The best way to buy a car (new or used)

Engine size isn't just all about horsepower, as a large petrol or diesel engine will usually burn more fuel than a smaller one. So it's crucial to think about, if fuel economy is important to you.

Of course, this all depends on how you use the car. A small engine is most efficient when it's used as intended, such as to pootle around town. But when at high speed, a small engine must work harder to keep the car moving – burning more fuel. This means cars with large engines usually make more sense for those who drive long distances regularly.

Diesel engines are often more fuel-efficient than their petrol counterparts, while also typically being more robust and leading to higher resale figures. So is it worth just buying a diesel car? Not necessarily. These cars are more expensive and usually cost more at the pump than petrol.

If you're not regularly doing long journeys, then it's unlikely you'll actually make any savings from going for a diesel model. If you just want a car for pootling around in, it's likely a small petrol or electric car will be your best bet. These cars often have more responsive engines too.

Both diesel and petrol cars have their own advantages – and remember that fuel prices fluctuate. So, before you choose one over the other, check the real miles per gallon (MPG) values using sites such as What Car? and Honest John. This will give you a much more accurate picture than manufacturers' official MPG stats.

Switching between gears is extra work, and while automatics take some of this hassle away, they come with a higher price tag and typically cost more to fix.

When it comes to fuel-efficiency, one doesn't beat the other, so it's best to compare vehicles' miles per gallon figures (see previous dropdown) before buying.

Both fully electric and hybrid vehicles (those with a petrol or diesel engine AND an electric motor) come in all shapes and sizes, from superminis to luxury SUVs.

Lower (or zero) fuel costs are an obvious benefit of these models, as were discounted tax rates. However, from April 2025, drivers of both fully electric and hybrid vehicles will have to pay more-expensive-than-before, standard rates of road tax. So factor this into your decision-making.

Other points to consider are that electric and hybrid vehicles tend to hold their value for resale, but usually cost more to buy.

Learn more about electric and hybrid cars in our guide.

Buyers of the most polluting vehicles pay the most in road tax, so factor this in when you're deciding what car to buy.

Bear in mind too that even though electric and hybrid vehicles are low or no emission, drivers of these do now have to pay some road tax, which – depending on the age of the car – can be at the same rate as petrol and diesel vehicles. (Before April 2025, drivers of electric vehicles paid no road tax, while motorists with hybrid cars were charged cheaper rates.) You can read more about taxing electric and hybrid vehicles in our guide to these cars.

You can also learn more about vehicle tax rates on the Gov.uk website.

If you're looking to save money, you'll want a car that's cheap to insure. The most affordable cars to cover tend to have lots in common, including size. Put simply, it'll generally cost you more to insure a 4x4 than a small city runaround.

Before buying, check the insurance group rating of the exact model you have in mind. The automotive firm Thatcham Research places cars into groups ranked between one and 50, basing this on a range of info, including performance, safety features, price and cost of spare parts. The Hyundai i10, for example, is one of a handful of cars in group one and therefore is cheap to insure. The higher the number, the bigger your premium is likely to be.

For much more info on this, and to see the insurance groups of some common models of car, see our guide to car insurance groups. And for lots of help on finding yourself cheap cover, see our guide to cheap car insurance.

Time it right and you can make significant savings on your car purchase. So when is the best time to buy a car exactly?

• Near the end of each quarter. Dealers have targets to meet, with bonuses up for grabs. Typically, these are based on quarterly sales, making the end of March, June, September and December a good time to buy. They need to shift cars, so will be more willing to negotiate – we discuss how to haggle later on.
  
  If you're buying a car privately, there's unlikely to be a good or bad time, as private sellers don't have targets to meet. That said, keep an eye on prices a few months beforehand – if they're heading down, you may want to wait. Heading up, and it's prudent to buy sooner.

• During quieter periods. Try to avoid weekends, or the start of the month, just after payday. A dealership crammed with wannabe buyers isn't a good place to bargain hard. If you're buying a car privately, it's also worth picking your time when other potential buyers might be away. This could be over Christmas, or deep into the summer holidays.
  
