Are you in the market for a used car? With many new cars depreciating at an average of 40% in their first year alone (this is something that varies and the best cars may only lose as little as 10%)[1]. This rapid initial depreciation of new cars can sometimes be good news for used car buyers, as it means you can find relatively new cars at substantially reduced prices. However, not all cars depreciate at the same rate.
Different makes and models lose value at varying speeds, influenced by factors such as mileage, service history, reliability, warranty length, fuel economy, and even the car’s color. Popular, reliable models with good fuel economy and low mileage tend to hold their value better, making them smart choices for the savvy buyer. For today’s motorist, understanding depreciation can lead to significant savings. Webuyanycar have produced a great handy guide to help people understand how depreciation works.
It is also important to consider what trends are happening in the market. For example, research shows that 2024 has seen a 8.9% fall in used car prices [4], which is good news for those looking to purchase a new car.
Motorists may still wish to remain pragmatic, however, as prices are still considerably higher than what they were pre-pandemic due to the shortage of new cars. You’ll find more information on this in our guide to buying a second-hand car.
Now we have a good idea of what’s going on in the market, it’s time to look at some of the methods which tend to remain consistent when looking to get a good deal on a used car. This includes doing your research, choosing a reliable seller, checking it’s MOT and service history, and doing an online valuation of the car. Buying a used car is not something you want to rush into, after all, it’s a big investment and you want something that is going to last. The seven tips below will help you get a great price on a used car, whether you buy it privately, at auction, or from a used car dealer.
1. Before you buy, research how long the car has been on the market
Just like you have more room to negotiate on a property when it has been listed for a long period, you’ll be able to negotiate more effectively on cars that have been for sale for a long time.
Sellers often list cars for sale at optimistic valuations, expecting to get an offer immediately. As the weeks and months go by, their optimism fades and their goals change from getting the highest price to simply ensuring the car is sold.
As a buyer, this is a major advantage for you. Before you make an offer on a vehicle, check how long it has been on the market. The longer it has been listed, the more likely that the seller will be interested in a lower-than-normal offer.
2. Choose a reliable, trustworthy seller to avoid post-sale problems
Used car shopping can be an experience to look forward to that offers a variety of affordable options. However, ensuring that you have found a reliable and reputable seller to buy from is crucial.
If you have your eye on a car, and are ready to buy make sure that you are doing your research on who you are buying from. Look at for things such as reviews and ratings, testimonials from past customers, making sure to pay attention to any recuring positive and negative feedback from customers.
Another thing you can look for is the warranty options that they have available. Ideally, when purchasing your used car you will be able to add an extended warranty on as an addition. If your seller does not offer warranty, then you can always add one at a later date, you can take a look at our car warranty plan levels here and make sure that you have that peace of mind and added financial protection.
You will take the most risk when buying a car if you buy it at auction or privately. To reduce the risk of post-sale problems, the most sensible option is to buy your car from a well-known dealer.
3. Private used car sales may offer the lowest prices
Buying from a private seller can be a more affordable way to buy a used car as some private sellers may have more flexibility on their asking price. Often that they are selling their vehicle for personal reasons, such as upgrading vehicle, or not needing one anymore.
It is important to be aware however, that there can be some risk when buying privately. Most are honest but be aware of scams and hidden faults with the car. You can find out how well the car has been maintained by asking for service records and MOT history, as well as conducting a thorough inspection with a mechanic or mobile inspection service [2].
If you find the same car listed with a dealership, it is worth looking at the price and weighing up the benefits of buying privately or through a dealership. Dealerships can be more expensive, but you will benefit from some protection in terms of quality assurance and consumer rights – with this in mind, it may be worth checking online as often cars can be listed cheaper online and you may get a better deal!
4. Look for dents, chips, scratches and other points to negotiate on
Negotiation is both an art and a science. While it’s often easy to bring a seller down to the market price by showing them similar listings, it can be difficult to bring the price of a used car below the market price without some extra negotiation room.
To reduce the price of a used car as much as possible, look over the bodywork for scratches, dents and other imperfections, mention them to the seller and ask for a discount – if they’re obvious faults, you’ll likely get one.
As well as cosmetic damage, it’s also worth looking for defects in the vehicle’s engine, transmission, chassis, suspension, electronics, and other components. All defects, no matter how small, can be used as powerful negotiating tools.
5. Interested in a car? Check its MOT status and history online
Few experiences are as frustrating as finding what seems like a fantastic car and spending a significant amount of money to buy it, then realising its riddled with issues that weren’t obvious at first sight.
Luckily, this situation is easy to prevent. By searching for a vehicle’s MOT history online, you can usually spot problems and defects that could affect its reliability, then decide whether it’s worth buying.
To find a vehicle’s MOT history, you’ll need its registration number, as well as either its MOT text number or V5C registration certificate reference number. Using both, you can search for its MOT history from 2005 onwards.
6. The importance of reliability
Reliability is a crucial factor to consider while choosing a new vehicle and is one that should be thought of alongside other aspects such as budget, quality, and desired features.
A car is a big investment, and looking at the reliability of a car you’d like to purchase may save you a lot of money and hassle. Reliable cars will typically have lower maintenance and repair costs, and by choosing a reliable vehicle, you can save significant money on unexpected repairs and breakdowns. In addition to this there is the safety aspect – reliability often correlates with safety and a car that is less likely to break down unexpectedly, is also less likely to leave you in dangerous situations. [3]
Research is important when assessing a car’s reliability, and the Warrantywise Reliabilty Index serves as a valuable tool to guide your search for the right vehicle. The Reliability Index provides comprehensive data on various car models, including their reliability scores, average repair costs, and most expensive repair requests.
7. Not sure how much a car is worth? Check valuations online
Do you know how much a certain car is worth? With so many different makes and models available, it can be tough to know how much a certain car, from one model year to the next, is worth on the used market.
Before you make an offer on any used car, check its value to make sure that you’re not overpaying. Websites like Parkers and WhatCar? have valuation information for a wide range of used cars, from popular models to niche sports cars.
Once you know how much a car is worth, you’ll find it easier to negotiate and get a good deal. If you’re determined to get the best possible price, you can even print the valuation information to show to the seller while you negotiate the sales price.
With these six strategies, you will be ready to tackle the used car market and hopefully secure a great deal. Remember, buying a used car doesn’t have to be a daunting experience and with the right amount of research, reliable sellers, and vehicle inspections you can find a high-quality used car that fit both your needs and budget.
Don’t leave your investment unprotected, give yourself that extra peace of mind and added financial protection with an extended car warranty – get your car warranty quote today.
References:
[1] The AA. (n.d.). Survey reveals 40% depreciation in the first year [Blog post]. The AA. https://www.theaa.com/car-buying/depreciation#:~:text=A%20new%20car%20loses%20value,lose%20as%20little%20as%2010%25.&text=If%20you%20do%2010%2C000%20miles,end%20of%20its%20third%20year.
[2] Auto Express. (n.d.). Buying a car privately: Advice and tips. Retrieved from https://www.autoexpress.co.uk/car-news/96595/buying-a-car-privately-advice-and-tips
[3] Motor Trade News. (n.d.). Why reliability matters when choosing a car. Retrieved from https://www.motortradenews.com/industry-articles/why-reliability-matters-when-choosing-a-car/
[4] Manheim by Cox Automotive Manheim. (n.d.). Used vehicle value index. Retrieved July 16, 2024, from https://site.manheim.com/en/services/consulting/used-vehicle-value-index.html