The ten golden rules for buying a car

When it comes to buying a car, even the most sensible and organised people can go into a complete panic. They make stupid decisions and ignore their instincts because they are suddenly put under pressure in an uncomfortable environment. The complete guide to getting a great deal on buying a car would fill a whole book. But since you’re probably here looking for immediate answers and advice on buying your next car, here are The Car Expert’s Ten Golden Rules for buying a new or used car. There’s nothing in here that is complicated or difficult, and we will show you how anyone can get a great deal on a car. You don’t have to know anything about cars or car finance; you just have to trust your own judgment and ask questions whenever you don’t understand something. Follow our golden rules and you are far more likely to end up with a decent car – and get a decent deal on it, too. The ten golden rules for buying a car Don’t sign anything unless you are 100% committed to buying the car Never give a car dealer money unless you’re 100% committed to buying the car Read and understand everything before you sign anything Car dealers can only take advantage of you if you let them A car dealer will try to sell you the car THEY want you to buy, not the car YOU want Understand your total financial commitments – now and over time Always test drive the same car you are planning to buy Get everything in writing There’s always another car No car is perfect, and any car can go wrong at any time Rule 1. Don’t sign anything unless you are 100% committed to buying the car. Signing a form indicates you are committing to what that form says. In a car showroom, signing a form generally means you’re agreeing to buy a car – and it’s usually a legally-binding commitment. You don’t need to sign anything for a quote, whether it’s a price for the car or a quotation on car finance. Any dealer telling you that you need to sign something “to hold the price until you make up your mind” is lying. You don’t need to do that. You are probably signing a contract to buy a car. You may have to sign a test drive form to make sure you are covered for insurance purposes, but you don’t have to sign a vehicle order. If a dealer won’t let you test drive a car without signing an order “subject to a satisfactory test drive” beforehand, walk away. If you’re not 100% sure that this car is the one you want, or whether your significant other will like it, or if you haven’t got an insurance quote yet, or if you’re not sure it will fit in the garage, or for any other reason at all, don’t sign the form. Do your homework first and make sure you have all your ducks lined up in a row before committing yourself. Don’t be pressured into signing anything (see Rule 4 and Rule 9) by anyone. Only sign when you are good and ready. Once you sign a contract to buy a car in a car showroom, you have legally committed yourself to it and you can be held to it. Changing your mind after you sign on the dotted line is much harder than beforehand, and usually much more expensive. I bought a car and have changed my mind – what happens now? Next page: Before you reach for your wallet... Rule 2. Never give a car dealer money unless you’re 100% committed to buying the car. Giving a car dealer a deposit is basically the same as signing an order form – you are saying “I agree to buy this car”. Again, you don’t need to pay a deposit for a test drive, a quote or anything else. It’s common sense, and no different from any other retail store – if you are paying money for it, you’ve bought it. You should only need to pay a deposit on a car once you have signed an order form (contract) to purchase it. Handing over money without a contract will usually end in tears. If you have to pay a dealer over the phone to secure a car, get an email confirmation immediately and a proper receipt in the post that day (see Rule 8). Whenever you give a car dealer any money, make sure you get a proper receipt (again, see Rule 8). Make sure the receipt specifically states what the payment is for (eg – “deposit for purchase of Ford Fiesta, reg. AB21 CDE”). If you end up paying a different amount to what is shown on the contract (it can happen, for a number of reasons), get the contract re-written to match what you have actually paid. No exceptions. Cancelling my car order – is my deposit refundable? Next page: The fine print is unbelievably important Rule 3. Read and understand everything before you sign anything. As explained in Rule 1, signing a contract legally commits you to everything it states. Yet a large number of car buyers do not read the sales contracts or finance agreements before signing. Or they don’t understand exactly what something means, but sign anyway because they’re too embarrassed to ask. All contracts have terms and conditions, which may have implications for your ownership of the car, and you are legally bound to them once you sign the contract. If you are not sure what you are getting yourself into, don’t sign. Ask questions – as many as you like. If you don’t understand the answer, ask again. Ask someone else to explain it. If you’re not happy with the answers, walk away and get some answers elsewhere, even if you just need reassurance that you’re not being stupid. It’s not uncommon for the purchase contract for a car to look different to the quotation you were given, or from what was originally advertised. Compare them closely, and if there’s anything that doesn’t match, ask why. It may be an error, or the dealer may be trying to sneak something past you without you noticing. Is the finance rate still the same as originally quoted, or has it mysteriously increased? Most British car buyers bewildered by car finance jargon Next page: Who’s in charge here? Rule 4. Car dealers can only take advantage of you if you let them. You may have heard of the original ‘Golden Rule’ – whoever who has the gold makes the rules. It is amazing how many people forget this as soon as they walk into a car showroom, and immediately capitulate to everything the car salesman wants them to do. The car sales process is cleverly designed to extract the maximum amount of money from your wallet as possible. You are led along a very specific path, ultimately arriving at the destination of buying the car that suits the dealer best (see Rule 5), using their finance and with as many extras attached as they can fit into your stretched budget. But they can only do all this if you let them. Turn the tables. Make them prove that their car is better by comparing it to others. Make them work harder to get your business by shopping around for a better deal. Be polite and reasonable, but don’t be afraid to tell them if they are not doing a good enough job at earning your money. Walk away and find a dealer who will treat you and your wallet with more respect. If they don’t listen to what you are asking for, don’t accept it. Make them show you a car which meets all of your needs, not the one that they really want to sell but doesn’t really suit you. If they don’t have a suitable car, go elsewhere. Basically, don’t take any crap and don’t give them your money unless they have genuinely earned it. They’re all paid on a commission basis, so you are personally paying them to sell you a car. Why does buying a car have to be so unfriendly? Next page: Don’t get distracted by their tactics Rule 5. A car dealer will try to sell you the car THEY want you to buy, not the car YOU want. Car companies usually have a large range of models, each with several different engine, gearbox and trim choices, plus a huge range of colours and options. There can be literally millions of potential combinations for any particular type of car. That means the chances of a dealership having the exact specification you want, available and in stock, are usually fairly low. Instead, dealers will stock a selection of cars, usually in the most popular colours, with more available “from our secure storage facility” (a field somewhere) or in stock at other dealerships, or of course you can order one directly from the factory to your exact preferences and simply wait for it to arrive. However, the dealer doesn’t want you to order a car, or make them bring one in from elsewhere. They want you to buy the car right there in front of you, because that car is costing them money every day it sits there. A car that they don’t have doesn’t cost them anything, so it’s in their interest to convince you to take that car right there, however they can. Whether it’s sweetening the deal on their showroom car, or scaring you off ordering a car with long waiting periods and a reduced part-exchange price, or any other method, they will always try and sell you the car they have now, regardless of whether it’s what you want. Next page: That all sounds fine... but is it really? Rule 6. Understand your total financial commitments – now and over time. If you read through the various questions asked in any of the car finance articles, you’ll find countless people trying to find out how they can get out of their financial obligations. It might be because their circumstances have changed, or they have changed their minds, or they have a new job in a different country, or so on. Usually it’s problems affording the payments, and usually it can be traced back to a lack of thought or understanding of the long-term financial commitment of taking out car finance over four or five years. Plus buyers tend to forget that cars cost money to run – a recent study found that the average is £160/month, and that doesn’t include finance payments. Just because you can afford the deposit and monthly payments to buy your ideal car right now, doesn’t mean you can comfortably keep up payments over 36-60 months. This is especially true if you are borrowing the maximum you can afford, leaving yourself nothing to spare if your life expenses start to increase. If you fail to keep up your payments, the finance company...

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