The Car Buyer’s Bible

Part 1: The Know-How

In part 1 of this eBook we’ve got all the practical info that you need to know before buying a car, so whether

you’re a first time driver or an experienced road runner, there’s useful advice for everyone. In this eBook, we’re covering everything from getting your paperwork in order to getting your hands dirty with essential car

maintenance.

Contents

1.1 The Road Tax Breakdown

1.2 Motor Money: Car Finance & Insurance Explained

1.3 Car Maintenance 101: Practical Skills

1.4 Buying Your First Car

1.5 Test Drive Etiquette for Beginners

1.6 Auto-Tech: Essential In-Car Gadgets

1.7 The Rules of Upgrading: How to Sell Your Old Car

1.1 The Road Tax Breakdown

What is road tax? Technically road tax doesn’t exist, the correct term is ‘car tax’ often referred to as ‘vehicle tax’ or its old name - Vehicle Excise Duty (VED). Car tax is calculated by taking into account the size of your car’s engine or its official CO2 emissions rating - depending on the date on which your car was first registered. Tax rates change every year, so keep an eye on the rates following the announcement of the annual financial budget. Cars registered before 1st March 2001 Due to lack of emissions data, tax on cars registered before the 1st of March 2001 is calculated based on engine size, with two different tax prices:

Engine Size 2014/15 Tax Rate (12 Months)

Equal or less than 1549 cc £145

Over 1549 cc £230

Cars registered on or after 1st March 2001 Cars registered on, or after the 1st of March 2001 are taxed based on their official CO2 emissions ratings. Each level of emissions are assigned a tax band which identifies its annual cost.

Tax Band CO2 emissions (g/km) 2014/15 Tax Rate (12 Months)

A Up to 100 £0

B 101-110 £20

C 111-120 £30

D 121-130 £110

E 131-140 £130

F 141-150 £145

G 151-165 £180

H 166-175 £205

I 176-185 £225

J 186-200 £265

K 201-225 £285

L 226-255 £485

M Over 255 £500

What do I need to know? Any UK registered vehicle which is parked or driven on public roads must be taxed by law. In order to discourage reckless drivers from driving uninsured vehicles, you cannot tax a vehicle without proof of valid car insurance. As of October 2014, traditional paper tax discs will become obsolete - meaning you no longer have to display one in your car. Tax checks will be carried out by a computerised system which cross references your vehicle’s registration with tax records. What if I’m not using my car? If your car is currently off the road or you plan on taking it off the road for storage, you’ll need to declare it - so as to avoid any tax penalties. In order to declare this, the vehicle’s registered keeper must apply for a SORN (or Statutory Off Road Notification). When applying for a SORN, your vehicle must be kept off public roads or land - meaning you’ll need to keep your car on your driveway or in a garage.

1.2 Motor Money: Car Finance & Insurance Explained

Car finance explained Financing is a great option for those in need of a new or used vehicle, but lacking the upfront cash. In basic terms, it works in similar ways to any other loan, money is borrowed from the lender and repaid over a set period of time - with interest.

Image source: William Warby

The different types of financing available There are numerous different types of car financing available - each with their own set of benefits and drawbacks, with some more suited to different types of buyers. The majority of car financing is either hire purchase or PCP, however there are other options available. Hire Purchase: This is the most straightforward type of financing. In most cases, buyers are required to commit to monthly payments until they have paid off the rest of the cost of the car - plus interest. Once all of the money has been paid back, the car is in your full ownership. However, until all repayments have been made, you cannot sell or make alterations to your car. PCP (Personal Contract Purchase) Finance: Buyers pay a small initial deposit, then pay an agreed monthly amount towards paying off the rest of the car’s cost. However, part of the car’s value is withheld - this amounts to the expected value of the car once the contract has ended, taking into account its depreciation of the car’s value. Once the contract is finished, the owner can either pay the lump sum to keep the car, hand it back to the dealership or sell it to fund the final payment. 0% Interest Finance: This is the only interest free financing option available, meaning you don’t pay any extra for your car. However, a large deposit (usually around 40%) is required, meaning this is only really a viable option for those with enough cash for a car. The repayment period is generally shorter than other forms of financing, meaning your monthly payments will be higher. Interest free financing is an attractive option if you’ve already got the cash but want to spread out spending it. 0% financing is generally only available from dealerships looking to push sales on particular models.

The Car Loan Warehouse are experts in car financing, complete our obligation free application or use our online car loan calculator for an instant quote. Car insurance explained Insurance is a must, not only for legal reasons, but for peace of mind - providing you with financial cover against damage, theft, bumps and more serious accidents. Although it can be expensive for some, it’s an essential part of car ownership that can’t and shouldn’t be avoided.

