Black Horse Finance

Now you should be getting a clearer idea of what you can afford and the kind of car that can best suit your needs and circumstances.

Do you use your car to commute every day? Is it mainly for the school run, shopping and leisure time at the weekend? Will you be cruising solo most of the time, or are you the ‘family taxi service’? The answer to these questions will affect your choice of car.

Then there are your personal preferences for size, colour, make, fuel type, transmission – which will also influence your final decision. And to make sure you end up with a decent car for your money, we’ll give you some pointers for your all-important test drive and help you make simple but informative inspection checks – even prepare effectively for a part-exchange deal.

There are several decisions to make – this page takes you through some of the things to think about:

·        Brand new or quality used?

·        Large or small – does size matter

·        Petrol, diesel, LPG or hybrid?

·        What a test drive can tell you

·        Bargain or banger? Inspecting a used car

·        Preparing for part-exchange

Brand new or quality used?

The choice between new and used is very much an individual preference.

Do you want a flashy new car to impress your friends and neighbours? Does the latest registration plate mean a lot to you? Or do you baulk at paying for a new car when you know it will depreciate in value as soon as you drive it away from the showroom?

Depreciation can be the single biggest ‘cost’ in running a car. Foregoing the latest model and buying a one year-old version can save you thousands – the biggest drop in a car’s market value occurs in the first 12 months.

If you’re buying new, then you’ll be buying through a dealership. Buying used means you can also buy privately. While private sales can offer good deals price-wise, you don’t get the warranties and guarantees you would from a dealer. The good news is that Black Horse can provide an independent warranty for used cars bought through its network of dealers.

Large or small – does size matter?

The trend in the UK until recently was ‘bigger is better’, with many car buyers opting for larger ‘4X4’ or SUV-type vehicles. This trend has started to reverse, partly due to greater awareness of the harmful effect of CO2 emissions on the environment. People are also keen to reduce their fuel budgets.

Here’s our quick guide to car sizes:  

City cars – ideal for frequent commuters, but they can wear out quickly. So if you’re considering a used city car, it’s usually best to go for newer models, even if the price is bit higher.

Family cars – roomy and versatile, so perfect if you have children. They are usually well-priced, and ex-company cars with low mileage are worth considering.

Small hatchbacks – almost every car manufacturer has a small hatchback model, so there’s no shortage of options on performance, fuel economy, versatility, comfort, and so on.

Sports cars – new and quality used sports cars generally cost more than a family hatchback. But then price is usually less of a consideration than the looks and the performance if this is what you’re looking for.

Luxury cars – for those with a little more to spend, there’s the chance to travel in style. But when buying new, bear in mind that luxury cars lose their value very quickly, so a used model could make more financial sense. Running and repair costs are generally high, either way.

4x4s – not so much the fashionable choice these days, but a robust, reassuring and versatile drive nonetheless. Larger 4x4s tend to offer greater value for money, but are likely to use more fuel and aren’t as easy to park!

Petrol or diesel, LPG or hybrid?

What’s the best fuel for you? Are you looking for performance, low emission, the best miles per gallon, or a combination of all these things? Let’s have a quick look at your options:

Petrol – historically, petrol models have dominated the market and can offer higher performance. And because they’re more common, they can be cheaper to maintain and repair.  

Diesel –  diesel engines have become increasingly popular thanks to improved engine technology, better performance and fuel economy. Once a cheaper option, new diesel models can be more expensive due to increasing demand. Repairs can also be more expensive and older models can be sluggish to drive.  

Liquified Petroleum Gas (LPG) – many manufacturers offer LPG on new models, and converting a used petrol or diesel is relatively straightforward. Overall, LPG works out around a third cheaper than petrol or diesel – once you've driven enough miles to recoup the extra outlay for the production model or a conversion from petrol or diesel. So it’s worth considering if your annual mileage is quite high.  

LPG engines perform well compared to the current generation of diesels and petrol engines in terms of performance and reliability. But remember, LPG–fuelled cars aren’t permitted through the Eurotunnel!  

Hybrid – several car manufacturers offer ‘hybrid’ cars, powered by a small petrol or diesel engine and an electric motor. The car runs one or both motors, depending on how much power you need, and the petrol or diesel engine keeps the electric motor charged.  

Emissions-wise, hybrids are cleaner than petrol or diesel cars. Running costs should be cheaper, too, as the whole point is that they use less fossil fuel. But hybrid cars are more expensive to buy new, yet can be more difficult to sell on – potential buyers are often wary of this relatively new technology.  

What a test drive can tell you

Never agree to buy a car without first spending some time behind the wheel. Here’s how you can get the most from your test drive:  

If you’re trying a wide range of cars, try to do it all in the same day – it’ll be easier to make comparisons.

Once you’ve more or less chosen a car, ask for an extended test drive to make sure. It’s part of the process, so don’t be shy. Wherever possible, make sure you drive in a range of environments – built up areas, country lanes and motorways.

Make sure you can easily get in and out of the car, and sit comfortably.

If it’s a family car – take the family with you to the test drive.

With used cars, make sure the engine is cold before you start. And keep an ear out for any unusual sounds, like knocking or hissing.

The steering should be responsive and not vibrate. The brakes should stop the car without pulling the steering to the left or right.

In a manual car, check you can get in and out of all the gears smoothly, and watch out for signs of a worn clutch – one that doesn’t ‘bite’ until the pedal has nearly reached the top – they can be costly to replace.  

Don’t forget to ensure that you have insurance to cover test-driving a new or used car. 

Bargain or banger? Inspecting a used car.

If you’re buying a used car, make sure you check it out thoroughly. These simple checks can tell you a lot about a car’s condition:  

Check the condition of the tyres, including tread depth and sidewall damage. If a tyre has uneven wear, the wheels may need re-balancing, and a good dealer will arrange this as part of the price tag.

The steering wheel should turn easily without any unusual noises or vibrations.

The gears should engage without any grinding. A weak or over-stiff clutch pedal could be a sign of worn components.

The engine should idle constantly, at just under 1,000rpm.

Check the oil dipstick and the inside of the oil filler cap. If you find a brown sludge, don’t buy the car.

Check the exhaust doesn’t produce lots of blue smoke when you rev the engine. If it does, the engine is most likely damaged.

Check the bodywork and underside of the car for excessive rust.

Look for signs of flaking paint and rust under the bonnet, as this suggests repairs following a crash.

Check the interior wear and tear on a used car appears to match the mileage. If it doesn’t, ask about its history.

Open and close all the doors to make sure they function correctly, and check rubber seals for damage. This can suggest crash damage or repairs.

Look down the side of the car to see if all the panels and bodywork line up smoothly. Be suspicious of wavy panels, or cars with uneven gaps between panels.

Check all items work correctly, including electric components, such as wipers, lights, electric windows, stereo, alarm system, and so on. 

Preparing for part-exchange

If you’re looking to part-exchange on a used car, make sure you cover all the points above to ensure you’re getting the best deal. Also, have the paperwork ready:

• V5C registration document
• MOT certificate
• Service history