Cars – Buying a car

- New or Used?
- Understanding your needs
- Cars for disabled drivers
- Your budget
- Finance
- Where to buy a car
- Taking a car for a test drive
- Test drive checklist
- Used car checklist
- How to negotiate
- Paperwork
- Your rights

New or Used?

When it comes to buying a car, you have to decide whether it is going to be a new or used car first. It is always worth to compare prices between new and 1 or 2 year old models as you can save good sum of money by buying a used one.

Most of the new cars are protected by a three year warranty and some manufacturers like Kia even offers seven year warranty. With a new car you can add some more specification according to your needs and also interest free payment options could suit your budget very well.

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Understanding your needs

There are many things you need to consider before buying your next car and you can start your homework by thinking about the reasons for selling your old one if you have.

We have prepared a brief list for you and it might help you to decide what you need from your next car.

The size of the car 
How big is your drive, garage, car port, or parking space at work and home? There is no point buying a car that is going to be too big.

Cabin and boot space
Do not forget that it is not just you who will be using the car. Dogs, children and other halves must be able to fit inside. If you are carrying kits around or going away at weekends with your family then you need to consider extra room in your car boot.

How comfortable you are when you sit? 
When it comes to driving a car it is important that driving seat should match to your size and your legs are not above the steering wheel or your head is not out of sunroof?  Also consider people travelling with you too. How comfortable will it be for them sitting in the rear seats?

Does the engine size matter?  
What do you need your car for? If you need to tow a caravan then you need more engine power but if you need a city car then a hatchback with a small engine will help you better in saving money. If you have children instead of a coupe an MPV might suit better to your journeys. So knowing what you need it most will let you the right car.

Which category?
-City cars: A city car is a small, moderately powered automobile intended for use in urban areas. The city car's convenient speed and occupant protection allow relatively safe operation in mixed traffic environments and in all weather conditions. Typical examples are Citroën C2, Suzuki Swift, Smart Forfour and Toyota Yaris.
-Small hatchbacks: One of the most popular types because they are so versatile. Prices, conditions and specifications vary widely in a market almost over-crowded with hatchback choices. Renault Megane, Fiat Punto, Seat Ibiza, WW Polo can be typical examples.
-Family cars: Very cheap, especially ex-company cars with high mileages.
-MPVs: Smaller compact MPVs are better value than traditional hatchbacks. The big MPVs can be difficult to park in town.
-Sports cars: High image models are always pricey, but there are some mainstream badges that represent good value.
-Executive cars: Lots of equipment and ability. Low image badges struggle to muster much interest on the used market so prices are extremely cheap.
-Luxury cars: Massive depreciation means you can really move up in the world for very little money. But then you have to live with massive running costs.
-4x4s: Large petrol 4x4s are cheap, and smaller lifestyle 4x4s are quite pricey when you consider they are no more practical than family estates.

Petrol or Diesel?
Compared to petrol, diesel engines are good because of excellent fuel economy and reliable engines. Main disadvantages are that they might be overpriced and diesel is more expensive then petrol. Also with some models diesel engines might produce more noise.
Usually the general opinion is that if you are travelling a lot using MOTorways, diesel cars can save you more money because of fuel efficiency and if you are using your car in the city a small size petrol engine can help you better.
How safe is it ?

Another important factor you need to consider is safety of your car. What would like to have in your next car ? Airbags ? ABS ? Car alarm ? Tracking system ? Consider the people will be travelling in your as well. Do you need child locks in the rear doors ? Are you carrying expensive tools in your car ?

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Cars for disabled drivers

The MOTability Scheme enables disabled people to obtain a car, powered wheelchair or scooter simply by using their government-funded mobility allowances. Customers exchange their allowance for a worry-free mobility package, including:
-Car, powered wheelchair or scooter
-Insurance
-Servicing
-Tyres
-Breakdown cover
-Adaptations and wheelchair accessible vehicles are also available.
More information can be found on their website at www.MOTability.co.uk. You can also call on 0845 456 4566 to get more details.

