Used car transactions have risen 4 per cent in the first half of the year and second-hand vehicle prices in general continue to rise.
Demand for pre-owned motors was up 9 per cent in August compared to the same month a year earlier – and average prices are also 1.1 per cent higher, according to latest Auto Trader data.
It says used cars are selling faster than last year and are at pre-Covid levels, adding that average prices remain around £2,000 higher than they would have been if the pandemic hadn’t happened.
The five costliest mistakes you need to avoid when buying a used car have been revealed in a report by online vehicle sales platform, Motors
With drivers having to fork out more money on a second-hand car as well as securing sales quicker to beat the competition, it can be easy for buyers to neglect doing all their due diligence before purchasing.
But a new report from used car sales platform Motors has highlighted a handful major mistakes all buyers need to avoid. And if they don’t, the combined cost of all five errors could ring in at over £25,000.
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How to save on car insurance: Ten top tips to cut the cost in just a few minutes
1. Failing to check a car’s MOT and service history
Potential cost: £327.85
Once you’ve found a car advertised for sale that takes your fancy, before rushing in to make an offer, it’s crucial you make the necessary checks on a used car prior to handing over any cash.
Whether you’re looking online or in person, once you know the vehicle registration number, a quick search online using the Government’s vehicle enquiry service will tell you all you need to know about the vehicle’s MOT status.
Here, you can how often it has passed – or failed – an MOT, and the reasons why it might have flunked the annual roadworthiness test.
READ MORE: Used car buyers beware! These are the most commonly clocked ‘nearly new’ brands as sellers hide true mileage
A list of advisories will also be listed, so you can check if these items have been rectified before the car was listed for sale.
It’s also worth conducting a history check.
These come at a cost – usually around £30 for a comprehensive check, which will identify if the car has previously been written off, has outstanding finance or might have been ‘clocked’ – the term for when an owner has adjusted the mileage so it shows less than the vehicle has covered in an attempt to falsify its true value.
If you don’t make this check and buy a car with an expired MOT you will set yourself back £54.85 before even turning on the engine, plus the average cost of repairs for a failed MOT, of £273, Motors says.
Buying a clocked car could also see you overpaying by 25 per cent – according to a recent report by CarVertical – and could see drivers stung with extra maintenance costs associated with higher-mileage vehicles.
Victims who do inadvertently buy a clocked car have very few rights to seek justice and compensation.
That’s because the act itself of clocking a car’s odometer is not technically an offence.
Instead, it’s only a criminal action if a clocked car is sold on the used market without its genuine mileage being declared.
With the expansion of ULEZ in London as of 29 August – and the arrival of similar clean air zones in other cities across the UK – car buyers need to make sure they are purchasing second-hand models that are compliant with the zone rules in which they are often driving
2. Overlooking the expansion of ULEZ zones and other Clean Air Zones across the UK
Potential cost: £4,562.50
A select number of second hand cars have skyrocketed in price due to the recent Ultra Low Emission Zone (ULEZ) expansion that now covers all London boroughs.
In contrast, models that are not compliant with the zone’s rules – and are charged £12.50 a day to use – have dropped in value like a stone.
READ MORE: A fifth of drivers living in cities with clean air zones like ULEZ are forced to sell their cars – here’s how much owning a non-compliant car could cost local motorists
Those living in London who mistakenly buy a used car that isn’t ULEZ compliant can will be charged up to £4,562.50 per year if they drive every day.
And it’s not just London impacted.
Motorists in Birmingham with non-compliant older petrol and diesel cars face daily charges of £8 to enter its Clean Air Zone (CAZ) – that’s £2,920 per year if driving in the zone daily.
It’s a similar case for Bristol’s CAZ, where £9 daily charges for older diesel cars can amount to £3,285 across a full year.
Another example is Oxford’s Zero Emission Zone, with £2 to £10 daily charge depending on vehicle emissions, which works out at up to £3,650 a year if driving in the zone every day.