  Think about the style of car too. Summer is when drivers dream of buying convertibles, making winter a good time to haggle for a deal on one.

• When a new model launches. 'Run-out' models are those about to be replaced by a new model. They are often heavily discounted (typically by up to 30%) as dealers make way for shiny new stock on the forecourt.
  
  However, check the resale price as these cars will slump in value when their replacements arrive. You can do this by putting the registration into a free online car valuation tool offered by the likes of Auto Trader and Parkers. These 'run-out' models can be bought from main dealers, though you may also find them listed by brokers online or at car supermarkets.
  
  To find run-out models, keep your eye out for reviews of the latest models – you can then look out for deals on the models they replace.

Before new models can be sold they must pass certain safety tests, with minimum requirements.

The European New Car Assessment Programme (Euro NCAP) provides information for consumers on car safety, awarding star ratings to vehicles after testing how much protection they provide passengers in a crash.

You can search for a review by make and model on the Euro NCAP website.

If you need to flog your current wheels, you've three main options: part-exchange, selling privately or using an online car marketplace...

• Part exchange. This is where the dealer gives you a price for your current car and knocks it off the total cost of the vehicle you're buying. It can save a lot of hassle, but it's highly unlikely to be MoneySaving – you can often get 20% more by selling privately. The dealer will pay less than your car's value so it can move the vehicle along at a profit. So weigh up offers carefully.
  

• Selling privately. Here, you list the car for sale yourself and get cash from the person who buys it. It's more time-consuming but usually more lucrative. You can advertise on one of the following sites:

  • Auto Trader – a two-week ad is £9.95 for cars under £1,000, while cars over £1,000 can be listed from £18.95

  • eBay – a classified ad costs £19.99, while for auction or fixed-price sales, it's £14.99, plus 1% of the final transaction (min £25, max £45)

  • Facebook Marketplace – free to list

  • Gumtree – free to list

• Use an online car marketplace. These have networks of buyers they can connect you with. It's a middle ground between part-exchanging and selling privately, with the amount you can be paid somewhere between the two. Options here include:

  • Carwow – free to list

  • Motorway – free to list, but the site takes commission from a sale

  • PistonHeads –free to list

  • WeBuyAnyCar – free to list, but its transaction fees range from £50 to £125

Any seller should expect that you'll want to take the car for a spin before making a decision, so use this time wisely. Testing a car isn't just about seeing if it feels right, so make sure you follow our list of things to check...

• Is the driving position comfortable? Is the seat and steering wheel adjustable, and do you 'fit' the car?
  

• Is it smooth? Does the car pull away seamlessly?
  

• Does everything sound as it should? Listen out for rattles, knocks and buzzes.
  

• Do the brakes and clutch function smoothly and effectively? Try ordinary braking and doing an emergency stop on an empty road. Also try the handbrake on a hill, and do a three-point turn to check for play in the steering.
  

• Does it veer? Is the car veering to one side, or does it feel balanced?
  

• How does it cope with different types of road? Try the motorway if you'll be driving on it regularly.
  

• What's the power like? Will it climb hills without endless gear changes?
  

• How good is the suspension? Check how well it soaks up bumps and takes corners.
  

• What's the passenger space like? Will people be comfortable on a long journey?
  

• Are the bonnet, doors and boot easy to open? Check this and ask any necessary questions, such as where the bonnet release is.
  

• Will it fit into your space? Have you got a dedicated parking space or is it off-street parking? Is there going to be a problem fitting the car there?

When it's time to bargain you should always bargain hard. Many private sellers will expect to negotiate on price, and if you're buying from a dealer, NEVER pay the list price of the car. Arm yourself with the cheapest web prices and make dealers compete for your custom – handily you can find a 'target price' for all brand new cars using the What Car? new-car deals finder. Use this to haggle.

Haggling can be daunting, even for hardened MoneySavers, but there's nothing to be scared of.

How to haggle for a car

Here are some car haggling tips to bear in mind (we've more general tips in Haggle on the high street):

• Get them to chuck something in for free. Dealers often say they're not allowed to give discounts, but if you're new to haggling, an easy start point is asking them to throw something in on top. Whether it's a free sat-nav or floor mats, if you need an add-on, try not to pay extra for it.
  

