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Best way to buy a new or used car

Get the best price & use our vital checklists to avoid rip-offs

Amy Roberts
Amy Roberts and Sarah Monro and Kelvin Goodson | Edited by Johanna Noble
Updated 3 April 2024

Buying a car – whether used or new, cheap runaround or dream machine – can be a MoneySaving minefield, particularly if you're no petrolhead. This guide is packed with top tips and checklists to get you motoring and minimise the chance of any nasty surprises. 

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In this guide

Also see our car finance guides...

FREE reclaim tool: Are you due £1,000s back from the hidden commission scandal?
Hire purchase: Looks like a loan, but you won't own the car until it's fully paid off.
Leasing: A long-term car rental agreement that offers low monthly repayments.
Personal contract purchase: Flexible, but you won't own the car you buy.
Personal loans: Buy your car with a loan.

New petrol and diesel car 'ban' pushed back. In November 2020, the Government announced that new cars and vans powered wholly by petrol and diesel would no longer be sold in the UK from 2030. In September last year, Prime Minister Rishi Sunak announced this would be pushed back to 2035. 

Top tips when buying a car – new or used

How much a car will cost you will ultimately depend on what you get. Yet there are plenty of ways you can reduce the final bill. Below are our tips for buying a used car, plus information for those insistent on stumping up for a brand new car. 

  1. Year-old cars are MUCH cheaper than new cars

    A car's value starts to depreciate as soon as it leaves the showroom, so even picking a year-old model will dramatically slash the upfront cost. 

    Auto Trader says a new car loses up to 50% of its value in the first three years. Some lose their value even faster. That's a massive whack to lose on such an expensive purchase. Even a car that's one or two years old or an ex-demo car is typically far better value than a brand new one. 

    Some models shed cash quicker than others, meaning you'll get a lot less when you come to sell it on. So check this out before hunting for a new model (especially if you plan to sell after a few years).  

    If I do buy a new car, how can I cut the costs?

    • 'Pre-reg' cars can be at least 20% cheaper

      Cars classed as 'pre-reg' come with chunky discounts off the list price because in theory they've already had one owner.

      The way it works is that the dealer 'buys' the car, and registers it to the dealership. This is often done to artificially meet sales targets for the month or quarter. Dealers do this as they can often make more from bonuses for hitting targets than they can from selling you a car.

      But what it means for you is that you can buy a new car for a hefty discount, because its records will show it's already had one owner. It's all the benefits of a new car at a nearly new price.

      You can buy pre-reg cars just as you would any other new car. Many dealerships pre-reg cars to hit seasonal targets, so call around and ask if they have any in stock.

      A pre-reg car shouldn't be more than six months old, and you should get at least 20% off the ticket price, but you may get as much as 70% if it's an unpopular model and the dealer is desperate to shift it.

      If there's one you're interested in, haggle hard. Remember these cars have already served their purpose for the dealer by boosting sales targets.

      It's also worth asking about test-drive cars or showroom models – the savings can be massive.

      However there are some cons:

      • You won't be able to order any specific bells and whistles on a pre-reg – you'll have to take the car as it is, or pay the extra for a paint respray if you want a different colour.

      • The warranty will have started from when the car was first registered, so you'll have lost a bit of cover from this.

      • You may not be able to get the same attractive finance packages and low APRs (annual percentage rates) on a pre-reg that you get on unregistered new cars.

      • Resale values won't be as high as an unregistered set of wheels, as when you come to sell, the car will show two previous owners, not one.
         

    • Buy a run-out model and slash the cost by 30%

      'Run-out' models are often found with discounts of up to 30% on the original price as dealers make way for shiny new stock on the forecourt.

      However, check the resale price as these cars will slump in value when their replacements arrive. You can do this by putting the registration into a free online car valuation tool such as those offered by Auto Trader and Parkers.

      These 'run-out' models can be bought from main dealers. You may also find them listed with brokers online or at car supermarkets.

      To find out when to look for these 'run-out' models keep your eye on magazines and websites for reviews of the latest models – you can then look out for deals on the models they supersede.
       

    • Online broker prices could be up to 20% cheaper than dealerships

      Chunky savings can be gained from online car brokers. These typically bulk-buy popular models and pass on part of the saving to the customer. They can often undercut even the most generous dealers. Online brokers are less likely to take your existing car in part-exchange, but that's not MoneySaving anyway.

      Examples of popular brokers that work with a large network of franchised dealers include Broadspeed, CarFile, Drivethedeal and UK Car Discount. Simply input the model you want and the site will match you to a dealer looking to do a deal. You typically pay a deposit of around £500 to £1,000, with the balance on the day you get the car.

  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?. 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 at 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 prone to stalling at traffic lights. While automatics take some of the hassle out of driving, they come with a higher price tag. On the other hand, many automatics are more fuel-efficient than their manual counterparts, as they 'know' the best gear to be in, so you could recoup the extra cost over time.
       

    • Hybrid cars are cheap to run, but cost more to buy

      Technology is improving every day 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. See how to calculate yours on the Gov.uk website.
       

    • 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 between one and 50, using research by the Motor Insurance Repair Research Centre (Thatcham). 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. The higher the number, the bigger your premium is likely to be. To get an idea of the cost, it's also worth checking our guide on Cheap car Insurance.
       

  3. The best time to buy a 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, as they don't have targets to meet, other than the price they want to get for their car. If you're buying this way, keep an eye on prices a few months beforehand – if they're heading down, you may want to wait. Heading up, and it's prudent to buy sooner.

