Buy with your head, not your heart.

A brief guide to buying a new car and how to avoid the pitfalls

By Tariq Musaji DSA Master ADI

A car is the second most important purchase after buying your own home

You need to set yourself a realistic budget

Will it be a cash purchase ? Or a finance deal?

Match the vehicle to your personal needs

Do your research. Visit websites and read reviews from actual owners

Motoring journals reviews tends to be biased, especially if the manufacturer is advertising heavily in their magazine

Which? Consumer watchdog are unbiased and produce reports for their subscribers.

If paying by cash, never pay the book price of the vehicle.

Negotiate with the salesperson

Don’t be afraid of knocking £2 - £3K off the list price

Go for a test drive, not round the block

A good test drive should cover a wide variety of roads

Petrol or Diesel engine?

Diesel engine is only good if you are going to drivemore than 10, 000 miles per year

There are now plenty of frugal engines whichgive good fuel economy

Manufacturers fuel economy figures are misleading

These are done in test laboratory conditions

Sorting out the deal –

If buying on finance, make sure that you understand the truecost of borrowing, this is known as the APR (Annual percentage rate)

Never sign the agreement on the same day, take it home with you.

If you don’t understand it, ask for help or clarification

Think about the long term, if you in the future lose your employment orbecome ill ………..

Could you still afford the repayment?

Do you have any other income in place?

Ask for any insurance which protects you from illness or unemployment

Or ask an Independent Financial Advisor.

Take someone else with you, when viewing the vehicle

Preferably someone who has a good knowledge of cars

Shop around and take your time in making a decision

If you do agree to a sale……make sure that it is in writing

Agree everything in writing. Salespeople sometimes have a habit of forgettingessential items that had been agreed.

Always pay your deposit using a Credit card. This gives you financial protection