Tips for buying a used car

Buying a used car can be a daunting experience, but Halifax Unsecured Personal Loans has produced a handy guide to steer buyers through the process.

There is a multitude of deals available to prospective buyers, not only from banks and building societies, but from car dealers themselves. Therefore, it is important for drivers to consider a number of factors before choosing your finance deal.

How much can you afford to pay each month? Lengthening the time you take the loan over can reduce your monthly payments but will increase the total amount you repay.

Is there a balloon payment at the end of the loan (e.g. do you have to make a much larger payment when the loan period finishes)? If so, will you be able to afford to pay this?

What other special features does the loan have? Halifax Unsecured Personal Loans have no monthly loan repayments for the first three months – ideal if you have to pay for car tax, insurance, roadside recovery, MOT and other motoring costs in the first few months.

Be wary of buying from a private seller who only uses a mobile phone number or wants to meet you somewhere other than at their house or business.

Check to see if there is an outstanding hire purchase agreement on the car. Websites such as hpicheck.com can help you find out if the car still belongs to a finance house as well as revealing other key details such as if the car has previously been declared an insurance write-off.

Ask to see the log book and full service history. Contact the garage who serviced the car and check to see if there were any major problems.

Beware of private sellers who have oil stains on their driveway or other cars for sale outside their house – a private seller with a high turnover may be simply 'shining and selling' second hand cars gained from other sources.

Check the car's chassis number and VIN number match the registration details.

Don't be afraid to take the car to a garage or mechanic for them to check it before you buy. Consider getting a check from a reputable motoring organisation such as the AA (theaa.com/allaboutcars/inspection_book.html?from=cbg) or RAC.

Never buy a vehicle without a registration document/ certificate (this is the V5/V5C document). Make sure the document is genuine – hold it up to the light to see if there is a DVLA watermark.

Neil Chandler, Head of Personal Loans, said: "It makes sense to take your time and choose the right used car, but buyers should also ensure they do the same when it comes to financing it. With a Halifax loan, customers do not need to make payments for the first three months, which will help when it comes to sorting out road tax and other expenses.

"Buyers will also need to ensure they are insured before they drive off, as it is easy to overlook this necessity."

Halifax unsecured personal loans feature:

No repayments for the first three months of the loan
Option to spread payments over one to seven years
Fixed monthly payments, making budgeting easier
A fixed rate that is tailored to your individual circumstances and needs
Typical APR of 6.9% on loans over £7000.00 via halifax.co.uk/loans/personalloans.shtml