    All dealers work to three-monthly sales targets... Most of us try to hit target way before the end of the quarter, we did our best deals in Feb and early March and are now basically done for the quarter.
    - Forumite Saversammy

    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.

  4. 'What car do I need?' checklist

    Image of a silver saloon car.

    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.

  5. 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 putting a classified listing on Gumtree (free), PistonHeads (30-day ad is £29.99) and Auto Trader (one-week ad is free for cars under £1,000, while cars over £1,000 can be listed from £36.95). Other options include selling on eBay or Facebook.
       

    We investigated how much more you'd get selling your car privately, and a search for the value of several models on Auto Trader found the price difference was often 20% more selling privately compared with part-exchange. 

    If you do decide to part-exchange, watch for dealers inflating the trade-in 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.

  6. 'How much will it cost me?' checklist

    Before you start doing your sums you need to decide what car you want.

    You can check out every model online. Carbuyer, Honest John, Parkers and What Car? are among the best websites for research purposes – and for tons of online reviews don’t forget the Top Gear site.

    There are two sorts of costs you need to budget for: upfront and ongoing. Check you've thought about all of the following and budgeted for them:

    • Any upfront costs

      Once you've decided to buy a car, you will of course have to pay for it. You can either pay the whole cost upfront or take out a finance deal. Whichever way you choose, expect to at least have to make some kind of down payment before you drive off.
       

    • Finance repayments

      If you've taken a personal loan, or dealer finance, you'll need to factor in repayments – read more on your finance options.
       

    • Fuel

      To work out the rough cost of running a new car, use the fuel consumption search tool on the Gov.uk website. There's also a handy 'real MPG' section where drivers have reported how many miles per gallon they actually get on motoring website Honest John. See how to cut fuel costs in our Cheap petrol & diesel guide.
       

    • Tax

      For new cars, you pay an initial rate based on the vehicle's CO2 emissions the first time it’s registered. You’ll then pay vehicle tax every six or 12 months at a different rate. Check how much tax you'll need to pay on the Gov.uk website.
       

    • Car insurance

      The cost of insurance is based on how much of a risk insurers perceive you to be. For example, if you're a youngster who's just passed your test, you will pay more for your cover. Plus, taking breakdown cover will bump up the cost.

      New cars often come with a year’s worth of breakdown cover. For tips on how to cut the cost of both, see our Cheap car Insurance and Cheap breakdown cover guides. 
       

    • MOTs

      Once the car's three years old, you’ll have to pay for an MOT every year, which costs up to £54.85 (for the test). For MoneySaving tips, including using 'hidden' council test centres, which could save you £100s, see our Cheap MOTs guide.
       

    • Servicing

      You'll need to get your car serviced regularly, typically once a year, though it varies by model. Servicing ensures it’s safe to drive and keeps the manufacturer’s warranty valid. A routine service typically starts around £120.
       

    • Parking permits and tolls

      Unless you have free parking where you live, or a garage, you will probably have to pay for a resident’s permit. Check your council website to see how much this costs. Consider any costs to park at work if you drive there too, as well as toll charges you may face along the way.

      For more help with cutting the cost of parking, see our guides on How to rent out a private space and Cheap airport parking.
       

    • Other spending

      New tyres, repairs and cleaning can add up, so make sure there’s some breathing room in your budget. Allow £100 to £200 for additional spending per year, just in case.

      See how to haggle down the cost of tyres in our guide on Motoring MoneySaving.
       

    You can compare running costs of different models on sites such as Parkers and What Car?. And to cut driving costs, see our guide to Motoring MoneySaving.

    Quick questions

    • How do I get the best finance deal?

      Here are a couple of tips to make sure you get the best deal:
       

      • Haggle hard – car dealers rake in the cash from selling finance.
      • Compare rates – the lower the APR, the less interest you’ll pay.
      • Do your sums – ads may quote weekly payments, disguising a pricey deal.
      • Vitally, check the total amount repayable over the term.
      • Stand firm against pushy salesmen – there are tons of deals around.
      • Check for additional fees such as set-up or early-repayment charges.
      • Be aware some dealers will only offer finance from a small panel of lenders – you could get a better deal by sorting it yourself. See your options in our Car finance section.
         

    • What about common faults?

      The biggest complaint made about used cars is that they develop a fault soon after purchase. You can lessen the chance of that happening by doing all the right checks when viewing the car.

      It’s also worth knowing what problems a particular model might have. There are tons of online reviews on the above sites and forums that will flag any common problems that could mean costly repairs down the line. A common fault such as a broken clutch could cost around £400 to repair.
       

    • How can you get the best value?

      By the time a car is around four years old, it’s often great value as its price has most likely halved since new, even though it may have just 20,000 to 30,000 miles on the clock. So it can be worth narrowing your search to these.

      Remember that depreciation can be a shock. To work out the impact of this, and see how much a car loses value each year, use the calculator at Webuyanycar.com. The older the car gets, the less important this is. But whatever age the car, remember you’re NOT buying an asset that will increase in value, like a house.
       

    • Which cars are the safest to drive?

      All models must pass certain safety tests, with minimum requirements. The European New Car Assessment Programme (Euro NCAP) awards star ratings to cars after testing how much protection they provide passengers in the event of a crash. You can quickly search for a review by make and model on the Euro NCAP website.
       

    • Manual vs automatic – which is best?

