Although buying a used car can be stressful, it can often save you lots of money compared to a brand new car. Whether you’re after a cheap urban runaround or your dream set of wheels, we have created this comprehensive used car buying guide to minimise the stress on your second-hand vehicle purchase journey.
The depreciation rate of a car is highest in its first year. On average, a new car’s value is reduced by 27% in the first 12 months. In the second year, the depreciation rate rapidly slows down, usually by half.
So opting for a nearly new vehicle that’s a year-old model will dramatically slash costs. However, this may not be the case for some high-end model from brands including Mercedes and Porsche – these hold their value best so you are unlikely to see many one-year-old luxury vehicles with drastically low price tags.
One way to slash your costs is by choosing the time of year to car shop. Most dealers have quarterly sales targets. In order to hit these, you will spot the most attractive finance packages are offered at the end of March, June, September and December. These are the times of the year it’s most important for many dealerships to shift cars, so they are likely to be more willing to negotiate on lower finance plans.
If you’re buying from a private seller, it’s unlikely to matter when in the year you purchase. For a private seller, the priority is to find a buyer that meets the price they want to achieve rather than having to meet targets. Keep a lookout on prices a few months before you want to actually buy – if prices are falling, you may want to wait. However, if they’re increasing it may be best to complete the purchase sooner.
A car is an expensive and important investment so it’s important to get it right. There’s no point buying a two-seater supercar if you’re looking for something family-friendly, so work out what’s realistic. Consider:
Most importantly, check as many dealerships as possible for their best deal on your used car of choice. Ask if they are able to price match or beat quotes found elsewhere.
There’s a lot more to check than just the look of the car. Make sure you follow our six-step check:
Check the mileage on the odometer. This should be in line with the figure shown on the last service. The average car should cover about 10,000 miles per year.
Whether you’re buying from a dealer or private seller, any seller should expect you’ll want to have a feel of the car in running.
NOTE: Check you’re insured before doing a test drive. If you’re buying from a private seller ask them to take you for a spin if you yourself wouldn’t be covered by insurance. If you have comprehensive insurances you may have third-party insurance cover that allows you to drive another car – check this with your insurer.
Many dealers offer ‘approved used’ option. These vehicles will go through thorough checks before being sold. Faulty parts will be replaced before sale and the car will be made to look and feel new. So although you may pay more when buying from a dealer, this route often provides peace of mind and gives makes it easier to make a complaint in case things do go wrong.
Private sales are usually the cheapest way to buy a car. It is your responsibility to check the car’s condition and history if taking this direction. You have fewer rights if something goes wrong that if you were to buy from a dealer. Go to a seller’s home for a car viewing, not a carpark or station. Suggesting to meet elsewhere could mean they don’t want you to know where they live if any issues arise.
Need further help taking your first step towards finding a used, reliable and affordable dream car? Call us on 01254 956 777 or drop us an email email@example.com for further advice and help. At Hippo Motor Finance, we have hundreds of used make and models for you to choose from.
We expect more than 51% of our customers to achieve this rate.
|Loan Amount||Total Cost of Credit||Representative APR||48 Monthly Payments||Deposit Amount||Loan Term||Total Amount Payable|
|£7,500||£3019.16||19.1% APR||£219.77||£0||48 Months||£10,519.16|
We are a broker not a lender and our registered office is Trident Park, Trident Way, Blackburn BB1 3NU. Our contact number is 01254 919000