• Look for already discounted cars. If the price is already reduced, there's often more flexibility. The boundaries have already been flexed and the psychological loss for the salesperson is reduced as they've already given up on the idea of getting full price.
  

• Don't fill the silence. As negotiations come to a close, a classic sales technique is staying silent. They want you to accept the price just to fill the awkward silence. Make them fill it with a cheaper offer.
  

• Get them to call you back. Psychologically, if they have to chase you, rather than you being super keen, you're more likely to get a better deal.
  

• Flaws mean discounts. Look for the tiniest of dents or scratches. This makes a car more difficult to flog, but still perfectly fine to drive.
  

• Play them off against each other. To really up the haggling, don't target dealers in isolation. Try to play off a number against each other.
  
  This has two advantages: it gives you a solid foundation and it prods their competitive instincts in your favour, as they want to prove they're better than the opposition.
  

• Be friendly, but firm. You're more likely to get a result if the staff member empathises with you. If you're polite, charming and treat the process with humour, you'll get further.
  

• Ask for the sun and you may just get the moon. Remember, do it with charm, humour and style and there's no price or suggestion too outrageous. You can haggle virtually anywhere for anything.
  
  If you're buying a car privately, it never hurts to make an offer. The worst they can do is say no. And even if you walk away there and then, the seller could call you back if there's been little further interest.

The dealer will probably try to sell you the premium version of whatever model you've selected. This may include models with parking cameras, smartphone connectivity, radar cruise control and so on. All these will bump up the cost, but do you NEED them? And if so, can you get any options cheaper elsewhere?

Then check what the dealer's 'throwing in'. This is usually anything from service plans to extended warranties and sometimes even insurance. But always make sure these are actually free. Benchmark a price for the make and model you're after at several used car dealerships – if the price is substantially above this, then it's likely you're paying for the extras in the price of the car itself. Speaking of warranties...

You'd hope that nothing goes wrong after buying a car – but what if it does? Many dealers offer warranties on used cars, while all new cars come with a warranty from the manufacturer – with most offering three years of cover. However, the best car warranties are up to seven years or dependent on the number of miles driven.

Some dealers offer longer warranties (five years or more), and if this is important to you, you could stick to these particular car manufacturers.

How do I extend the warranty?

If yours runs out after three years, it can be an expensive business to extend. Standalone warranty providers will charge upwards of £300 a year to extend the warranty of a three-year-old car.

Some dealers will try to flog you an extended warranty as part of their sales patter, but these can be pricey. You can always buy one when the manufacturer's warranty expires on a price comparison site.

Be aware that there are endless choices and not all are good, so check the clauses for any exclusions. A good policy will cover parts, labour AND consequential loss.

What should the warranty cover?

Warranties should cover most mechanical and electrical faults, but typically won't cover wear and tear, to tyres and brake pads for example. Most problems that might occur with a new car should be covered, which is why it can be valuable to have a decent warranty attached to the sale.

Are service packages ever worth it?

A lot of new cars come with a fixed service plan, so you pay an upfront fee that covers the first three to five years of services. These can be a brilliant way to fix your costs, but check this against what it would cost outside of a package before paying up. Call a few garages as well as the franchised dealership to give you an idea.

Make sure you sort out your car insurance before you take ownership of the car. Just like when you buy a property, you must have insurance in place as soon as you've become the legal owner – even if you're not driving the vehicle just yet.

This is because if anything happens to it, it's your responsibility.

If buying from a dealer, ask if the car comes with any insurance. You may be covered for a week (dealers often include this), but if not you'll need to arrange insurance BEFORE picking the car up and driving away. So always check before you pick up your car.

To find the best deals, see our Cheap car insurance guide and use our Compare+ Car Insurance tool.

Also make sure your policy is valid on your new vehicle if you're transferring car insurance.

What about gap insurance?

Guaranteed asset protection insurance – more commonly known as gap insurance – can cover the difference between the amount you paid for your car (or the amount you owe on the car if you have finance), and the amount an insurance company would give you if it was written off or stolen.