      This choice depends on your driving preferences. Manufacturers typically offer a choice on their best-sellers, so here are some quick pros and cons:

      Manual

      More engaging drive; superior control; cheaper to buy

      Stop-starting can be tiring; could be harder to sell on

      Auto

      Smoother ride; no tedious gear shifting; may be more fuel-efficient

      Less of a driving ‘experience’; pricier to fix

  7. Check as many dealerships as possible and pit them against each other

    If you're buying a second-hand car, ask all the dealers in your area for their best deal. If you’re prepared to travel far and wide to find a rock-bottom price, expand your radius. Make a note of the best price, and ask others to beat it.

    You can always go back to your local dealer to ask if they’ll match the best offer. They might be keen for your cash, and happy to offer the same deal.

  8. Always haggle

    Haggling isn't reserved just for backstreet bazaars, it's a dealer's classic skill – and it’s expected of you, too – so bargain hard. The first rule is that you should NEVER pay the list price of the car – you'd be a fool to hand over the full cost (unless buying online, where your haggle opportunities are limited).

    Arm yourself with the cheapest web prices and make dealers compete for your custom – handily you can find a 'target price' for all brand new cars using the What Car? new car deals finder. Have this displayed on your phone, make a note of it or print it out and stick to it during negotiations.

    Haggling can be daunting, even for hardened MoneySavers, yet there's nothing to be scared of. Here are some of Martin’s top tactics (more in Haggling on the high street).

    Note: Some car dealerships and supermarkets, such as Cazoo, have a no-haggle policy, so check this out before trying your hand.

    • The beginner's haggle - get them to chuck something in for free

      Dealers often say they're not allowed to give discounts but if you're new to haggling, an easy start point is asking them to throw something in on top. Whether it's free sat-nav or floor mats, if you need an add-on, try not to pay extra for it.
       

    • Look for already-discounted cars.

      If the price is already reduced, there's often more flexibility. The boundaries have already been flexed and the psychological loss for the salesperson is reduced as they've already given up on the idea of getting full price.
       

    • Don't fill the silence

      As negotiations come to a close, a classic sales technique is staying silent. They want you to accept the price just to fill the awkward silence. Make them fill it with a cheaper offer.
       

    • Walk away – get them to call you back

      Psychologically, if they have to chase you, rather than you being super keen, is more likely to lead to a better deal.
       

    • Flaws mean discounts

      Look for the tiniest of dents or scratches. This makes them more difficult to flog, but still perfectly fine to drive.
       

    • Play them off against each other

      This is covered in the point above but worth mentioning again. To really up the haggling, don't target dealers in isolation. Try to play off a number against each other. This has two advantages – it gives you a solid foundation and it prods their competitive instincts in your favour, as they want to prove they're better than the opposition.
       

    • Be friendly, but firm

      You're more likely to get a result if the staff member empathises with you. If you're polite, charming and treat the process with humour, you'll get further.
       

    • Watch for the 'whack-a-mole' effect

      Haggle on the price of the car, and the dealer might then charge more for the finance. Haggle on the finance, and there might be no wiggle room on the price of the car. It's worth doing your sums to see how much each saving from haggling will be – and taking the most valuable.
       

    • Ask for the sun and you may just get the moon

      Remember, do it with charm, humour and style and there's no price or suggestion too outrageous. You can haggle virtually anywhere for anything.
       

    MoneySaving success stories

    Never sign on the day – walk away. You'll start getting phone calls/emails the following days with better deals… I ended up with my target trade in, £2,000 off list price and 2.9% APR on a Ford Fiesta. It was 4.9% APR but they dropped to 2.9% when I walked away.

    If you're buying privately, it never hurts to make an offer. The worst they can do is say no. And even if you walk away there and then, the seller could call you back if there's been little further interest. 

  9. Buying a used car checklist: What to look for?

    It's not just about rocking up and liking the look of the car - instead you need to look at everything, from the paintwork to the tyres, seatbelts and headlights. Make sure you follow our nine things to check:

    Check the car’s mileage. The average covered is around 10,000 miles a year, so if the odometer’s figure appears wildly out for its age, ask why. If the answer doesn’t stack up, be suspicious. Someone may have ‘clocked’ the odometer. You can also check the last service for the mileage.

    You can look out for this, as well as find out if the car's previously been written off, or 'cut-and-shut' (where parts from two cars have been welded together), with an HPI check.

    Watch out for 'Category N' (previously 'Category D') cars too. These are cars that have been in crashes previously, and while they didn't suffer any structural damage, could still have vital parts that need replacing, which is why they often cost £1,000s less than you'd expect. For the lowdown on classifications of written-off cars, see this What Car? guide.

    Overall condition. Cast a beady eye over the car’s condition, crouching down to look for scratches and dents. Checking inside is as important as checking outside – it can indicate how the car has (or hasn't been) cared for, as well as giving you an idea of if its mileage is accurate.

    Check repairs. See if there are any signs of poor repair, such as gaps between body panels after crash damage.

    Check the oil. Do this by lifting out the dipstick to see if the level's correct.

    The engine. If you're not familiar with engines, but know someone who is, ask them to come along. Look out for wear and tear, especially if the car hasn't got a particularly high mileage. Check the engine for signs of oil or water leaks, as well as the surrounding parts – and look under the car for any signs of leaks too.

    Test the radio. Plus all other gadgets to make sure they work.

    Turn on the lights. Check these work, and that you can open and close the windows easily.

