The Complete Car Buying Guide

Everything you need to know about buying your next vehicle with confidence

Step 1: Planning Your Purchase

Define Your Needs

Before starting your search, consider these essential questions:

  • Primary Use: Daily commuting, family trips, business, or leisure?
  • Passenger Capacity: How many people will you regularly transport?
  • Cargo Space: Do you need room for sports equipment, luggage, or work tools?
  • Driving Conditions: City traffic, motorways, rural roads, or off-road?
  • Parking Constraints: Garage size, street parking, or workplace limitations?
Set Your Budget

Consider all costs, not just the purchase price:

  • Purchase price or monthly payments
  • Insurance premiums
  • Road tax
  • Fuel costs
  • MOT and servicing
  • Repairs and maintenance
  • Depreciation
  • Parking fees
  • Breakdown cover
  • Accessories and modifications
Budget Rule: Your total monthly car costs should not exceed 20% of your monthly income.

Step 2: Research & Compare

New vs Used Cars
New Cars - Pros:
  • Latest technology and safety features
  • Full manufacturer warranty
  • No previous wear or damage
  • Customisable specifications
  • Better financing rates
Cons:
  • Higher purchase price
  • Immediate depreciation (20-30% first year)
  • Higher insurance costs
  • Longer waiting times for delivery
Used Cars - Pros:
  • Lower purchase price
  • Slower depreciation
  • Lower insurance premiums
  • Immediate availability
  • More car for your money
Cons:
  • Unknown history potential
  • Higher maintenance costs
  • Limited or no warranty
  • Older technology
Essential Research Tools
  • Vehicle Reviews: Read professional and owner reviews
  • Reliability Ratings: Check Which?, JD Power, and manufacturer ratings
  • Running Costs: Use our calculator to estimate total ownership costs
  • Safety Ratings: Review Euro NCAP safety scores
  • Market Values: Compare prices across multiple platforms

Step 3: Finding Your Perfect Vehicle

Where to Look
Dealerships
  • Warranty protection
  • Part-exchange options
  • Finance packages
  • Professional sales process
Private Sellers
  • Lower prices
  • Room for negotiation
  • Direct owner history
  • Quicker transactions
Online Platforms
  • Widest selection
  • Easy comparison
  • Detailed filters
  • Price alerts
Red Flags to Avoid
  • Unusually low prices (potential scam or hidden problems)
  • Reluctance to allow inspection or test drive
  • Missing or incomplete documentation
  • Pressure to buy immediately
  • Request for payment before viewing
  • Inconsistent vehicle history
  • Signs of accident damage or poor repairs

Step 4: Vehicle Inspection Checklist

Exterior Inspection
  • Check panel alignment and gaps
  • Look for rust, especially wheel arches and sills
  • Inspect paint consistency and overspray
  • Check all glass for chips or cracks
  • Verify tyre condition and tread depth (minimum 1.6mm)
  • Test all lights and indicators
  • Check for oil leaks underneath
  • Inspect exhaust for excessive smoke
  • Verify VIN matches documents
  • Check spare wheel and tools
Interior Inspection
  • Check seat adjustment and condition
  • Test all electrical features
  • Verify air conditioning works
  • Check dashboard warning lights
  • Test infotainment system
  • Inspect carpets for dampness
  • Check boot space and lining
  • Test central locking
  • Verify mileage seems genuine
  • Check for unusual odours
Under the Bonnet
  • Check oil level and colour (should be amber, not black)
  • Inspect coolant level and colour
  • Look for corrosion on battery terminals
  • Check brake fluid level
  • Inspect belts for wear
  • Look for any obvious leaks or damage

Step 5: The Test Drive

Before You Drive
  • Ensure you're insured to drive the vehicle
  • Check your driving licence is valid
  • Plan a route including various road types
  • Allow at least 30 minutes for the test
What to Test
Engine & Performance
  • Cold start behaviour
  • Acceleration response
  • Engine noise at different speeds
  • Gear changes (smooth/notchy)
  • Clutch bite point (manual)
Handling & Comfort
  • Steering response and alignment
  • Brake effectiveness
  • Suspension over bumps
  • Wind and road noise
  • Visibility and blind spots
Tip: Turn off the radio during the test drive to better hear any unusual noises.

Step 6: Essential Documentation

Documents to Check
  • V5C Registration Document: Confirms legal ownership
  • MOT Certificate: Valid test certificate (cars over 3 years)
  • Service History: Full record of maintenance
  • Previous MOTs: Check online for history and advisories
  • Insurance Write-off Check: HPI or similar check
  • Finance Check: Ensure no outstanding finance
  • Warranty Documents: Any remaining manufacturer warranty
  • Owner's Manual: Important for maintenance schedules
Vehicle History Checks

Always perform these checks before purchasing:

  • HPI Check: Outstanding finance, insurance write-offs, stolen vehicle check
  • MOT History: Free online check showing all tests, failures, and advisories
  • DVLA Tax Check: Verify current tax status
  • Mileage Verification: Check consistency across MOT records

Step 7: Negotiation Tips

Preparation is Key
  • Research the market value thoroughly
  • Note any issues found during inspection
  • Calculate upcoming maintenance costs
  • Check prices of similar vehicles
  • Decide your maximum price beforehand
Negotiation Strategies
  • Start Low: Offer 10-15% below asking price
  • Justify Your Offer: Use research and inspection findings
  • Bundle Deals: Include warranties, services, or accessories
  • Walk Away Power: Be prepared to leave if the price isn't right
  • Cash Advantage: Immediate payment can strengthen your position
Remember: The best deal is one where both parties feel satisfied.

Step 8: Payment & Transfer

Safe Payment Methods
  • Bank Transfer: Safest for large amounts, creates paper trail
  • Banker's Draft: Secure but verify authenticity
  • Escrow Service: Third-party protection for both parties
  • Cash: Only for smaller amounts, count together, get receipt
  • Finance: Through dealership or bank, compare APR rates
Completing the Sale
  1. Complete V5C/2 new keeper supplement
  2. Ensure seller completes V5C/3 section
  3. Get a detailed receipt with:
    • Date and time of sale
    • Vehicle details (reg, VIN, mileage)
    • Price paid
    • Both parties' details
    • "Sold as seen" statement
  4. Arrange insurance before driving away
  5. Check road tax status (not transferred automatically)

After Purchase Checklist

Immediate Actions
  • Update insurance with new vehicle details
  • Tax the vehicle if needed (can do online)
  • Update V5C address if moving
  • Register with manufacturer for recalls
  • Book first service if due soon
First Month Recommendations
  • Familiarise yourself with all controls and features
  • Read the owner's manual thoroughly
  • Check and adjust tyre pressures
  • Top up screen wash and check other fluids
  • Consider GAP insurance for new cars
  • Join breakdown cover service
  • Install security devices if needed
Quick Links
Search Vehicles Finance Calculator Insurance Guide
Buying Checklist
Golden Rule

Never buy a car without seeing it in person, test driving it, and verifying all documentation.