It's a product to think carefully about, as it's useful only in limited circumstances. There have been question marks about the value for money it provides, too. So do weigh up whether you need this product. To help you in that decision, read our full Gap insurance guide.

What about tax?

Road tax isn't transferable between owners, so you'll need to get your vehicle taxed as soon as you take ownership, which you can do on the Gov.uk website.

However, try to buy at the start of the month – if you buy on, say, 25 May, you'll need to pay the full tax premium for May, even though you haven't owned the car for most of the month.

You're unlikely to be able to drive a new car away on the day, even if you haggled the price down by going for one of the showroom models. The dealer will want time to prepare it for sale, whether that's fitting optional extras or getting paperwork together. But if you need your new wheels immediately, stipulate it as a point of the sale.

If you chose to buy a new car built to spec, a wait of several weeks isn't unusual because it may be built overseas and need to be shipped to the UK. Make sure anything you agree to with the dealer is in writing to avoid any problems later on.

What to do upon delivery

As soon as the car's delivered, check it's what you wanted, including any extras. Found something you're not happy with? Don't take it away.

If you already have, and find something you're not happy with later on, the quicker you raise problems, the more chance there is of the dealer taking it back and giving you a replacement or a full refund.

Ideally, you should only buy from a dealer that's listed as a member of the Retail Motor Industry Federation. It's voluntary to join, but members have to meet minimum standards. Look for an established firm and check for online reviews. Also ask friends and family for recommendations.

Some of the biggest names in the motoring business (such as AA Cars and RAC Cars) offer used cars for sale online. These only allow dealers meeting strict criteria to sell on their sites, and cars come with a history check so you're less likely to get any nasty surprises. The AA also offers free basic breakdown cover for 12 months.

As well as advertising their cars on classified sites, some big dealer chains and car supermarkets have their own used car websites. These allow you to buy a car without visiting a showroom – but be wary of ads shouting about massive discounts. You're likely to get a better deal doing your own groundwork and buying a car privately.

Some of the best used car websites and dealers include:

• Motorpoint has 21 branches around Britain and no ties to a specific manufacturer. It offers similar services to a franchised dealer, including test drives and part exchanges.

• Carcraft.co.uk has 10 showrooms in England and Wales. Cars come with a seven-day exchange policy, 12 months' breakdown cover, and free servicing for a year.

• Cargiant has cheap used car prices and a no-haggle policy. But beware – you can't pay on credit card so cannot use this to protect yourself under Section 75.

If you're happy to buy a car online, ensure the seller will carry out history and physical checks on the vehicle before you pay.

Be sure to ask all the dealers in your area for their best deal. If you're prepared to travel far and wide to find a rock-bottom used car price, expand your radius. Make a note of the best deal, and ask others to beat it.

You can always go back to your local dealer to ask whether it'll match the best offer. It might be keen for your cash and happy to do the same deal.

Unfortunately, several things could go wrong. Here are the most common:

• The car has outstanding finance. It could be repossessed without warning.

• The car has been stolen. The police could ask for the car back.

• The mileage has been 'clocked'. The car has far higher mileage than stated.

• The car has major faults. You end up with a dodgy old banger.

• It's massively overpriced. You're ripped off.

As a result, it's crucial to take certain safety measures and perform certain checks when buying a used car.

While it's potentially riskier, there are steps you can take to protect yourself when buying a car privately.

• Go to the seller's home to see the car. If the seller offers viewings anywhere other than their home, think again. This could mean they don't want you to know where they live if there's a problem. Take a friend or family member as another precaution, and for a useful second opinion on the purchase.

• If the asking price sounds too good to be true, it likely is. So, proceed with caution – if it's below what similar models are generally going for, it could be a sign that it's a scam or the car has an underlying issue. Sites such as Glass's Guide, Parkers and What Car? can tell you whether the price is about right. Read the advert carefully, ask the seller why the price is what it is, do comprehensive checks and do a vehicle history check.

