Top Tips to Remember…
- Do your homework
Which car is best for you within your budget? Check total costs of your vehicle like cost of insurance, tax, miles per gallon.
- Don’t view a car on a wet day or at night
Water or poor light can hide scratches, dents and rust. These will be costly to repair later.
- Check the tyres
Uneven wear can suggest poor aligned tracking, this can be sorted easily but may be more serious.
- Take an Expert to view
They’ll know what to look out for and are more likely to spot any faults.
- Always take a test drive
How does it handle? Is it comfortable? Are there any rattles?
- Ask for the service history of the vehicle
Compare these with the current mileage on the dashboard.
- HPI check
It’s essential and easy to get a HPI check done on any vehicle. This can help identify what work has been carried out on the car, if it has been stolen, if there is any outstanding finance, or if there are any mileage discrepancies.
- Are all the keys available?
Expect to receive two keys. Lose the only key and everything may have to be reset – and can cost hundreds to fix.
Ways you can Pay…
- Cash – Nearly always the most cost-effective way to buy a car if you have enough in savings.
- Personal loan – With a personal loan from a bank or building society you can spread the cost over one to seven years. The monthly repayments can be higher than for other options, but you own the car and the total amount you pay should work out less than most other methods. Personal loans are usually the cheapest way to borrow over the long term. But if your credit rating isn’t good you may find it difficult to get one. You may need to consider one of the financing methods offered by car dealers instead.
- Hire purchase – With hire purchase you are committing to buying the car outright via a secured loan. After paying a deposit of normally around 10%, you make fixed monthly payment over an agreed period (usually 3 – 5 years). The car isn’t yours until after the final payment.
- Car Leasing – This is more like a long-term rental, in that you make fixed monthly payments to use the car until the contract expires. There are two main types of car leasing – personal contract hire (PCH) and personal contract purchase (PCP). The payments tend to be lower than with other types of car finance, but there’s a mileage restriction. And with PCH you’ll never own the car, whereas with PCP you have the option of buying the car at the end of the contract by making a ‘balloon payment’.
Article supplied www.moneyadviceservice.org.uk/