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Your budget

When deciding on your budget you need to be very realistic about your current and future expenses and must stick to it. Calculate your regular expenses like mortgage, utility bills, etc and find out how much money you can spend on your next car. If you are offered cars costs more than your budget you should kindly refuse it. Remember that you may need to pay maybe more money for your road tax or insurance and also servicing your car in the future. It is always worth to go through all these costs and decide on a realistic amount you cspend on your car.

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Finance

When you are buying your car through a finance scheme you should always avoid sudden decisions. If you have really liked the finance offer you got from the dealer get a written quote and do some research to find out cheaper options. Sometimes you can find a better deal on similar cars with a different manufacturer or even banks can offer better rates on the same amount of credit loan. So do not rush into it and always search the market and see if you can beat it.

Another recommendation on this topic is always try to bargain with dealer. Most of the time you can have a bit more discount or a few more extras. Ask the finance offer in details and find out if there is any hidden costs. If you are not clear about the terms and conditions do not sign it until you are sure what you need to know.

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Where to buy a car

When it comes to buying a car most people prefer to buy it directly from a main dealer because you can see many different models and check the car or can have a test drive. The prices on the cars are usually above the average but you should be able to negotiate and reduce the price to your target price. Most of the dealers run necessary checks and service their cars before selling them but you should always ask the details.

Another place to buy cars is internet. You can find many cars advertised or auctioned by the owners but you must very cautious against scams. You should always avoid paying any money until you are sure to buy the car. If you are buying your car online through an auction site like Ebay, make sure you run an HPI check on the car and checked sellers ratings and feedbacks. Also you need to make sure that you are happy with seller’s term and conditions and return policy. It is always recommended to see the car in real before you buy it and then bid on it.

“Buying used cars” section also gives you more advice on what to be aware of when buying second hand cars.

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Taking a car for a test drive

You have found some cars which matches your needs and they are all within your budget and you would like to test drive these cars. If you can, it is strongly recommended that you drive them one after another so that you can compare the performance easily. Week days are better to go for a test drive because the roads are quieter and you can have better results. Try to use carriage ways, roundabouts, MOTorways during your test drive as it will help you to understand how the car handles different conditions.

While you are driving you can also test some other features like wipers, turning lights on and off, air-conditioning, radio and cd player and digital displays. One important thing to check out is the temperature gauge on the display and see if the engine is overheating or it is stable. Make sure you have gone through “Test drive checklist” and printed a copy of it before you have your test drive.

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Test drive checklist

See testdrivechecklist.pdf

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 Used car checklist

Whether you're buying from a dealer or privately, make sure any used car you're thinking of buying is in fact what the seller says it is.

It's always best to take someone with you when you look at a car - not only because four eyes are better than two, but also because it helps you keep a level head.

When you are inspecting the car make sure it is day time and you have enough light to check the car. Don’t rush to inspection very quickly and take your time to cover all the check list and questions.

Front/rear bumpers Look for any scratches or scuffs. Are there any bumps ? Do they line up with surrounding panels?

 Front wings/bonnet Are there any scratches, dents and do the panels all line up evenly?If not that could be  sign of accidental damage. Do the headlights/foglights line up evenly? Do the lights work properly? Are the lights chipped?

 Doors Do all of the doors open without any creaks? Do the doors close smoothly without being slammed? Do the locks work properly? Are there any scratches on the outside paintwork? Rips, scuffs or stains on interior of doors? Do the windows go up and down smoothly? Are there any scratches on the glass, or front and rear 'screens? Are there any scrapes on the bottom edges of the doors?

 Rear wings/boot Are there any scratches, dents and do the panels all line up evenly? If not that could be a sign of accidental damage. Do all of the lights work properly, including the foglight? Are there any dings in the boot? Is the exhaust damaged from poor reversing? Excessive soot on the bumper from the exhaust?

 Wheels and tyres Are they all the same type of wheel? Are they the standard wheels for the car? Any kerbing? Are the tyres evenly worn? Any nicks or cracks in the edges of the tyres? Are the tyres all the same make or mix and match?