Applying for insurance When looking for insurance, just like when looking for your next car, it’s important to shop around. Quotes and prices vary significantly between different insurance providers and comparison sites are a useful tool for sifting out the cheapest options. When providing you with an insurance quote, insurers look at a number of factors which determine how much risk your car is exposed to. Factors such as age and driving experience are key to determining price, with younger drivers being more likely to have an accident than more experienced ones - meaning they pay a premium on their car insurance. When completing an insurance application form, you will be asked for other information such as your address, occupation, what you will use your car for and where it will be parked. All of this information along with the value, make and model of your car is used to calculate your insurance quote. It’s vital when completing an application that the information you submit is one hundred percent accurate - as false information could invalidate your insurance! The three types of car insurance Fully comprehensive: As suggested by the name, this is the most comprehensive insurance cover, providing you with full coverage, for any eventuality. Naturally, this is the most popular type of car insurance, meaning drivers can take to the roads in full knowledge that they are covered for just about anything. Third party: This is often the cheapest insurance option, giving you the legal minimum amount of cover needed to drive. It essentially means that if you damage someone else's vehicle or property while driving, your insurance will pay for any claims they may make. However, you will not receive any compensation or cover to repair or replace your own vehicle. Some drivers are often tempted by cheaper third party insurance, which have the disadvantage of being landed with hefty repair bills in the event of an accident. Third party plus fire and theft: Essentially the same as third party insurance, these policies also protect you against fire damage or theft of your vehicle, giving you additional peace of mind.

Image source: Alan Cleaver

Things to look out for when selecting your insurance Not all insurance policies are equal, don’t be tempted by something that seems too good to be true, as more often than not - it probably will be! Every time you make a claim on your car insurance, you will be charged an excess fee - this is to deter people from claiming for very small repairs etc. You will also notice that if you make a claim, you insurance premium will increase dramatically the following year. Look out for insurers who reward loyal customers and offer a no-claims bonus for safe drivers - allowing you to build up a discount on the cost of your annual insurance.

1.3 Car Maintenance 101: Practical Skills

Whether you’re new to car ownership or you’ve managed to leave your maintenance to the professionals throughout your driving life, there are a couple of essential tips worth knowing to keep your vehicle in tip top shape. Our handy “how to” guides make it easy to perform essential maintenance, without having to fork out the money for a mechanic. It’s time to roll your sleeves up and get stuck in - your bank balance will thank us later!

Featured Expert: Maintenance expert, Chris Longhurst from CarBibles.com has shared his words of wisdom when it comes to performing essential checks on your car. “The low-hanging fruit is very low-hanging. Change your oil and check your tyre pressures. Most new cars will prompt you when an oil change is due. If not, do it twice a year - about April and October - after the summer and winter driving times are over. Check your tyres once a week with a decent tyre gauge (i.e. not one on the petrol station air-line). Again, most new cars will tell you if the pressure is low and if it is, top them up but don't over-fill them. Top tip: Don't be surprised to see the tyre pressure warning light come on the first cold morning in autumn or winter. If your tyres were a bit low, the colder overnight temperatures could drop the pressure just enough to trip the warning light. Go and top them up.”

How to: Inflate your tyres Tyre pressure should be checked and corrected regularly, as tyres naturally lose pressure over time. When your tyres are inflated to the correct pressure, your car will not only handle better, properly inflated tyres will also improve fuel economy and safety on the road. Over or under inflated tyres can present a hazard on the road, impacting the level of grip your car has on the road or potentially even bursting at high speed. Attention: If your tyre pressure is constantly decreasing, it could be a sign of a slow puncture - you should take your car to a garage immediately and get the tyre in question repaired or replaced.

1. Always make sure your tyres are cold when you are checking their pressure or inflating them. This means no long journeys directly beforehand, as the heat caused by the friction of driving can give you a false tyre pressure reading.

2. Refer to your car’s manufacturer manual to identify the correct tyre pressure. Many modern cars also have this information repeated on the door sill or back of the fuel cap cover.

3. Remove the small dust caps by unscrewing them from your wheels, setting them aside in a safe place.

4. Use a pressure gauge (these are widely available from garages or DIY shops) to take a reading of your car’s tyre pressure by pressing and holding the nozzle against the inflation point on the tyre. Some garages also have air pumps which will tell you the pressure of your tyres, however these can give inaccurate readings. Your tyres should be at the pressure specified in your car’s manual for that particular model.

5. If any or all of your tyres are under inflated, you will need to correct this by inflating them to the correct pressure. You can do this by using the air pump at your local garage or by purchasing a foot pump specifically for inflating car tyres.

6. Holding the nozzle against the air inlet and inflate the tyres until the correct pressure is reached. Once this is done, double check it using your pressure gauge to ensure an accurate reading.

7. Replace the dust caps on your wheels and you’re done! How to: Check, top-up and change your oil We recommend checking the oil level in your engine regularly. Your car requires plenty of oil to keep things running smoothly and if you let it run low, it could lead to some very costly repairs! Luckily for you, checking and topping up your oil couldn't be easier.