That said, the Oxford ZEZ is currently extremely small and covers just seven streets – but is expected to be expanded soon.
And for drivers living north of the border, making the mistake of failing to own a newer model could be even more dire.
Glasgow’s Low Emission Zone (LEZ) launched earlier this year sees non-compliant cars banned from the city centre entirely – and entry result in a Penalty Charge Notice of £60 (reduced by 50 per cent if paid within two weeks) for non-compliant cars. PCN amount doubles with each breach to a maximum penalty of £480.
In theory, this means drivers can incur annual PCN’s up to a value of £174,180, according to a calculation by car selling website carwow when enforcement of the zone began back in June.
The LEZ scheme is also due to be introduced in Aberdeen, Dundee and Edinburgh from next year, meaning drivers living in those cities need to steer clear of non-compliant used motors.
Photos can be deceiving and often don’t tell the full story. That’s why you must see a car in the metal before committing to buy
You don’t have to be a mechanic to check if a used motor is running smoothly. Go for a test drive to check the biting point of the clutch, there are no loud knocking noises from the engine under acceleration and try an emergency stop to ensure the brakes work as they should
3. Failing to carry out a thorough inspection of the car
Potential cost: £273
Seeing a car in person is a must before buying to ensure the vehicle is in a condition as described in the advert and shown in pictures.
Some signs of wear and tear are expected but checking the tyres, gearbox and engine is advised to ensure they are in decent condition, so they don’t turn into an issue that a buyer may end up wanting to repair down the line.
Check the mileage matches the age and condition of the car and take it out for a test drive and really get a feel for it.
When behind the wheel give it a rigorous test – drive up a steep hill and test the biting point of the clutch, check there are no issues or loud knocking noises from the engine under acceleration and try an emergency stop to ensure the brakes work as they should.
The average UK driver spends £273 a year on general upkeep of their vehicle and if you don’t make the necessary checks you could be covering the bill for the repairs on your new car.
Budgeting for any car is not simply about the cost of the vehicle but also the price of running it throughout the year with insurance, tax, servicing, fuel bills and more
4. Failing to budget for insurance and running costs
Potential cost: £2,093
It can be easy to get carried away when car shopping, which is why it’s important to work out how much money you can actually afford to spend on a vehicle.
Your budget should not only include the price of the car itself but also the many associated costs to run it.
This includes car tax – which for models registered after 1 April 2017 the standard rate of vehicle excise duty (VED) has risen to £180 from this year – and the price of insurance, which on average is £478.
Then you also need to factor in fuel bills, on average £1,435 for the year – though with prices expected to rise as oil prices look set to go up, the cost of petrol and diesel at the pumps will almost certainly increase in the coming weeks.
Quotes for car insurance can be found online and you can find out a vehicle’s fuel consumption too, so you can get a rough estimate of how much the total outlay for the vehicle will be, Motors says.
Car buyers who purchase a stolen car are often left empty handed once the authorities identify the vehicle has been pinched. It’s vital you buy from reputable dealers and don’t fall for scams
5. Unwittingly buying a stolen car
Potential cost: £17,815
READ MORE: Vehicle thefts jump by a quarter as criminals use three hi-tech tactics to pinch cars – do you know what they are and how to evade them?
If the price looks too good to be true – it is likely to be a scam. That’s why car buyers need to keep their wits about them when searching for a second-hand motor.
Consider the age, mileage and condition of the car and from your previous research you should be able to get a sense whether the price seems considerably under market value.
Of course, there are good deals to be had but if you do see a car that is suspiciously cheap, make sure to ask the necessary questions to get an understanding as to the reason why.
Buying from a reputable dealer does eliminate many of these risks, as they put cars through detailed inspections and usually provide warranty, so you are covered for future repairs.
But if you are buying from a private seller then make sure to do a stolen car check online, as if you are unfortunate enough to have bought a stolen car – you are not entitled to the money you paid for it and it will be confiscated.
With the average price of a used car currently £17,815, according to Motors, this will be the most expensive mistake to make of all.
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