Interior Are there any tears, rips, stains or scuffs ? Any loose seats? Are the seatbelts in good condition and run smoothly? Do the seatbelts hold tight when given a firm pull? Is the driver's seat excessively worn for the indicated mileage? Are the steering wheel and foot pedals excessively worn? Is the indicated mileage backed up by MOTs and service records? Are the carpets damp from leaky doors or sunroof? Holes in the dash form mobile phone holders? Holes in trim from aftermarket speakers and stereo? Does it smell of cigarettes? Are there any cigarette burns? Does every button work as it should? Is the steering wheel straight when wheels are aligned ahead? Are all of the keys present? Is more than one key needed for ignition, doors and boot? Does the air-conditioning, if fitted, work properly? Is the hood of a convertible in good condition and leak free?

Underneath Is anything hanging loose or caught on the underside? Any leaks? Rust?

 Mechanicals Does the engine start easily and settle to an even idle? Does it rev freely when you press the accelerator? Are there any obvious noises from the engine? Any leaks? Are all of the fluids to the correct levels? Remove the oil filler cap with the engine off. Is the oil clean? Is there any white sludge - this could mean water contamination? Do all of the pedals work smoothly? Does the gear lever engage smoothly in all gears? Does the gearbox or clutch make any unpleasant noises? Does the clutch take up smoothly? Does the clutch slip? Accelerate hard in a high gear to test this Does reverse gear engage and work smoothly? Do the brakes work strongly? Do the brakes pull to one side when the pedal is pressed? Any noises from the suspension? Push down hard on the suspension. Does it settle quickly? Does the car roll too much in bends or feel too firm? Is the exhaust quiet? Are there any rattles from it? Is there any smoke from the exhaust?

 Paperwork Are all of the documents present? If not, why? If the car is more than 3 years old is there a full service history including MOTs? Do the MOTs run concurrently? If not, why? Does the seller's name match the details on the logbook? Is any work on the car backed up by receipts? Are viewing the car at the address on the logbook? Do the chassis and engine numbers match those on the car? Does the colour, fuel type and engine capacity match?

After you have inspected the car but still have some questions you can always book an inspection test and buy it with confidence. In order to find a professional vehicle inspection you can run a search on search engines and compare the level of inspections and prices easily and then book one of them. You need to agree with the seller if you can run an inspection on a car or not. Our recommendation is always to run a professional vehicle inspection on a car you would like to buy because it will give you a very good idea about how good the car is and which problems likely will occur in the future. Once you know the overall condition of the car it will be easier for you to decide if you still want to buy it or not.

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How to negotiate

First check different sites and dealers and get prices. Many customers make the mistake of trying to figure out what the dealer is actually paying and then try to negotiate around that number. The problem is that even with all the information available, there is still too much information you will never get such as dealer cash, stair-step cash, or other incentives. Better to focus your research on simply finding the lowest price. Then you can either go with that dealer or press the dealer nearest you to match the lowest price you found.

If you have a trade-in or need financing you should research those as well. Negotiating does not have to be difficult if you are prepared, just check all the numbers and ensure you are looking at total dollars with everything included minus all consumer incentives.

For new cars :

A lot of people who buy a car for the first time are surprised by what's added on to the new car price. These aren't spoken of in new car price negotiations. When you negotiate a new car price, make sure you're factoring in taxes, extra fees, shipping and other relevant costs.

New car prices can be tricky, but if you know what to watch out for, the new car price won't be as high as it could have been, because you'll get a better new car price. When negotiating a new car price when buying a car, it can be tricky.

New car prices are often based on what the salesperson thinks they can get from you in terms of a new car price. This is why it's best to never ask a salesperson what new car price will work per month. They'll often ask you this question, and your new car price will likely go up a lot because the salesperson knows you'll pay

When you negotiate for a new car price, you need to understand all the technical terms and jargon, also being versed in the most common options packaging. There may be things like individual options included in the new car price, when in fact there usually is a bundle of options grouped together and sold to the dealer at discount. For example, power steering, automatic transmission and air conditioning might be sold separately to you as part of the new car price, but the dealer gets a profit from paid the new car price at a discounted rate.

One of the best ways to demonstrate to a car salesperson that you're familiar with new car prices is to ask what the dealer invoice new car price is. The dealer invoice is the new car price that the car dealer has to pay the manufacturer. The salesperson will try to keep you from finding the proper new car prices by talking about what a great deal you'll have - this may be true, but it can be smoke and mirrors when finding new car prices. This is different (and often lower) than the new car price that's posted on the car's window. They'll have all the paperwork and everything ready to be signed and you likely wouldn't have known. Find new car prices first by waiting until this point, then asking what the dealer invoice is.