    Is it safe? Vitally, does the car seem in safe condition to drive. Trust your gut – if the seats are sagging and the car looks like it’s ready for the scrap heap, continue your search elsewhere.

    What about the tyres? Check for tread and inflation.

  10. Diesel cars are more fuel efficient –  but won't be worth it for most...

    Vector image of a circular fuel gauge in black and white.

    Diesel engines are often more fuel-efficient than their petrol counterparts. But don’t be fooled into thinking this definitely makes diesel a better option.

    It's possible to pay almost whatever you want for a used car, though you tend to find that diesel cars – even used –  are slightly more expensive than petrol. But, where people think diesel is much better value is on the petrol station forecourt. And this tends to be true - even in today's environment where petrol and diesel prices are much of a muchness.

    If you're not regularly doing long journeys where the engine's most efficient, then it's unlikely you'll actually make any savings from going for a diesel model. If you just want a car for pootling around in, it's likely a small petrol or electric car will be your best bet.

    Both offer their own advantages – and remember that fuel prices fluctuate, so check these at the time of buying.

    • Diesel

      More economical – higher miles per gallon (mpg)

      Engines typically more robust – last longer

      Ideal for long journeys

      Cars cost more to buy

      Vehicle excise duty is cheaper on diesel cars

      Pricier parts if repair needed

      Commands higher resale values than equivalent petrol models

      Fuel is often more expensive in the UK

    • Petrol

      Petrol is usually cheaper than diesel in the UK

      Good for short journeys

      Engines are more responsive – this suits ‘performance’ cars

      Often less reliable than diesel cars

      Vehicle excise duty is more expensive

      Cars lose value slightly faster

      Engines less efficient and use more fuel

    So before you choose one or the other, check the real miles per gallon (MPG) values using Honest John and What Car?, which will give you a much more accurate picture than the manufacturer's 'official' MPG stats.

    IMPORTANT. Do you have or have you had a diesel car that was made between 2009 and 2020?

    If so, you could be due money back thanks to 'Dieselgate'. This is because it's claimed that carmakers used illegal 'defeat devices' in their diesel vehicles to cheat the tests done by regulators to check their emissions levels, before approving them for sale.

    Learn more in our Diesel emission claims guide.

  11. 'Test drive' checklist - the 14 things to check

    Any seller should expect that you’ll want to take the car for a spin before making a decision, so use this time wisely. Testing a car isn't just about checking if it feels right. Make sure you follow our 14 things to check.

    Is your driving position at the wheel comfortable? Can the seat slide, rise and tilt? Can you adjust the steering wheel position? Can you see all the mirrors and through the windows? Can you reach the pedals, gear stick and handbrake?

    If you’ll be fitting a child car seat, will this go in easily? Or if you need to carry large items such as golf clubs, will they fit?

    Try different routes. Include the motorway if you’ll be driving on this.

    Do an emergency stop on an empty road to double check the brakes. Try the handbrake on a hill and listen for any unusual rattling or banging sounds.

    Check that the brakes and clutch function smoothly and effectively. Plus do a three-point turn to check for play in the steering.

    Does it veer? Is the car veering to one side, or does it feel balanced?

    Bonnet, doors and boot. Are the bonnet, doors and boot easy to open?

    What's the passenger space like? Will people be comfortable on a long journey?

    Boot space. If you’re likely to be carrying heavy or bulky items, will it be easy to lift them into the boot?

    Is it smooth? Does the car pull away smoothly?

    What's the power like? Is it powerful enough to pull away from traffic lights and to keep going up hills without requiring endless gear changes?

    What’s the engine noise (or any other noise) like? Are there any irritating rattles or buzzes?

    Check the suspension. How well does it soak up bumps and take corners?

    Will it fit into your space? Have you got a dedicated parking space or is it off street parking? Is there going to be a problem fitting the car there?

    Important. Check you’re insured before doing a test drive. If you’re buying from a private seller ask them to take you for a drive if you wouldn’t be covered by insurance behind the wheel. If you have full, comprehensive car insurance already you may have third-party cover that allows you to drive another car. But always check.

  12. Buying from a dealer gives you extra protection, but costs more than buying privately

    Cut out of a yellow car under a model of a red umbrella with a black handle.

    Most car firms have an 'approved used' section, meaning they've checked the cars over before selling them. Dealers often give warranties on approved used cars, and will have made the car look and feel new, with faulty parts replaced before sale.

    You may pay more buying from a dealer than privately, but this route often gives you peace of mind about the car, and makes it easier to complain if things go wrong.

    If the car turns out to be faulty (and you didn't know about it), you should be able to get a refund, repair or replacement.

    Alternatively, if you’re willing to pay a bit more for peace of mind you could buy approved used from a car manufacturer’s franchised dealer (such as a used Ford car from a Ford dealership). This is the most expensive option, but the car’s history should’ve already been checked and it will come with a warranty.

    Warning. Be wary of any dealer that displays signs such as ‘sold as seen’ or ‘no refund’. They are sneakily trying to limit your rights, so make sure you check the conditions of sale.

    Quick questions

    • How do I find a reputable dealer?

      You can check that a dealer is listed as a member of the Retail Motor Industry Federation (RMI). It's voluntary to join, but those who do have to meet minimum membership standards. Look for an established firm and check for online reviews. Also ask family and friends for recommendations.

