Once you have finished celebrating (and admiring your pass certificate), you will probably begin your search for your first car.
Remember you do not need to buy a car straight away. Many people choose to wait whilst they save up first. There is also the option of car financing which I’ll talk about later.
Some people have their heart set on a particular model of car. Whilst there is nothing wrong with this, remember this may mean waiting a bit longer until one is available. However, if you are happy with any model or have a wider selection in mind, you can begin your search.
The best thing to do first of all is to decide how much money you are prepared to spend. You may already have a sum of money saved up and if you are very lucky your family may also make a small contribution. Ideally, you should have a set budget and stick to it.
Next you will need to decide if you are going to purchase from a car dealer or a private seller. There are advantages and disadvantages of both so you should consider all of these before making your decision.
Car Dealer Advantages
- You will have greater consumer rights if something goes wrong with the car further down.
- A car dealer is likely to have inspected the car, carried out any repairs and thoroughly cleaned the car beforehand.
- Most dealers will offer an after-sales service such as repairs, MOT etc.
Car Dealer Disadvantages
- Higher cost.
- Not as easy to haggle (although not impossible).
Private Seller Advantages
- Easier to haggle for a better price. As they are a private seller they may be in a hurry to sell their car so they are likely to be willing to negotiate.
- Cheaper prices.
- A private seller may know more about the car’s history especially if they are the previous owner.
Private Seller Disadvantages
- You will need to ensure you thoroughly inspect the car before purchasing it.
- No access to any after-sales service.
- No option for car financing.
- Fewer consumer rights. The car only needs to be as described and roadworthy.
Do your research
Car History
Ask about any previous repair work or modifications, anything that is not working as it should and about the previous owners. You can get some information about a car on the DVSA website including tax status, MOT history and date of registration.
Check the car over
You should be sure to check the car over thoroughly inside and out. Check for any dents, scratches or marks that have not (or cannot) be repaired and make note of any modifications.
Test Drive
Regardless of where you buy the car, you should always take the car for a test drive. Car dealers will typically allow you to this (some even encourage it) although you will be accompanied by a member of staff.
Pricing
How to haggle for a discount
- Do not reveal the absolute maximum amount you are prepared to pay.
- If you are in a hurry to buy a car, do not let the sales advisor know this. If they think you are desperate to buy a car they will not offer a good discount.
- Try to stick to the same sales advisor and build a rapport with them. Remember they will receive a commission so they want a deal just as much as you.
- Do not be fooled by offers of free gifts alongside your car. Some dealers may offer to throw in free car mats, a full tank of petrol or some other car accessories to seal the deal.
- Be prepared to walk away if you cannot agree a price.
Financing
Some people will have saved up money for their first car. However, there is the option of car financing as well if you do not have a set sum of money available upfront.
There are three main types of car financing available:
Hire Purchase
A type of loan that is secured against the car and you will not own it until you have made the final payment. You will need to make an initial deposit and then pay the rest in fixed instalments over a set period of time. Hire Purchase agreements are quick and simple to set up as they are usually offered by the car dealer themselves.
Personal Contract Purchase (PCP)
PCP is pretty common however is quite complex. You will need to pay a (non-returnable) deposit before borrowing the remainder of the money and paying monthly instalments to cover the rest of the loan (plus interest). At the end of the fixed period of time, you can either return the car, buy it or trade it in for a new car under PCP.
Personal Leasing
This is almost like renting a car for a fixed period of time, usually between 2 – 5 years. You will pay a deposit upfront and a monthly payment for a brand new car. However, there are restrictions including a limited number of miles, not being able to modify the car without permission and you must return the car in the same condition in which you leased it i.e no scratches or damage. At the end of the time period you cannot buy the car although you can take out a new lease on a new car if you wish.