The salesperson will more than likely be cooperative and help give you a lower new car price. However, if you say this straight away, likely the salesperson will be frightened and not willing to work with you. Getting a good new car price requires that you be patient, and know that the salesperson will be more willing to work with you if he or she has already spent time talking about the possible deals - after all, you're a customer trying to find good new car prices, and a lower sale is better than no sale at all.

For used cars :

Used cars are a little more difficult to negotiate on as each vehicle is unique. If you are able to negotiate too good of a deal on a used car, it could mean there are issues with the car's quality or past history. As your parents probably have told you before "If it sounds too good to be true, it is".

There is no real way to tell what a dealer has paid for a used car so you will have to base your decision on other facts such as checking multiple dealers with similar cars and using car-pricing sites

Always expect to receive a discount. If you go into a buying situation not expecting to receive a discount, you will not get one. Be positive and you'll be amazed how easy it is when you ask the right questions.

Build rapport but do not make a friend. Blunt or aggressive negotiation will not work. Rarely does a car seller need your purchase so badly that they will tolerate rudeness. Chat to them and be warm whilst looking at the car. But do not get too friendly or feel sorry for the seller because you want to get a good deal.

Ask for a discount without being embarrassed. Tell the sales person: “I would love to buy this car, but my wife/husband will go nuts if I pay this price. What can you do to help me?” It does not necessarily matter if your partner does not mind what you pay - or even that you do not have a partner. This is called using higher authority. It means that you can remain on good terms with the seller, but still push for a better deal. It makes the seller more inclined to move on price.

Never accept the first offer. It makes the salesman think he has offered too much but he still has more discount to give. Whatever they offer say, “that helps, but I'm still not sure I could face my partner.”
Or: “Surely you can do better than that?”

Use the power of silence. If the salesman makes you an offer, or you have asked him to improve his offer, resist the temptation to speak. Just wait. For several minutes if necessary. The silence will be painful for you, but more painful for the salesman. Eventually he will crack and start to offer you ‘sweeteners’ to close the deal.

Know your prices. When dealing with garages, make sure you know what's on offer at other garages in the area. Many will match the offers of their competitors, so you just have to ask, “Will you match your competitor's prices?”

Ask garages for added value. If you have exhausted the potential discount options, ask the garage for bonus items. For example say, “the stereo's not very good and all the mats need replacing.”

Let go of the emotion. It is hard not to be excited when buying a car. But you need to let go or you will not be able to negotiate the best deal. Always tell yourself: ‘There will be another car that is just as good or maybe even better’.

Ask questions in garages:

“How's business?”
If it is good, say: “Oh well, I was hoping to get a deal, but I'll leave it.” If it is bad, say: “Well, if I can get the right price, you might get a sale today.”
“How can you help me get the price down?”
“When will there be a special offer on? I can come back.”
“Who has the authority to make decisions on discounts?”
Questions for Private Sellers:
“Why do you want to sell?”
“How quickly do you want to sell?”
“What can you do on the price please?”

Start low and concede reluctantly. If you can afford £5,000, offer less so that you have room to move. If they baulk at your offer, stay calm and ask: ÒWhat would you accept?Ó Then, pretend to baulk yourself, perhaps even wince. And make another offer.
Avoid splitting the difference, or meeting in the middle. If you offer to split the difference the sales person will split it again, which means you have moved 75 per cent of the way towards their price and they have only moved 25 per cent towards you.
If the sales person offers to split the difference, say: “I cannot do that, but I'll meet you half way between my offer and the offer you just made.”
After the negotiation: Pay a deposit of £50 - £100 and get a written receipt, stating the price, car details and seller's information.
When you return to collect the car: Pay the balance by bank cheque (just ask your bank for a bank cheque to buy a car). Ensure you have the V5 log book (filled out by the seller to confirm the sale) and a bill of sale before you drive away.

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Paperwork

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Your rights

If the second hand car does not meet these requirements you have a right to claim against the dealer for breach of contract.Your right to reject a second hand car If there's a problem with a second hand car soon after you’ve bought it, for example, the car develops a problem you wouldn’t expect for the car’s age and mileage, or it turns out to be not what you’d been lead to expect, you may have the right to ‘reject’ the car and get your money back.