• Don't pay a penny until you've checked the car out. This includes its documentation – scammers often try to persuade people to transfer money ahead of the 'viewing'. If you're asked for a deposit, don't pay more than you can afford to lose, and have the seller confirm in writing that they'll refund it if you decide against buying.

• DON'T carry large wads of cash. This is to ensure your personal safety.

It might sound risky, but one of the most popular places to buy a second-hand car is on eBay*. But if you pay using PayPal, its purchase protection does NOT apply to cars – and neither does eBay's own buyer protection. So if anything goes wrong, you can't turn to either to sort it out.

If you still want to go ahead, you should visit and test-drive the car and go through the usual procedures of buying privately, rather than just bid in an auction sight unseen. See our general safety measures and points to watch out for when buying privately, go through the same process, and take care.

For eBay specifically:

• Don't buy a car having never used eBay before. You need to familiarise yourself with how the site works and feel comfortable with it.

• Don't search too far away from home – you MUST see the car. Most auctions last days, but give yourself plenty of time to view the car.

• Set your maximum price and stick to it. It's tempting to up this to seal the deal, but don't let the excitement break your resolve.

• Research the seller. Check the seller's feedback rating to see whether it's positive and ask questions about the car's condition before placing a bid. Do they seem upfront and honest?

• Sellers must be easily contactable. Ask whether you can call to double-check before meeting them in person.

It can be frustrating when a used car develops a fault soon after purchase. You can lessen the chance of that happening by doing all the right checks when viewing the car. Read all about what to look for when buying a used car above.

It's also worth knowing what problems a particular model might have. There are tons of online reviews on sites such as Parkers and What Car? and forums that will flag any common problems that could mean costly repairs down the line.

If you bought a car from a dealer, you're covered by the Consumer Rights Act – for full help, see our Consumer rights guide. The car must be SAD FART – an acronym for:

• Satisfactory quality

• As Described

• Fit for purpose And

• lasting a Reasonable length of Time

The dealer has broken its contract with you if the car doesn't meet these criteria.

What are you entitled to?

If the car turns out to be faulty (and the fault wasn't obvious, such as an engine problem or worn-out clutch), you should be able to get a repair, replacement or refund if it doesn't work.

If the dealer says it pointed out the fault, did it tell you the full extent of the problem? If, for example, you were told that the clutch is stiff but it's worn through, then it should sort the problem.

You may be entitled to a full refund if the fault is serious, and picked up quickly after the sale and you've stopped using the car. If you've had the car for some time, ask for a partial refund.

What if you bought using finance?

If you bought the car from a dealer on finance or paid the deposit on a credit card, and you fail to get a resolution to your complaint within eight weeks, you can take it to the Financial Ombudsman Service.

Alternatively, if you bought with cash or a loan from the bank, find out if the dealer belongs to a trade association and go through its 'alternative dispute resolution' process. For more info, go to the Citizens Advice website.

If you've bought a second-hand car from a private seller, your rights are nowhere near as strong. Essentially, the car is sold 'as seen'. The car doesn't have to be of satisfactory quality OR fit for purpose, which leaves you on wobbly ground if there's a problem. It's really a case of 'buyer beware'.

Say the seller says nothing about an engine problem and you buy the car, then that's it. Even if the vehicle shudders to a halt a week later, you weren't mis-sold, so have no comeback. Though if they lied to you, you do.

The seller mustn't lie about the car's condition or history, such as failing to mention an outstanding major and expensive service issue or a past accident when asked, or giving a false mileage. This is why it's vital to ask the right questions, check the right things and take steps to protect yourself.

If you discover you've been misled, you should be able to return the car and get a refund. You'll have to prove that the seller did know about the problem though, and that could be difficult.

Sadly, you likely don't have many rights, as the useful parts of the Consumer Rights Act might not apply. Auction houses can exclude these, and cars are usually labelled clearly 'as seen' with no claims as to the vehicle's condition, so check the T&Cs of sale before buying. Some car auctioneers belong to the National Association of Motor Auctions, which has a code of practice.

If you bought online, you have additional rights under the Consumer Contracts Regulations, which means you have a 14-day cooling-off period to change your mind once you've got the car. For more info, see our Consumer rights guide.