| The path to buying a reasonable used car is | | | | have to pay. Of course, loan firms will try |
| littered with buyers who didn't follow simple | | | | to get the highest rate for their products |
| and straightforward advice and ended up with | | | | that they can, so as well as shopping around |
| some absolute lemons. There are pitfalls that | | | | for your car, you should also shop around for |
| are easy to avoid once you know about them, | | | | your car finance. Also remember that the |
| and there are also lots of other things that | | | | longer the term of the loan the more you will |
| you need to do before parting with your cash | | | | be paying in interest, make sure you can |
| for a second hand motor. | | | | comfortably afford the monthly payments and |
| | | | have money spare to maintain and run your |
| The first thing to do is your research! | | | | vehicle. |
| | | | |
| Find out the average selling price of the | | | | Caveat Emptor - Buyer beware! |
| vehicle you are after. Bear in mind that | | | | |
| condition and mileage can affect the value of | | | | There's an old legal saying that has its |
| the vehicle, as can its involvement in an | | | | basis in Latin when it comes to buying goods |
| accident. So do ask "Has this car been in an | | | | - caveat emptor; it means "buyer beware" and |
| accident? Is it a reconstructed car?" These | | | | the advice still applies today, especially if |
| are very important questions as the | | | | you are going ahead with a sale from a |
| performance, reliability, safety and value of | | | | private individual and not through a garage. |
| cars can be affected by either of these. | | | | Most reputable second hand car dealers offer |
| | | | warranties and guarantees when you buy a used |
| How to finance your car | | | | vehicle from them, so if something goes wrong |
| | | | you can go back to the garage. Dealer prices |
| Very few of us are in a position to be able | | | | tend to be higher to incorporate those |
| to pay cash to buy the car of our dreams, so | | | | guarantees as well as their profit margin. |
| what other alternatives are there? The most | | | | However, if you buy from a private individual |
| common method of buying a used vehicle is by | | | | you have limited protection. But, there are a |
| taking out a car loan. The crucial thing to | | | | lot of bargains out there and the best thing |
| consider when you take out a car loan is how | | | | before you buy from a private individual is |
| much interest you will pay. Basically, the | | | | to take along a mechanic who can give the car |
| higher the APR (Annual Percentage Rate) the | | | | a once-over and put your mind at rest on its |
| more you will pay in interest. The percentage | | | | mechanical reliability. |
| APR that you will pay tends to be tied very | | | | |
| closely to your credit score; i.e. the higher | | | | Hopefully, you will avoid buying a lemon if |
| your credit rating the lower the APR you will | | | | you follow our top tips on buying a used car! |