However, you have only a ‘reasonable’ time to reject a second hand car. There’s no clear definition of what a reasonable time is – you probably need to do it within three or four weeks of buying it. But if you reject a second hand car you must stop using it. And if the fault is very obvious you may have less time.Your right to claim for the cost of repairs If it’s too late to reject the second hand car (or you don’t want to) you can ask the dealer for a repair or replacement. If the dealer refuses, you could:

claim from it the cost of getting the second hand car repaired elsewhere

claim for a reduction in the purchase price, or

return the second hand car and get the money you paid back, less a deduction for the use you’ve had (called ‘recision’)

However, if your claim is worth more than the small claims limit where you live (£5,000 in England and Wales, £750 in Scotland or £2,000 in Northern Ireland) you may need to take advice before you act, because you may risk facing time-consuming and expensive court action.

If you get a warranty or guarantee with a second hand car, you may be able to claim on that to get any problems fixed. However, this doesn’t affect your legal rights, and you could still either reject the car, or claim against the dealer.

How a trade association can help with second hand car problems

Some motoring trade associations have complaints schemes that can sort out problems between car dealers and customers. Check whether the dealer you bought from is a member of a trade association and whether it has a complaints scheme. 

One of the main trade associations, The Retail Motor Industry Federation (RMIF), has a conciliation and arbitration service to deal with disputes about second hand cars.

If you bought your second hand car on credit

If you bought your second hand car with a credit card or with credit provided by the dealer, the card company or credit provider is jointly liable with the dealer for any breach of contract, so you can also claim from them. If the credit company refuses your claim, you could then take the matter to the Financial Ombudsman Service.

If you bought your second hand car on hire-purchase (HP)

If you bought your second hand car on HP, your rights are against the HP company, not the dealer, so you must take up any problems with it, not the dealer. However, you rights are different and if you have a serious problem, and the HP company won’t help, you will need to seek legal advice.If you buy a second hand car privately If you buy a second hand car from a private seller you have fewer rights than if you buy from a dealer. Key parts of the Sale of Goods Act don’t apply – there is no legal requirement that a car is of satisfactory quality or fit for its purpose.
However, legally, the seller must:

accurately describe the second hand car (for example, an advert must not say ‘one owner’, when the car has had several)

not misrepresent the second hand car (tell you something about the car which isn’t true – so, for example, if you ask whether the car has ever been in an accident, the owner must answer truthfully)

If the second hand car you buy was stolen

Anyone selling goods (including second hand cars) must be the legal owner or the sale doesn’t count. If a second hand car is stolen, the legal ownership of the car usually remains with the original owner. So, even if you buy it, in most cases it won’t legally belong to you.
If you discover the second hand car you’ve bought is stolen you should contact the police. It’s most likely that you will have to return the car to its rightful owner. 

There are some exceptions to this and the situation is complex so you should seek legal advice. The only way to get your money back is to try and reclaim the cost of the car from the person that sold it to you.

If the seller has mislead you about the second hand car

If something you buy is not ‘as described’, or if the seller is guilty of misrepresentation, you are entitled to:

give the second hand car back and get your money back, or

if you want to keep the car, ask for compensation (usually the cost of any repairs it needs)

However, if you buy a second hand car that was not described as being in excellent condition or good working order, and it breaks soon after you buy it, you do not have any right to reject it, or to claim compensation.

Some unscrupulous second hand car dealers might pretend to be private sellers to get out of their legal obligations. If you think a dealer is trying to pretend they're a private seller, do not buy from them and report them to the local trading standards department.

Buying second hand goods at auction

When you buy a used car at auction you have very limited legal rights. Though the Sale of Goods Act generally applies to cars sold at auction, auction houses are allowed to exclude its main conditions (such as being of satisfactory quality, as described and fit for the purpose) if they put a notice on display in the catalogue.

So make sure you check the auction house conditions before you bid. When you buy at auction, your rights are against the seller, not the auction house.

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Resources being used in articles:
www.whatcar.com
www.which.co.uk
www.autotrader.com.uk
www.theaa.com
www.rac.com