Used Car Buying Tips

Do you buy from a car dealer or an auction?

There are many options for you to buy your next car and each and everyone of them have their good points and bad points. If you understand the pros and cons you can decide which option best suits you?

Did you know that more than six million used cars change hands every year? Where can you go for your next car? Do you want a great service or a rock bottom bargain? Or do you want both?

Where you choose to buy a car from all depends on what's important to you. So I've reviewed various options below... 

A Franchised Dealer

This is a dealer that sells new and used cars and specialises in a particular make, such as Ford Dealer, Vauxhall Dealer, BMW Dealer. As the dealer specialises in a particular brand they attract people wanting that particular make. They specialise in servicing that particular make and are governed by stringent guidelines put down by the manufacturer. All this ends up with a quality outfit with the most expensive options available as a source for a used car. But you shouldn't let that put you off, just be prepared to get your Turkish hat on and do a bit of haggling. Generally franchise dealers are reputed to offer the best service and after–sales support which many prefer as they sacrifice low prices to get the level of service they prefer. In the used car section many run approved used car schemes. These scemes provide you with a selection of used cars that have undergone a thorough pre–sales inspection. But admittedly not every Franchise Dealer operates as efficiently. The big dealer groups operate under heavy pressure to reach high targets so they can be a bit hardcore with their sell, sell, sell approach.

When buying your used car from a franchised dealer you should find that:

• it's almost like buying a new car – but don't get sucked into spending more than you originally bargained for
• most of the cars will probably be less than three years old... a nearly new car (fairly steeply priced) but no doubt reliable 
• you'll be offered a test drive quite easily... they'll probably chatter you to death in the process but the whole experience will be fine
• you can part-ex your old car – you're unlikely to get the best price for it although it'll be a quick and painless way to get rid of it
• you'll be given good warranty terms with plenty of options to upgrade to a longer and better policy even future servicing packages

Be warned

• That they'll try to sell you everything under the sun with your car.. just take a breather to make sure you want what's on offer 
• The costs of some of the warranty upgrade packages can be extremely expensive... such as £700 for a warranty
• That the finance facilities are usually limited to one or two lenders which can greatly limit your options 
   

Independent Car Dealers

These are likely to stock a wider range of cars than franchise dealers including older cheaper ones and the prices should be much keener too.
You'll find that:

• you'll get a very competitive trade–in price on your old car
• you'll be offered a test drive, unless there's something wrong with the car
• dealers specialising in certain makes or models can offer more price and specification options

Be warned

• Watch out for imports, if they're under 3 years old they've probably not got the remainder of a manufacturers warranty left on them. Check the spec carefully make sure it's got what you want.
• The variations on warranty that independants offer are wide ranging – not all independants can offer you upgrade warranties
• The after-sales and service facilities at some independants are limited. Not all independants have their own service departments, some not even a mechanic

Car Supermarkets

The number of these has increased over the past few years. They all have their own web sites and can be found adverted in motoring magazines and newspapers. You might have to travel further to visit a 'car supermarket site', so doing your research in advance before travelling would be a good idea. You'll be rewarded with a huge choice of cars at competitive prices (dependant on which supermarket you go to that is). 
You should find that:

• The price on the screen is the price you pay – they don't do Turkish, so haggling generally doesn't get you anywhere.
• They may take your old car – but their offers are usually the lowest available... so make sure you know what your car's worth before you arrive.

Be warned

• Watch out for imports. Lots of supermarkets sell European imports that have slightly different spec than UK... and their warranty expires after 12 months old. 
• Test drives aren't usually available or at least very difficult to arrange – so make sure the car's you're after is the right one for you before visiting.
• You may only get 1 months warranty – but you'll be offered upgrade warranties to choose from. 

Auctions

Buying a used car at auction is a gamble even if you're a trained professional. So it's not advisable to run the risk unless you're well–informed, know what to look-out for, know what to avoid and are aware of current price trends. Most auctions will take imaginary bids to get an excited buyer to pay more for a car, so the auction house can please the vendors that give them the cars to sell.

Be warned

• Auction terms of sale vary from one auction to another – do your homework know what you're getting into.
• It's very easy to get carried away, and auctioneers are professionals at reading peoples behaviour for getting more money for the cars
• Part exchange is definately not available.
• Your legal rights are very limited compared with buying from a dealer. There's no warranty and once your bids accepted you've the car's yours even if the engine or gearbox packs up on the way out of the yard.
• All auction charge a buyers fee which is added to the bid you bought the car for. The buyers fee can vary from £80 to £550. 

Private Sale

Buying private you've got a big choice and sometimes the lowest prices, but you must do your homework. It's always best to get an inspection done by an expert before you buy.

Be warned

• Your legal rights are limited.. once you've bought you've got no come back unlike buying at a dealer.
• You won't be able to part exchange 99% of the time 
• You won't get any guarantee, warranty or after–sales service
• A private seller is not obliged to tell you the truth about the car unlike a dealer
• If the seller does not tell you all the facts you have virtually no options for a refund or recourse
• Many written-off cars are sold privately, even ones still on finance, you must get the car HPi checked before you buy