      Some of the biggest names in the motoring business offer used cars for sale online, such as AA Cars and RAC Cars. These only allow dealers that have met strict criteria to sell on their sites, and cars come with a history check to ensure you won’t get any nasty surprises. AA also offers free basic breakdown cover for 12 months.

      As well as advertising their cars on classified sites to reach the biggest audience, some big dealer chains and car supermarkets have their own websites. These enable you to buy a car without the bother of visiting a showroom – but be wary of ads shouting about massive discounts. You may get a better deal going privately, and doing your own groundwork.

      Motorpoint has 20 branches around Britain and no ties to a specific manufacturer. It offers similar services to a franchised dealer, including test drives and part exchanges.

      Carcraft.co.uk has 10 showrooms in England and Wales. Cars come with a seven-day exchange policy, 12 months' breakdown cover, and free servicing for a year.

      Cargiant has cheap prices and a no-haggle policy. But beware – you can’t pay by credit card so cannot use this to give you rights under Section 75 if something goes wrong.

      If you are definitely happy to go ahead and do the deal online, ensure the seller will carry out history and physical checks on cars before you pay.
       

    • What questions should I ask a dealer?

      Buying from a used car dealer might scream ‘dodgy’, but go armed with the right questions and a large dose of suspicion, and there are bargains to be had. However, trust your instincts. If you reckon a seller is desperately trying to shift a dodgy old banger, walk away.

      Questions to ask:
       

      • What’s the service history?
      • Can I see the MOT certificate?
      • What is the car’s mileage, and can you prove it’s genuine?
      • Has the car been involved in any accidents?
      • Are there any problems with the car, such as parts that aren’t working?
      • What’s included in the price?
      • What does the warranty cover?
         

  13. If you're buying from a private seller there are still ways to protect yourself

    Private sales are a case of 'let the buyer beware' (often referred to by the Latin phrase 'caveat emptor'). This means it’s your responsibility to check the car’s condition and history, and you have far fewer rights if something goes wrong than you do buying from a dealer. That said, it could be the cheapest way to buy a used car.

    The seller must give an accurate description. But it can be hard to prove if they pulled the wool over your eyes – so keep copies of the original advert. If the seller describes the car over the phone, ask for confirmation via email.

    You can find thousands of private car ads on as eBay* and Gumtree. Even if you reckon the seller is reputable, always check everything yourself.

    Safety measures

    Go to a seller’s home to see the car, not a car park or station. If the seller offers viewings anywhere other than their home, think again. This could mean they don’t want you to know where they live if there’s a problem.Take a friend or family member as another precaution, and for a useful second opinion on the purchase.

    If the asking price sounds too good to be true, it likely is, so proceed with caution – if it's below what similar models are generally going for, it could be a sign that it's a scam or the car has an underlying issue. Read the advert carefully, ask the seller why the price is what it is, use the buying a used car checklist and do a vehicle history check.

    Don't pay a penny until you've seen the car and checked it out, along with its documentation – scammers often try to persuade people to transfer money ahead of the 'viewing'. If you're asked for a deposit, don't pay more than you can afford to lose, and have the seller confirm in writing that they'll refund it if you decide against buying. 

    And DON'T carry large wads of cash – for your personal safety as well as because other payment methods provide protection if things go wrong.

    The Vehicle Safe Trading Advisory Group (VSTAG) has a buying checklist that's worth taking a look at.

    Warning. Always check the car's history. A vehicle history check, also known as a hire purchase investigation (HPI) check, will tell you if the car has outstanding finance or has previously been scrapped, stolen or written off by an insurer. It costs £15-£20 for a full check, but could save you from losses much higher if you don't check. Over half of used cars have hidden histories that could come back to haunt you, according to RAC data in 2019.

    Quick questions

    • What could go wrong?

      Unfortunately, several things could go wrong. Here are the most common:

      • Car has outstanding finance – it could be repossessed, without warning.
      • Car’s been stolen – the police could ask for the car back.
      • Mileage has been ‘clocked’ – the car has far higher mileage than stated.
      • Car has major faults – you end up with a dodgy old banger.
      • It’s massively over-priced – you’re ripped off.
         

    • Where’s the best place to check a car's history?

      Some sellers will provide a full report themselves – but in any case, you might want to do your own checks.

      You can pay for the RAC Vehicle History Check. At £15 for a full check, this is a good value all-rounder, giving you the car's history alongside common breakdown reasons, MOT failures, and average running costs for that specific make and model, plus valuation.

      Or there are plenty of other options, including the AA Vehicle Check (£15) and HPI Check (£20).

      All reports from these sites come with a guarantee of up to £30,000. So if any critical information is missed, you’ll be reimbursed for any financial loss up to that amount.

      Be sure to check that the company you use takes responsibility for the accuracy of the information it provides.
       

    • Should I do any other checks?

      There are several others worth doing to give as much information as possible on the car you’re buying, and provide valuable peace of mind.

      Make a note of the registration and V5C reference numbers and check the car’s MOT status and details from 2005 using the Gov.uk website. This will tell you the mileage readings at tests (so you can compare with what's displayed on the car's odometer), dates of previous MOTs, and any faults found.

      Check that the colour, registration, registration date, engine number (usually on a metal plate on the body of the engine) and engine size match the V5C (log book) using the Driver and Vehicle Licensing Agency (DVLA) website.

      It’s also worth checking the vehicle identification number (VIN, usually stamped on the chassis in the engine bay or on a door frame) to see if this matches the paperwork too.
       

