IF you’re not a petrol head, then buying a new car can be a minefield.
A second-hand runaround is cheaper -– but will you get stung with repair costs?
Sam Partington speaks to motoring experts to answer your most common car-buying queries. Follow these three steps to finding your motor match.
1) WHAT TYPE OF DRIVER ARE YOU?
FIRST, ask yourself what sort of journeys you are are most likely to use your car for . . .
DRIVING TO AND FROM WORK: “IF you’re racking up motorway miles, consider saloons or estates with strong miles per gallon figures and cruise control,” advises Mike Fazal, motoring expert and chief executive of leasing comparison site Leasing.com.
Those choosing a company car should consider an electric or low-emission one, which will lower the amount of tax charged on this benefit.
FERRYING THE FAMILY AROUND: THINK long-haul, not just the school run.
Consider practical features such as boot size, flexible seats, rear legroom, anchor points for child car seats and how easy it is to get the kids in and out of the back.
“SUVs are popular due to their height and space, but don’t rule out estate cars if you want a lower ride height and more capacity,” said Mr Fazal.
WEEKEND TRAVEL: FLEXIBILITY and storage room are key considerations if weekend road trips and hobbies are the main reasons you want a car.
Boot space, roof rails, fold-flat seats and towing capacity will be high on your list of priorities.
For outdoorsy drivers, compact SUVs or estates with decent ground clearance can be a middle ground between fun and functionality.
IF YOU’VE JUST PASSED YOUR TEST: NEW driver insurance is expensive, so go for a small hatchback with a modest engine to keep costs low.
Automatic emergency brakes, lane assist and multiple airbags can lower premiums. Light steering and parking sensors make life easier.
2) NEW OR USED?
ONCE you’ve worked out your budget, it’s time to weigh up your options . . .
Pros of a new car:
- Reliability
- Full manufacturer’s warranty for three years or more.
- Latest safety technology
Cons of a new car:
- Can lose around 20% of value after purchase
- More expensive to insure due to higher replacement and repair costs
Pros of a used car:
- Budget-friendly
- Opportunity to haggle with the dealer
- Insurance can be cheaper depending on make, model and driver’s history
Cons of a used car:
- Not as reliable
- Some used cars not eligible for Personal Contract Purchase (PCP) finance
IF you choose used, inspect the car closely with someone who knows about motors.
Lucy Sherliker, from car finance broker Zuto, said: “It’s essential to review the service history and ensure there’s no outstanding finance.”
You can do an online vehicle history and valuation check using the car’s registration number.
“History checks reveal if the car has been stolen or recently written off,” she added.
3) DIFFERENT WAYS TO BUY
THERE are three main ways to buy or lease a car using a financial agreement: personal contract purchase, hire purchase and personal contract hire/ leasing.
Alternatively, you can take out a personal loan . . .
PERSONAL CONTRACT PURCHASE
PUT down a deposit to secure the car. Make monthly payments for three to five years.
Hand the keys back at the end, part exchange it for another car or pay a large one-off payment at the end to own it.
This has lower monthly payments than other options.
But watch out for mileage limitations in the contract. Exceed those and you pay a penalty.
Best for: Drivers looking for lower monthly payments who plan to change cars every few years and drive predictable mileage. Popular for new or nearly new cars.
HIRE PURCHASE
THE finance company owns the car until you make the final payment, then it’s yours.
You’ll pay a deposit and can stretch the term over five years.
There are no mileage limits, but hire purchase is more expensive than PCP deals.
Best for: Drivers who want to own the car outright at the end without a large final payment or those looking for an older vehicle.
PERSONAL CONTRACT HIRE/LEASING
YOU pay a deposit and there is no option to buy the car. These deals usually run from one to four years.
They are cheaper to run as most leases include extras such as road tax, manufacturer warranty and breakdown cover.
Best for: Buyers of new or nearly new cars who want predictable monthly costs.
PERSONAL CAR LOAN
WITH this, you take out a loan with a bank and use this to pay the dealership, so you own the car from day one.
No deposit is needed for this agreement and you pay a fixed interest rate on top of the debt.
The amount owing is repaid in monthly instalments for up to seven years.
Stretching the term lowers the monthly payments, but ups the cost of the debt overall. You can sell the car at any time, but watch out for early repayment charges.
Best for: Drivers who want the flexibility to sell their car when they choose and those with clean credit history who will be offered the cheapest rates.
Know your rights
IF your new or second-hand car breaks down soon after you buy it, and it’s under the manufacturer’s warranty, you may get it repaired for free.
The dealership will check the car and report to the manufacturer before repairs are approved. If the damage was caused by you, you cannot claim.
Consumer rights mean if you contact the seller within 30 days because the car is unfit, poor quality or not as described, you can get a full refund.
After 30 days, the seller has one chance to repair or replace it.
If problems continue, you can request a partial refund and keep the car, or return it for your money back minus a usage deduction.
If you report a problem after six months, you must prove it existed at the time of sale.
