Used cars: Getting a good deal

Pointers for finding a good second-hand car

For starters, don't rush into a decision. Shop around. There's plenty of places to buy - car yards, auction sites, car fairs, private sales. However, no matter where you choose to buy, it's crucial to do your homework and check the history of the car.

Buying a car from a second-hand car yard

Do you need to sell your car before buying another? Then arranging a trade-in with a reputable car dealer may be the easiest option. Things to note:

• You may pay a little more when buying from a motor dealer
• Second-hand cars purchased from a dealer come with a guarantee
• A pre-purchase check should still be done. Points from this report may be negotiated into the purchase price

Buying a second-hand car privately

Here's where to look for second-hand cars for sale:

• Websites such as TradeMe, NZ Herald and Auto Trader
• Local and main newspapers
• Locally held car fairs / park and sell yards

When buying privately, you should pay less than you would from a car dealer. Remember:

• There is no warranty or comeback on a private sale
• Get a pre-purchase inspection done, so you know what you're buying
• Never buy a vehicle without a Warrant of Fitness
• The warrant should be less than a month old
• It's the purchaser's responsibility to organise change of ownership details and pay the fee

Buying a second-hand car via auction

The advantage of buying at auction is in the price. Cars bought at auction are cheaper than from car traders. But these cars don't come with guarantees. Here are a few pointers to get you through the auction process:

• Attend a viewing day prior to the auction to look over vehicles
• If a car has potential, get a pre-purchase inspection done
• When bidding, keep a cap on your maximum buying price
• Don't pay more than you would for the same model at a dealer's yard
• If you have not been to a vehicle auction before, attend one to experience the bidding process

Buying a second-hand car at car fairs and park & sell yards

Most of these second-hand cars will be sold on behalf of private sellers. So follow the same procedures as if you were buying a vehicle privately. Things to consider:

• Pre-purchase vehicle inspections are usually available on-site at car fairs. If a car has potential, have it independently inspected
• Fair and yard operators must be registered as motor vehicle traders if they are selling more than six vehicles per year, and must comply with regulations
• This means that if you have problems with the vehicle you have bought, you may have legal recourse.
• If you are dealing directly with the seller of the vehicle and the fair or yard operator is not involved in the sale, you may not have legal protection

Check out the vehicles history

Regardless of where you buy a used car from we recommend you check out it's history before you buy. You'll save yourself time and money - and make the car buying experience is stress-free.

Most of the information mentioned here is available from an AA Vehicle History Report.

Is there finance owing?

Many people finance a vehicle purchase through a loan. As a buyer, you need to be sure there is absolutely no money owning on the car BEFORE you hand over your money.

Is the person selling the car the registered owner?

It may sound silly, but it's an important point. You don't want to hand over money to the wrong person. Check whether the person offering the car for sale is actually the legal owner.

How many miles/kilometres has the car travelled?

Knowing the distance the vehicle has travelled is a good indicator of its likely condition, especially if you can see the mileage travelled over six monthly periods.

How many owners?

Has the vehicle been owned by one careful lady driver or several not so careful people?

VIN (Vehicle Identification Number)?

Like the serial number on a TV or microwave, the VIN will be stamped on the vehicle in the engine area. The VIN is a better form of identification than a number plate which can change. Knowing and checking the VIN allows you to check whether the actual car is the same vehicle mentioned on documents like WoF certificates and registration documents.

Registration date?

This will tell you when the registration fee is due.