    • What should I check in the documents?

      Here's a checklist:
       

      • The number of owners.

      • Mileage and dates of service.

      • Receipts for the services, matching these against stamps in the book. It’s vital to check service history, or you risk massive repair bills.

      • Pay close attention to the V5C vehicle registration document before the sale. This shows who is the registered keeper of the car – NEVER buy without one (and look out for the DVLA watermark genuine V5Cs have throughout). Check the details match the vehicle’s records using the DVLA enquiry service.

      • Check that the MOT certificate is valid and see if there is any trouble that may need fixing at the next one, such as old tyres.
         

  14. Car purchases are NOT protected on eBay

    It might sound risky, but one of the most popular places to buy used cars is eBay*.

    But if you pay using PayPal its purchase protection does NOT apply to cars – and neither does eBay’s own buyer protection. So if anything goes wrong, you cannot turn to either to sort it out.

    • Other things to bear in mind if buying a car on eBay

      If you still want to go ahead, you should visit and test-drive the car and go through the usual procedures of buying privately, rather than just bid in an auction sight-unseen. See the tips for buying privately and go through the same process, and take care.
       

      • Don’t buy a car having never used eBay before. You need to familiarise yourself with the how the site works, and feel comfortable with this.

      • Don’t search too far away from home – you MUST see the car. Most auctions last days, but give yourself plenty of time to view the car.

      • Set your maximum price and stick to this. It’s tempting to up this to seal the deal, but don’t let the excitement break your resolve.

      • Meet the seller in a safe place – ideally their home – and take a family member or friend if possible.

      • Perform all history checks for buying privately. See how in Private buying safety measures.

      • Ask where they bought the car, why they’re selling, and any other questions that may help you feel comfortable about the sale.

      • Check the car’s value on Glass’s Guide, Parkers and What Car? to find out if the price is about right. Be suspicious if it’s listed at a bargain basement price.

      • Remember to factor in the cost of insurance, registration, taxes and other running costs.

      • Check out your seller. Check the seller’s feedback rating to see if it’s positive and ask questions about the car’s condition before placing a bid. Do they seem upfront and honest?

      • Sellers must be easily contactable – ask if you can give them a call to double check before meeting them in person.
         

  15. Pay something toward the car on a credit card (if you can) – it'll give you protection

    Pay even a penny toward your car on a credit card, and you get powerful extra protection if something goes wrong down the line. This is because you're then covered by Section 75.

    Provided the total cost of the car you're buying is between £100 and £30,000, paying anything towards it by credit card means the card company (or finance company, in some cases) is equally liable along with the dealer if things go wrong.

    However, this isn't straightforward. Some dealers don't accept credit cards, others may only allow you to pay a limited amount by card. So figure out how important this is, and ask your chosen dealer if it can accept credit cards before deciding how to pay.

    Here’s a Section 75 deposit-only success story to give you some inspiration...

    I ordered and paid £15,991 in full for a new car, but before I took delivery, the trader went into liquidation. Thankfully I had paid the first £100 deposit on my Barclaycard credit card. So I made a Section 75 claim. It took six months, but this week I received a credit to my card of the whole amount, just from having paid the first £100 on my card.

    If you opt for finance from the dealer, Section 75 will usually apply. Hire purchase deals are the exception.

    So, if you're choosing a personal loan or savings to pay for your car, and not the dealer's finance, it's worth using a card to pay at least something. It just gives you that little extra peace of mind if something does go wrong.

    Quick question

    • What if I’m buying the car from a private seller?

      You probably can’t pay by card. In this case, you will likely pay by cheque, PayPal or online banking. The seller will want to wait for payment to clear before letting you take the car.

      However you pay, ask for a signed and dated receipt. This should include your name and the seller’s name, along with details of the car, the price, and the address where you bought it.
       

  16. Make sure any extras you buy are needed – and worth it

    The dealer will probably try to sell you the premium version of whatever model you've selected. This may include models they have on the forecourt with Bluetooth, cruise control, parking sensors, sat-nav and so on. All these will bump up the cost, but do you NEED them? And if so, can you get them cheaper elsewhere?

    For example, Google Maps (avaiable for Android and iOS devices) and Navmii (also available for Android and iOS devices) are both free apps which turn a smartphone or tablet into a sat-nav, with Global Positioning System (GPS) navigation, offline maps, real-time traffic updates, voice-guided navigation and more.

    Then check what the dealer's 'throwing in'. This is usually anything from service plans to extended warranties and sometimes even insurance. But, always check these are actually free. As we mentioned previously, benchmark a price for the make and model you're after at several used car dealerships – if the price is substantially above this, then it's likely you're paying for the extras in the price of the car itself.

    But don't discount their worth completely. Warranties can save you £300-£500 a year compared with buying them separately, especially on used cars – car insurance is often this much a year too. It's worth comparing how much you'd pay for a version of that car without all the mod-cons and then making an informed choice from there.

    Quick question

    • Do you need an extended warranty?

      The dealer will try to flog you an extended warranty as part of their sales patter, but these can be pricey. You can always buy one when the manufacturer’s warranty expires on a price comparison site. Be aware that there’s endless choice and some aren't any good, so check the clauses for any exclusions. A good policy will cover parts, labour AND consequential loss.

  17. You need car insurance in place before you take ownership of the car

    Close-up photo of a car key and a blue toy car on the keyboard of a laptop.

