Advice on buying and selling in the second hand market
With the thrust of this guide about advice on buying new cars, it’s only proper that we sign off with a few comments on buying and selling in the second hand market.
Ok lets get the bad news out of the way first. Your trade-in is probably worth an awful lot less than you think, with a few exceptions.
Dealers only want to take in a second hand car at a price that suits them, no matter what you think your second hand car is worth.
Now that we have acquainted ourselves with the blunt and brutal reality, let us deal with it as a business proposition because, with a bit of work, it doesn’t have to be all that bad.
Firstly, cars lose value, every day and for a whole variety of reasons in the normal course of events. These include wear and tear, scratches on the bodywork, mileage, dated design, reputation and so on. The continuing recession, a lack of credit and low confidence levels all have to be factored in to the over all equation.
If you are trading in a car with a large petrol engine, be ready for a big shock. The dealer won’t want to take it and if he does, he’ll probably offer “silly money”.
With such models it might be worth advertising the car in the local paper in the hope of attracting a private buyer.
And if a dealer takes in your large petrol engined car against a newer second hand or a new car you will find the cost of change has rocketed.
Assuming you are thinking or planning on changing to a new model, what are you going to do? We’ll skip over the obvious such as making sure it is clean, polished and in top mechanical order.
The first thing is to ask yourself which of the following makes more sense. I won’t bother changing the car this year and take the financial consequences of an even larger cost of change next year. Alternatively, I’ll change now, take the pain and hope things pick up so that when I come to trade-in again my car will not have lost too much value and the cost of change gap will not have widened.
Let’s assume you decide to change.
Ask yourself if you want much the same sort of car or something bigger or smaller? Petrol or diesel? Each element has a major cost factor.
Are you prepared to shop around and compare prices on a decent scale? If you are, you have our guarantee that you will save a lot of money. We mean a lot of money.
For example, some dealers may have so many other cars like yours they will offer you peanuts for it – if they can muster the courage to even do that.
But others may not be nearly as over-supplied with that particular model and may hold out a faintly stronger hope of finding a mark for it. That could put an extra €500 in your pocket – maybe €1,000, maybe even more.
You won’t know until you start asking questions.
There are undoubtedly bargains. Extraordinary bargains. And if you do not have a trade-in, then you are king, prince and lord all rolled into one. No garage in the country will let a cash customer out without cutting their price to the marrow, not just the bone.
Many dealers lost a lot of money on cars they gave big prices for a year or so ago. But they have to try to shift them somehow or another. If you are enterprising enough, you can also capitalise.
There are other areas where you can play it smart. Dare we mention a petrol engine? Say you don’t go for a diesel. Then you can really bargain hard for something with (let’s say) a 1.8-litre or 2-litre petrol engine. Why? Because not many want them. Yet if you get one at low money and are prepared to take bottom dollar when you come to trade up in a few years’ time, there is an immediate, and substantial, saving to be made. Admittedly that’s relatively short term but you can also console yourself with the thought that you would be a long time saving €4,000, for example, on diesel.
However, whatever you do, try to buy a car with a decent reputation. For the past couple of years here we have cited the mantra: The day you buy is the day you sell. It was never, ever, more applicable.
Whatever chance you have of getting reasonable money for a well-regarded marque/ model you haven’t a hope in hell for those whom the trade always discounted for unreliability and/or poor build quality.
Let’s call a spade a spade: some models will stand up to scrutiny in these dreadful times much better than cars that have been discounted by their own distributors just to shift them.
Please do ask a mechanic you trust or someone who knows the scene. Buying a good car now may cost you a bit more but it will lose value less quickly and changing next time might not be as painful.
Finally do not be subsumed in the quagmire of gloom. If you can maintain your normal period of change, the overall cost – while possibly severe this time – will level out over a period of time. Of course it is perfectly understandable if your priorities lie elsewhere but it is worth doing your sums.
Remember, secondhand cars are not going to get dearer for the foreseeable future. Therefore trade-in values are not going to increase in value. It is a tough time to be coming to this juncture. There is no easy way to do it. If you have to / want to / decide to change, it is going to be painful.
But you can reduce impact by playing a bit clever, doing your shop around, and buying a car with a good reputation.
There may be no easy way to say it, but so long as you ensure you do the best deal you possibly can, then at least the stress and trauma is out of the way for a good while.
And, who knows, by the time you come to change again, we might be into better times?
Take care and good luck.
Buying your first car
Buying your first car, especially if the first car is a used car, can be a daunting experience. Below is a guide to make the process easier.
First of all decide how much you can afford to pay for your first car. Not just the sum to buy the car itself but also the running costs – car insurance, NCT, road tax, petrol, repairs and servicing.
