unless these cars get sold in September or early October, they tend to sit around and depreciate. Any leftovers are likely to be at rock-bottom by November, which is when well-financed dealers stock up for the new year,” Ross says.
Late winter to early spring tends to be the most expensive time to buy, according to many experts.
Negotiate on everything
Photograph: Maskot/Getty Images
“With demand for used cars exceeding supply, haggling on price is more difficult than ever,” Ross says. However, while some bigger dealers will say that a price is non-negotiable, there is usually more scope with smaller dealers.
“Don’t be shy about asking what is the best price they can do. This is all part of the car-buying game,” Ross says. “If it is listed at £15,000, for example, we’d be looking at getting £500 to £750 off. The salesperson may say the advertised price is ‘the best I can do’, but we all know that’s not true.”
If the dealer won’t move, negotiate on other elements. For example, ask for a six-month warranty extension or a service package with the first three thrown in.
Know your history
Check the car’s MOT history online and ask for a vehicle history check, to ensure there is no outstanding finance deal on the car, and that it has never been written off. And ask to see the service history.
Also check the mileage. Stuart Masson, editor of The Car Expert, recommends assuming 10,000 miles a year as a starting point – so you could expect a five-year-old car to have 50,000 miles on the clock. Much higher, or lower, could be a red flag. For more reassurance, ask a knowledgeable friend to come along with you.
You can also book a vehicle inspection through organisations such as the AA (from £128 for members at the time of writing) or the RAC (from £110).
Road test it properly
Pay attention to details when driving. “If the car is manual, where does the clutch take up? If near the top of the pedal travel, there is likely to be less than 10,000 miles of life left in the clutch,” Ross says. Watch for smooth acceleration and test the brakes. “If the braking is slow, the discs, pads, drums, linings may be worn or grooved … Finally, check all the electrics: wipers, sunroof, windows, seats, boot, and if it has navigation, is the disc or SD card fitted.”
Think practically. “Will you be putting a wheelchair in ? Can you get golf clubs in?” Masson says. “Anything you need the car to do, check before you buy.”
Don’t write off ex-rentals
“People get hang-ups about buying ex-rental cars because they think they have been absolutely thrashed and trashed,” Masson says. “In fact, people are dead scared driving rental cars, so they tend to be quite gentle with them. And, after a rental, they are cleaned and checked before they go out again.”
Private sellers
“There are plenty of well-cared-for cars on the private market, and you could get a good, reliable motor,” Ross says. However, he adds, “there are also a lot of horror stories”.
While privately sold cars are almost always cheaper, there are risks. “There is less protection – you don’t get a warranty, and you are not covered by the Consumer Rights Act 2015,” Ross says.
Bad part-exchange deals
If you have a car to sell, the simplest option might seem to be part-exchange: the dealer takes your car, and effectively lops its value off the cost of the new one. But the price offered is often far lower than price guides suggest. “What they are banking on is the convenience factor,” Ross says – it’s arguably a lot less hassle than having to sell your old car first and then going shopping for a replacement.
Before you go to a dealer, check with a website such as Motorway (another car selling site) to see how much you might be able to sell your vehicle for – you may be much better-off selling it separately.
Get the right finance
“There are two common purchase options: hire purchase and personal contract purchase (PCPs),” says Sarah Coles, a senior personal finance analyst at investment platform Hargreaves Lansdown.
“Hire purchase usually involves a deposit and monthly payments. The monthly payments are higher than PCPs or leasing, but you own the car at the end of the deal, without any substantial extra payments.
“Despite the higher monthly costs, you are actually spending less on interest, too, because you are paying more off the loan as you go along.”
PCPs involve a deposit, a monthly payment and a final payment. “These are popular because the monthly payments tend to be lower, and the final payment is optional, as you can just hand the car back.
However, if you do hand it back, there may be damage or extra mileage charges,” Coles says.
It is not easy to shop around for PCPs because dealers can play with the different payments, so comparing like with like becomes all but impossible. “Don’t get sucked in by low PCP monthly payments without checking the details,” Ross says. “Always look at how much you will be paying in total for the car. So £200 a month on a £15,000 car with a low deposit may look attractive, until you realise you’ll be paying closer to £19,000 in total.”
Always get quotes for personal loans from high street or online banks before you go a dealership, then compare the deals on offer.
Don’t rush into anything
It is easy to feel under pressure. “People tend to rush into things and think ‘I like that car you’ve offered me, I can afford that monthly payment. Let’s just do it’,” Masson says.
“AutoTrader has more than 400,000 cars for sale today. So if this is not the right deal, then walk away. Don’t sign anything unless you’re 100% comfortable.”