    Make sure you sort out your car insurance before you take ownership of the car. Just like when you buy a property, you must have insurance in place as soon as you've become the legal owner – even if you're not driving it just yet.

    This is because if anything happens to it, it's your responsibility. You might be taking extra care of your brand new car, but what if you get to the first roundabout on the drive home and someone drives into the back of you?

    It's also illegal to drive on public roads without insurance. So make sure it’s insured before you pick up the car. And also make sure your policy is valid on your new vehicle if you're transferring car insurance.

    If buying from a dealer, you can ask if the car comes with any insurance. You may be covered for a week (dealers often include this), but if not you’ll need to arrange insurance before driving the car away. So always check before you pick up your car.

    To find the best deals, see our Cheap car insurance guide and use our revolutionary Compare+ car insurance tool.

    What about tax?

    Any remaining tax on the car isn’t transferable between owners, so you’ll need to get the car taxed as soon as you take ownership, which you can do online using the Gov.uk website.

    However, try to buy at the start of the month – if you buy on, say, 25 May, you'll need to pay the full tax premium for May, even though you haven't owned the car for most of the month.

  18. 'Paperwork & spares' checklist - the seven things to check

    When you buy a used car you’ll be given a bunch of documents, so check you’ve got the right ones before paying up.

    Logbook, or V5C. This is issued by the DVLA as proof that you're the keeper of the vehicle. It should list you as the registered keeper, though you may not be the owner if you bought on finance. Ensure it's genuine by looking for the DVLA watermark running through it.

    Servicing booklet. Check that you've got this as it will list when the car was last serviced, as well as what's been repaired/replaced.

    Manuals. Make sure you've got these. As cars get more and more technical, it's good to have manuals as a backup.

    Spares. If you were expecting a spare wheel, check it’s there along with the tools needed to change it.

    Keys. Make sure you get at least one spare, as replacements are expensive.

    Sales contract. Make sure you get a dated sales contract showing that you've completed the deal and paid the right money. Check your name and address, plus the full details of the car, the agreed price, and any payments already made.

    Finance package. If you’re opting for finance, make sure you understand any jargon in the fine print before you sign.

  19. If you're buying a new car some manufacturers offer warranties lasting up to seven years

    You'd hope that nothing is likely to go wrong with a new car – but what if it does? Your car will come with a warranty from the manufacturer. The majority offer a stingy three years' worth of cover, while a few are up to seven years, or dependent on the number of miles driven.

    This is actually a decent add-on to have, and it could save you £1,000s if there are problems. But, as manufacturer provided warranties tend to run out just as mechanical problems start to kick in, it might not be the most useful.

    Some dealers offer longer warranties (five years or more), and if this is important to you, you could stick to car manufacturers offering this. 

    Quick questions

    • How do I extend the warranty?

      If yours runs out after three years, it can be an expensive business to extend. Standalone warranty providers will charge upwards of £300 a year to extend the warranty of a three-year-old car.

      Some dealers will try to flog you an extended warranty as part of their sales patter, but these can be pricey. You can always buy one when the manufacturer's warranty expires on a price comparison site.

      Be aware that there's endless choice and not all are any good, so check the clauses for any exclusions. A good policy will cover parts, labour AND consequential loss.
       

    • What should the warranty cover?

      Warranties should cover most mechanical and electrical faults, but typically won't cover wear and tear to tyres and brake pads. Most problems that might occur with a new car should be covered, which is why it can be valuable to have a decent warranty attached to the sale.
       

    • Are service packages ever worth it?

      A lot of new cars come with a fixed service plan, so you pay an upfront fee that covers the first three to five years of services. These can be a brilliant way to fix your costs, but check this against what it would cost outside of a package before paying up. Call a few garages as well as the franchised dealership to give you an idea.
       

  20. If you're buying a new car, mind the gap – it might not be worth it

    Warning: Gap insurance sales paused – PLEASE READ. In February, the Financial Conduct Authority (FCA) told insurers to pause selling gap insurance due to concerns the product is "failing to provide fair value to some consumers".

    As a consequence, we've left this point here so the information is still available, but you can no longer buy cover via     our Gap insurance guide. For more details, see the FCA website.

    Guaranteed asset protection insurance – more commonly known as gap insurance – can cover the difference between the amount you paid for your car (or owe on your car if you have finance), and the amount an insurance company would give you if it was written off or stolen.

    Gap insurance is one of those potentially useful types of policies that don't have a very good reputation. Like payment protection insurance (PPI), it's been pushed hard onto unsuspecting consumers for years, and it's now something that many are very wary of.

    One of the problems with it has been solved. Since 2015, dealers have no longer been allowed to sell gap insurance to you at the same time as your finance deal, so you don't have to sit through the hard sell. But should you get gap insurance anyway?

    In itself, it's not a bad product, and can be useful. There are three main types of gap insurance, but they all have the same general aim. For more information, see our Gap insurance guide.

    Quick questions

    • How does gap insurance work?

      If you have a crash, or your car's stolen, your insurer will usually only pay out the amount the car is worth at that time.

      Gap insurance is a policy you can buy that pays out an amount above this, either to get you back to the original sale price of the car,  the amount you have outstanding on finance (which can, at times, be greater than the car's worth), or the amount it would cost to buy the car new now.

      It's offered because cars depreciate really quickly. Auto Trader says a new car loses up to 50% of its value in the first three years.