Now with a model and price in mind you’re ready to shop. So what are the options when it comes to buying a first car?
Franchised Dealer
Usually has better quality used cars but at higher prices. Good after sales services and assistance. Buying from a franchised dealer gives you maximum legal protection. Of course dodgy franchised dealers exist so look for an established company with a good reputation.
Independent Dealer
Often a wide variety of potential first cars at lower prices, with variable used car quality and after sales service.
Auction
Potential to pick up a first car bargain. Car quality can be inconsistent however, and some dodgy cars can be bought. There is also little chance of financial comeback if the used car develops any serious faults. To get the best out of a car auction it is best to go with someone who knows about cars. Always carefully inspect any car you are interested in before you bid on it.
Privately
Lots of used cars to choose from and low prices. However, with no after sales service you could get ripped off.
If you buy your first car privately you have fewer legal rights. The car must be ‘as described’ but the other rules don’t apply i.e. there is no legal requirement that the car is of satisfactory quality, although the car must be roadworthy and safe to drive if it is being sold to be driven on the road.
The ‘as described’ covers all statements made about the car, in writing, in a conversation over the phone or in the showroom, in a newspaper, website, email or text, or in documentation.
Negotiate
Never pay the ticket price. Always negotiate. If the seller won’t drop the price then walk away, leave them your phone number with the instruction to give you a call if they change their mind and drop the price. Also don’t be afraid to ask for a free or extended warranty, even a full tank of petrol.
Used Car Inspection
To help you decide whether a used car is worth buying take a look at this printable checklist. If you find yourself answering ‘Yes’ to a lot of questions in one or more sections then think hard about buying the car. The checklist not only assesses the used car’s condition but also the likelihood of it being a stolen or clocked car. General points to look out for:
Bodywork – look for rust, as this is always a bad sign. Look all over the car, checking the wheel arches and as much of the underbelly of the car as you. If you can’t get a proper look underneath the car use your hand to feel underneath. If you see small amounts of rust on the bodywork, this may indicate more serious rusting below the surface.
The engine – open up the bonnet and inspect the engine. Does it look well-maintained or dirty or neglected in any way. Pull the dipstick out and check the oil. If the oil looks black this may indicate that the oil hasn’t been changed regularly, and that the car hasn’t been serviced at regular intervals. The oil should be look fairly transparent.
Check to see that all reservoirs, brake, coolant etc are adequately filled. If they aren’t, then this will indicate the car has been neglected.
With the engine on, make sure the engine doesn’t rattle or make any other strange noise.
Tyres – check the tyres including the spare. Are they legal? Replacing tyres is costly, so the deeper the tread, the longer the tyres will last. Check the tyres for cracks and bulges. If you find any, the car is unlikely to be legal to drive.
Leaks – Check underneath the car for signs of leaking fluids, such as oil or brake fluid. If the owner has parked the car off their driveway, check the drive way for stains.
Study The Service History
Ask the seller to provide you with a copy of the service history manual and the user manual. Look at the service history to see how often the car has been serviced. The manual will tell you the service schedule. Each service entry should be stamped with the mechanics stamp and dated. Look to see if any other work has been carried out on the car. A good service history will also have receipts for work carried out. If the seller can’t provide any service history information then assume the car has been poorly looked after.
It is vital to look in the manual and check when key engine part changes are recommended to take place. For example many cars need their camshaft changing at around 75,000 miles. Such repairs can be expensive. If the camshaft broke before being changed you would be looking at a hefty bill. So check how many miles the car has done and what replacements are due.
Test Drive
When you do, make sure you’re insured to drive the car you’re about to test drive! Always start the engine from cold. If the engine has already been warmed up you won’t get to see if there are any cold-start or cold-running problems.
As you start the engine, listen for any knocks or rattles. If you hear any, be carefully, they are usually signs that something is wrong. Watch that no grey smoke comes out of the exhaust, as this is sign of a worn engine.
During the test drive listen to the engine. If it sounds too noisy there could be a problem, likewise the exhaust.
Test the suspension by driving over some bumps. If the car fails to correct the resulting bounces quickly, or if you hear rattles or knocks, then the shock absorbers may need replacing. Also:
- Turn on the radio and all other electrical gadgets. Make sure they work.
- Changing gears should be smooth and easy. If not then the gearbox may soon need replacing.
- Perform an emergency stop and test the brakes. If you hear any strange noises, especially a grinding noise the brakes may be wearing thin.
You can boost the overall fuel-efficiency of your car as much as 30 per cent by simple vehicle maintenance and attention to your style of driving.
