Motoring

Buying a Used Car

How much a used car will cost you will ultimately depend on what car you get. Yet there are plenty of ways you can reduce the final bill.

1. Year old cars are MUCH cheaper than new cars

The average new car has a list price of around £28,500. But by the time it’s one year old with 10,000 miles on the clock it costs just £21,000 – a reduction of more than 27% in the first 12 months. In the second year the depreciation rate is likely to slow by roughly half (so the second year, this average car would lose around £3,750 in value).

So picking a year-old model will dramatically slash the upfront cost. There are exceptions if you’re picking a plush model. Brands that hold their value best tend to include Mercedes and Porsche - so you won’t see too many year old luxury car bargains out there.

2. Revealed: The cheapest cars to run

To save you time and energy trying to work this out, car experts have already done this research. You can compare running costs of different

models, including the ones you’re looking to buy, on several sites, including Parkers and What Car?. But, follow these rules to home in on the cheapest cars:

• Smaller engines can be cheaper. The choice of a 1.0-litre or a 2.0-litre engine isn’t just about pure horsepower. A large engine will usually burn more fuel than a smaller one. So engine size is a vital consideration if fuel economy is an important factor in your decision. 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 a high speed, it’ll need to work much harder to keep the car moving - burning more fuel. • Petrol cars tend to be cheaper than diesel. Diesel engines are often more economical than their petrol counterparts. But don’t be fooled into thinking this definitely makes diesel a better option. These cars are more expensive, and they usually cost more at the pump than petrol.

• Manual cars are cheaper than automatic. Switching between gears is extra work - particularly to those

between one and 50, using research by the Motor Insurance Repair Research Centre (Thatchem). This is based of a range of info including performance, safety features, price of a new model and cost of spare parts. The Hyundai i10, for example, is one of a handful of cars in group one, and thus is cheap to insure.

Check the insurance group rating of the exact model you have in mind before buying at Thatcham Research.

Buying a Used Car

of us prone to stalling at traffic lights. Yet while automatics take some of the hassle out of driving, they come with a higher price tag.

• Hybrid cars are cheap to run, but cost more to buy. Technology is improving everyday with modern hybrids coming in all shapes and sizes, from superminis to luxury SUVs. Fuel-economy and cheap or even zero tax rates make part-electric models appealing, like the Toyota Prius. They also tend to hold their value for resale.

But they usually cost more to buy – so weigh up the savings.

• Check CO2 emissions, as it affects the duty you pay. Buyers of the most polluting cars pay the most road tax. But choose a car (such as the emission-free hybrid Toyota Prius) that produces less than 100g of CO2/ km and you’ll pay nothing at all. • Smaller cars are cheaper to insure. If you’re looking to save money, you’ll want a car that’s cheap to cover. The cheapest to insure tend to have a lot in common, including size. Put simply, it’ll cost you more to insure a 4x4 than a small city runaround.

Cars are placed in groups ranked

The best time to buy a used car

Once you’ve decided what car to pick, now you need to know how to get the best deal. One way to slash costs is to buy at the right time.

Dealers have targets to meet, with bonuses up for grabs. Typically, these are based on quarterly sales, making the end of March, June, September and December a good time to buy. They need to shift cars, so will be more willing to negotiate and offer attractive finance packages.

But, if you’re buying from a private seller, there’s unlikely to be a good or bad time. Private sellers don’t have targets to meet, other than the price they want to achieve. If you’re buying this way, keep an eye on prices a few months before you actually buy - if they’re heading down, you may want to wait. Heading up, and it’s prudent to buy sooner.

For a quiet time, try to avoid weekends, or the start of the month, just after payday. A dealership crammed with wannabe buyers isn’t a good place to bargain hard.

If you’re buying privately, it’s also worth picking your time when other potential buyers might be away. This could be over Christmas, or deep into the summer holidays. Think about the style of car too. Summer is when drivers dream of buying convertibles, making winter a good time to haggle for a deal on one.

‘What car do I need?’ checklist

Before you start browsing for the ‘one’, think about what you really NEED from a car. There’s no point buying a two-seater convertible if you’re about to start a family, so work out what’s realistic. Ask yourself: What are my essential requirements? Enough room for the family? A cheap car to run? A sporty number? Think about what you need... Do I need the car to do anything specific? This could include towing a trailer or fitting into a small space.

Is it for short city drives or longer motorway journeys? Does it need to be able to cruise at motorway speeds without straining?

What’s better, petrol or diesel? The fuel you want to use can make a big difference in the model you might choose.

Do I need a massive boot? Consider whether you need room for things such as sports equipment or a pushchair.

Do I want to consider an ecofriendly car? If so, a hybrid or electric car could be an option. The cost more to start with but some come with Government grants.

Need to flog your current car? Selling privately can net you 20% more than part-exchanging

If you need to flog your current wheels, you’ve two options. You can either part-exchange the car at the dealership, where the dealer gives you a price and knocks it off the total cost of the car you’re buying. Or you can sell privately – where you list the car and get cash from the person who buys it.

• Part-exchange. This can save a lot of hassle, but it’s highly unlikely to be MoneySaving. Yes, it stops you having to advertise the car or deal with potential buyers, but, and this is a big but, you also won’t get as much as selling privately. Remember, the dealer will pay less than your car’s value so it can move it along at a profit. So weigh up offers carefully. • Selling privately. This is more time consuming, but you’re likely to get more for the car, if you’re prepared to put the effort in. Options include classified listing on Gumtree (free), PistonHeads (30-day ad is £11.99), Autotrader* (one-week ad is free for cars under £1,000, while cars over £1,000 can be listed from £36.95) and Motors (12-week free ad). Other options include selling the car on eBay or Facebook.

If you do decide to part-exchange, watch for dealers inflating the tradein price of your old car – making it look like you’re getting a good deal – but at the same time charging you more for the new model. Simply check how much cash you’ll hand over once you’ve swapped cars – that is the true cost of the deal.