The used car market is huge and can be very intimidating for buyers who are not sure what they are looking for. But buying nearly new rather than brand new can save you quite a few pennies… Whether you’re in the market for a runaround or a luxury car, we can help! This guide is filled with top tips and checklists to help guide you through the process!
1. Nearly new cars are a lot cheaper than new cars
If you have ever bought a brand-new car and tried to sell it after a few years, you will have noticed a very steep decline in the value of the car after the first year! Almost as soon as the car is out of the showroom, you can expect at least a 5-10% drop in value.
So by that logic, picking a year-old car seems like the best decision! It will dramatically slash your up-front costs while also allowing you to have a pretty new car!
2. Smaller engines can be cheaper to run
Choosing your engine size isn’t all about power (unless you want it to be), but it is important to remember fuel economy is important! If you want to read more on the topic, we have a great piece of what fuel economy is.
Of course, this depends on how you use the car. A small engine is most efficient when it’s used as intended, such as to pootle around town. If a small engine is used at a high speed, it’ll need to work much harder to keep the car moving and will burn more fuel.
3. Timing is everything!
Once you’ve picked your car, you need to know how to get the best deal. One way to cut costs is to buy at the perfect time. Dealers have their targets to meet, with bonuses at stake. Typically, these are based on quarterly sales, making the end of March, June, September, and December good times to buy.
They need to get cars out the door, so will be more willing to negotiate and offer attractive finance packages. The obvious rush times are weekends, or the start of the month, just after payday. A dealership crammed with wannabe buyers isn’t a good place to try bargain.
4. What do I need from this car?
What are your main requirements? Big enough for the family? A cheap enough to run? A sporty number? Think about what you need…
Is there anything specific you need? This could include a towbar at the back or small enough to fit into a small space.
What’s better, petrol or diesel? The fuel you want to use can make a big difference in the model you might choose. Diesel engines are generally more efficient but you will pay more for the fuel.
Do I need a massive boot? Consider whether you need room for things such as sports equipment or a pram, or if you need to fit the dug in the back!
What about an Electric/Hybrid car? Hybrid or electric cars could be an option. They cost more to start with but some come with Government grants, eg, the BMW i3 has a £5,000 grant.
5. How much will it cost you?
Once you’ve decided to buy a car, you will of course have to pay for it. You can either pay the whole cost upfront or take out a finance deal. Whichever way you choose, expect to at least pay some kind of down payment before you drive off.
But there are more costs to think about:
- Finance repayments
- Fuel
- Tax
- Car insurance
- MOTs
- Servicing
6. Shop around multiple dealerships
Ask all the dealers in your area for their best deal on your second-hand car of choice. If you’re prepared to travel far and wide to find a rock-bottom price, expand your radius. Make a note of the best price, and ask others to beat it. Knowing what you want and exactly how much it is costing you is a huge advantage when negotiating with salesmen. You can always go back to your local dealer to ask if they’ll match the best offer. They might be keen for your cash, and happy to offer the same deal.
7. Haggling is not a bad thing!
Haggling is an age-old skill for the sales industry, and should not be considered a bad thing! You are expected to be pushy, you are about to spend a lot of money! But haggling can be daunting, even for experts, yet there’s nothing to be scared of.
Get them to chuck something in for free: Dealers often say they’re not allowed to give discounts but if you’re new to haggling, an easy start point is asking them to throw something in on top. Whether it’s free sat-nav or floor mats, if you need an add-on, try not to pay extra for it!
Shop in the discounted section: If the price is already reduced, there’s often more flexibility. It is likely they’ve already given up on the idea of getting the full price.
You can always just walk away: Get them to call you back. Don’t be overly keen (or at least don’t show it) as any salesperson worth his weight in gold will see that as an opportunity!
Dents mean discounts: Look for the tiniest of dents or scratches. This will take money off!
8. What to look for?
Cast a careful eye over the car’s condition, crouching down to look for scratches and dents. If the car is covered in scratches, it may be signs of a rough life which could spell trouble under the hood!
Check repairs: See if there are any signs of poor repairs, such as gaps between body panels after crash damage.
Check the oil: Do this by lifting out the dipstick to see if the level’s correct.
Any warning lights? Make sure when you turn the key your dash doesn’t light up with loads of warning signs. Look at the engine for signs of oil or water leaks, as well as the surrounding parts – and look under the car for any signs of leaks too.
Test the radio: Plus all other gadgets to make sure they work. Electrics are usually the first thing to go on an older car!
What about the tyres? Check for tread and inflation.
9. History Check:
When buying a secondhand car, it’s important to find out as much as possible about its history. This helps you find what the seller potentially doesn’t want you to know. Research suggests as many as one in four cars have a hidden history – this could include it being stolen or written off or having outstanding finance (which could cost you dearly).
The RAC provides a data check which will provide peace of mind for any secondhand car purchase.
10. Test drive checklist:
- Does it start okay? A car that is problematic to start might need a new battery or alternator.
- Driving Position: Can you adjust the seat to a comfortable setting? Can you adjust the steering wheel position? Can you see all the mirrors properly? Can you reach the pedals, gear stick and handbrake?
- Brakes + Clutch: Always make sure the brakes and clutch feel good and work properly. Both are very important, as I am sure you are aware! Plus do a three-point turn to check for play in the steering.
- Watch the temperature gauge: If it gets up to halfway too fast it may need a new thermostat. Overheating would be a much more serious issue, and should be mentioned to the salesperson.
- Is there ample room for passengers? Will people be comfortable in the back on a long journey?
- Boot space: Is the boot big enough for what you need?
- Powerful enough? Is it powerful enough to pull away from traffic lights and to keep going up hills without requiring endless gear changes?
- What’s the engine noise (or road noise) like? Are there any irritating rattles or buzzes?
- Check the suspension: How well does it soak up bumps and take corners?
- How do the gears feel when shifting? If the gears are not going in properly or at all, then this could be a very expensive problem.
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