Here are some tips on fuel-efficient driving that reduce greenhouse gas emissions and other pollutants save you hundreds of euro a year in fuel costs.
Fast starts and hard braking can increase fuel consumption by as much as 40 per cent.
Tests show that fast starts and hard braking reduces travel time by only four per cent, while toxic emissions are more than five times higher.
The proper way is to accelerate slowly and smoothly, then get into high gear as quickly as possible. In city driving, nearly 50 per cent of the energy needed to power your car goes to acceleration.
Drive steadily at posted speed limits
Increasing your cruising speed from 55mph (90km/h) to 75mph (120km/h) can raise fuel consumption as much as 20 per cent.
You can improve your mileage by 10 – 15 per cent simply by driving at 55mph rather than 65mph (104km/h).
Avoid idling your vehicle, in both summer and winter. Idling wastes fuel, gets you nowhere and produces unnecessary greenhouse gases.
If you’re going to be stopped for more than 30 seconds, except in traffic, turn off the engine. In winter, don’t idle a cold engine for more than 30 seconds before driving away. Older vehicles, however, may need more idling time when first started. In cold, winter conditions all vehicles may need more idling time to warm up and ensure the windshield is fully defogged. Be sure your vehicle is warmed enough to prevent stalling when you pull out.
Make sure your tyres are properly inflated to prevent increased rolling resistance.
Under-inflated tyres can cause fuel consumption to increase by as much as six per cent.
Check tyre pressure at least once a month, when the tyres are cold, that is: when the vehicle has not been driven for at least three hours or for more than 2km. Start by checking tyre pressures in your driveway. Note any tyre that is under inflated, and then drive to the nearest filling station to add air.
Radial tyres can be under inflated yet still look normal. Always use your own tyre gauge for consistent results.
On average, tires lose about 1 psi per month and 1 psi for every 10 degree drop in temperature.
To determine the correct tyre inflation for your car, consult the car’s operator manual or ask your tyre dealer. Do not inflate your tires to the ‘maximum allowed’ pressure which is marked on the side of your tyres.
Select the right gear.
Change up through the gears and into top gear as soon as possible without accelerating harder than necessary. Driving in a gear lower than you need wastes fuel; so does letting the engine labour in top gear on hills and corners. Automatic transmissions will shift up more quickly and smoothly if you ease back slightly on the accelerator once the car gathers momentum.
Air conditioning
Using a vehicle’s air conditioning on a hot summer day can increase fuel consumption by as much as 10 per cent in city driving.
If it’s cool enough, use the flow-through ventilation on your car instead of the air conditioner. At low speeds, opening the window will also reduce fuel consumption by reducing A/C use. At higher speeds however, using the A/C may be more efficient than the wind resistance from open windows and sunroof.
Cruise control
On long stretches, cruise control can save fuel by helping your car maintain a steady speed.
Choose the fuel which best suits your car. Premium, high-octane fuels aren’t necessarily the best choice for your car; higher price doesn’t guarantee better performance. In fact, such fuels don’t provide any greater fuel efficiency. Many cars are designed to use regular low-octane fuel. Check your owner’s manual to see what your car requires.
Regular servicing
Service your vehicle regularly, according to the manufacturer’s instructions. A poorly tuned engine can use up to 50 per cent more fuel and produces up to 50 per cent more emissions than one that is running properly.
Air filters
Dirty air filters can also cause your engine to run at less than peak efficiency. Regular visual checks of the air filter will tell you if it needs replacing and your owner’s manual will also recommend appropriate replacement intervals. Clogged filters can cause up to a 10 per cent increase in fuel consumption.
Oil
Using the correct viscosity oil is important because higher viscosity oils have greater resistance to the moving parts of the engine, and therefore use more fuel. Clean oil also contributes to better mileage.
Power accessories
Be sure to shut off all power-consuming accessories before turning off the ignition. That way, you decrease engine load the next time you start up. Items that plug into your vehicle’s cigarette lighter, can cause the alternator to work harder to provide electrical current. This adds a load to the engine and added load increases fuel use, decreasing your fuel mileage.
Reduce drag
Out on the open road keep windows rolled up to reduce drag. Remove bicycle and roof racks when not in use.
Excess weight also uses more fuel. Remove unnecessary items from inside the vehicle. An extra 100lbs (48 kg) of weight can increase your fuel bill by two per cent.
Plan your trip
Plan your trip, whether you are going across town or across the country. Try to combine several errands in one outing, and plan your route to avoid heavy traffic areas, road construction, hilly trerrain, etc. With a little organisation, you can group your “town tasks” into fewer trips, saving you time and fuel expense.
Make a commitment to drive less, by walking to some nearby destinations. It’s good for your health and the environment