      So, imagine you drive your shiny new Ford Focus off the forecourt. You paid £28,000 for it, and took £25,000 of finance from the dealer to pay for it. But, if you crashed it a few weeks later, because it's no longer new, your insurance might only pay out £20,000 – what the car's worth now – yet you still owe £25,000 on finance.

    • Is gap insurance worth it?

      Not always. Most fully comprehensive car insurance policies will offer 'new car replacement' during the first 12 months of ownership anyway, so you may just end up paying for something you've already got. Check your car insurance policy first.

      It may be worth it if you risk owing more than the car is worth. This could be the case if you've bought on finance. So if the car is written off or stolen, you could be left without a car and owing £1,000s in outstanding payments.

      Alternatively, if you're concerned you wouldn't be able to afford a replacement car if it's written off or stolen, gap insurance could provide peace of mind.

      The cost's typically between £100 and £300 for three years' worth of cover (as with any insurance, you can pay it monthly or as a one-off sum), depending on your car make and model, and the type of 'gap' you opt for.

      Buy from an online broker, not a car dealer. You'll get it for a fraction of the price. And remember to check the excess (the amount that comes out of your pocket if you claim) and the policy type and details before signing up.

      For the cheapest way to buy, see our Gap insurance guide.

  21. Buying a new car? Don't assume you'll be able to drive off on the same day

    You're unlikely to be able to drive a new car away on the day, even if you haggled the price down by going for one of the showroom models. The dealer will want time to prepare it for sale, such as fitting optional extras and getting paperwork together. But if you need your new wheels immediately, stipulate it as a point of the sale.

    If you don't need the car right away, ask for a time and date to pick it up and check a day or two before that it'll definitely be ready.

    If you chose a new car built to spec, a wait of several weeks isn't unusual because it may be built overseas and need to be shipped to the UK. Make sure anything you agree to with the dealer is in writing to avoid any problems later on.

    On delivery, check the car's what you wanted, including any extras. If you find something you're not happy with, avoid taking delivery of the car. If you have taken delivery and find something you're not happy with later on, the more speedily you raise problems, the more chance there is of the dealer taking it back and you getting a replacement or full refund.

  22. Know your rights

    Second-hand cars are one of the most complained about issues, with Citizens Advice and Trading Standards receiving 10,000s of complaints a year. These are often about a fault, but sometimes the problems are so bad the car needs to be scrapped.

    If the car had a blindingly obvious flaw when you bought it, you wouldn't expect it to be the car of your dreams. But if you paid a fair price, and the car goes kaput once you get home, you usually have rights – even if it's a new problem...

    • If you bought from a dealer

      If you bought the car from a dealer you're covered by the Consumer Rights Act – for full help, see our Consumer rights guide.

      The car must be SAD FART – of satisfactory quality, as described, fit for purpose and last a reasonable length of time. The dealer has broken their contract with you if the car doesn’t meet these criteria.

      What are you entitled to?

      If the car turns out to be faulty (and the fault wasn’t obvious, like an engine problem or worn out clutch), you should be able to get a repair, replacement or refund if these don’t work.

      If the dealer say they pointed out the fault, did they tell you the full extent of the problem? Say you were told the clutch is stiff but it’s worn through, then they should sort it out.

      Important – if you return the car within six months, it's up to the dealer to prove it wasn't faulty when you bought it. After this, it's up to you to prove the car was faulty at that time.

      You may be entitled to a full refund if the fault is serious, and picked up quickly after the sale and you’ve stopped using the car. If you’ve had the car for some time ask for a partial refund.

      What if you bought using finance?

      If you bought the car on finance or paid the deposit on a credit card from the dealer, and you fail get a resolution your complaint within eight weeks of making it to the dealer or finance company, you can take it to the Financial Ombudsman Service (FOS).

      Alternatively, if you bought with cash or a loan from the bank, find out if the dealer belongs to a trade association and go through its ‘alternative dispute resolution’ process. For more info, go to Citizens Advice website.
       

    • If you bought privately

      If you’ve bought a second-hand car from a private seller, your rights are nowhere near as strong. Essentially, the car is sold ‘as seen’. The car doesn’t have to be of satisfactory quality OR fit for purpose, which leaves you on wobbly ground if there’s a problem. It’s really a case of ‘buyer beware’.

      Say the seller says nothing about an engine problem and you buy it, then that's it. Even if the car shudders to a halt a week later, you weren't mis-sold, so have no comeback. Though if they lie to you – you do.

      The seller mustn’t lie about the car’s condition or history, such as failing to mention an outstanding major and expensive service issue or a past accident when asked, or giving a false mileage. This is why it’s vital to ask the right questions, check the right things and take steps to protect yourself.

      If you discover you've been misled, you should be able to return the car and get a refund. You’ll have to prove that the seller did know about the problem though, and that could be difficult.
       

    • If you bought at auction

      Here you have few rights, as the useful parts of the Consumer Rights Act might not apply. Auction houses can exclude these, and cars are usually labelled clearly ‘as seen’ with no claims as to the condition of the vehicle, so check the T&Cs of sale before buying. Some car auctioneers belong to the National Association of Motor Auctions (NAMA), which has a code of practice.

      If you bought online, you have additional rights under the consumer contracts regulations, which means you have a 14-day cooling off period to change your mind once you’ve got the car. For more info, see our Consumer rights guide.
       

    What if you get nowhere?

    If your complaint falls on deaf ears, there are other steps you can take to fight back. To see how to take legal action for claims of up to £10,000, check out our Small claims court guide.

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