1. Park your car on a flat and level surface, ensure your engine has been switched off at least 5-10 minutes prior to checking your oil - giving it time to settle down into the reservoir.

2. Open your bonnet and locate the oil dipstick, this should be easy to find in the engine bay. If you have difficulty finding it, check your car’s manual for a location diagram.

3. Pull the dipstick out of its hole - it will resemble a long thin piece of metal. Use a cloth or paper towel to wipe off all of the oil coating it.

4. Look closely at the dipstick, near the end of it you will see two markings indicating the minimum and maximum amount of oil for your engine.

5. Gently push the clean dipstick fully back into its hole, then remove it again. Look closely at where the oil level reaches up to, the oil level will be visible as a dark liquid on the end of the dipstick.

6. The oil level should be between the minimum and maximum markings - if it’s towards the lower end of the scale, you should top up your oil.

Topping up your oil level is easy. Refer to your car’s manufacturer manual to identify the correct type of oil for your car. Once you have purchased the correct oil, simply remove the oil filler cap under the bonnet and use a funnel to add a small amount of oil to the engine. Do not overfill your car with oil as this could lead to leaks and damage. Instead, add a small amount at a time, then repeat the steps above to re-check the oil level - ensuring you allow 5 minutes for fresh oil to settle into the reservoir. Depending on how long it’s been since your last oil change, you may need to drain and completely replace your car’s oil. Different manufacturers recommend an oil change at varying intervals, depending on your annual mileage and the type of car you drive - check your car’s manual for further information. Although changing your oil is a slightly more complex process, it’s still well within the boundaries of money-saving home maintenance for most - check out this handy step-by-step guide to give it a go!

Image source: Chris F

What if I can’t fix the problem myself? Some repairs are beyond the help of “how to” guides, however that doesn't mean you should take your car to the first garage you come across. Unfortunately, some garages have developed poor reputations, taking advantage of people’s lack of car knowledge and charging over the odds for repairs. Our featured expert below shares some useful advice for finding the best mechanic.

Featured Expert: Ian Griffiths of WhoCanFixMyCar.com has shared some sound advice when it comes to hiring a professional. “Unfortunately, as a car ages, repairs are inevitable - be it replacing tyres, removing minor dents and scrapes or bigger jobs such as clutch or gearbox replacements. It’s tough enough to know where to get the car serviced, never mind bigger issues such as replacing the clutch. The same questions always arise: How do I know I’m not getting ripped off? Will the work be of a high quality? Will the garage use good quality parts? That’s where a service such as WhoCanFixMyCar.com proves invaluable. Simply post a job online and let the garages come back to you, comparing prices, convenience and importantly reviews from real customers. You wouldn’t buy your car insurance without comparing quotes so make sure you compare your maintenance quotes!”

1.4 Buying Your First Car

As a new driver, buying your first car can be an exciting time - and so it should be! However, there are lots of factors and paperwork which can seem alien to first time drivers. If you’ve never gone through the process of buying and owning a vehicle before, we’ve got some top tips so you can avoid any potential pitfalls and get yourself on the road as quickly as possible.

Featured Expert: Top auto journalist, John Slavin of HonestJohn.co.uk, shares his top tips for new drivers looking for their first car. "An important tip to remember is that cheapest isn't always best. Buying a £500 banger will probably cost you more in the long run in repairs and maintenance - so visit a dealer and spend a bit more. If things go wrong then you have some comeback with a dealer to get things mended - that isn't the case with a private sale. And as a young driver your most important consideration is insurance - get a quote from a comparison site for every car on your shortlist - there can be wild variation in quotes between very similar cars. And be honest when filling in the forms - if you tell a fib then your insurance probably won't be valid!"

The majority of first time buyers will be looking for a car on a budget and those of you who are lucky enough to have a big budget should probably still stick to sensible options. Insurance companies put a premium on new drivers and until you’ve held your license for a while and built up a no-claims discount, you could be facing a hefty insurance bill. In order to get around this - as a general rule; the cheaper the car, the cheaper the insurance.

Image source: Digo Souza

First car: What to look for? Cars come with lots of additional costs and once you factor in the insurance, tax, maintenance and fuel, it can soon add up to a considerable amount. Therefore it’s essential you identify your priorities. If you’re lacking the funds for running costs, then look for an economical car. Many of today’s small city cars fall below the 100g/km emissions tax band, meaning you won’t have to pay any car tax. As an added bonus, these vehicles are nearly always super fuel efficient - meaning more time between trips to the petrol pump. You’re unlikely to see these economy figures on older vehicles and as suggested by Honest John, you may be saving yourself money in the long run by purchasing a newer, more expensive car upfront. For a higher initial cost, you will benefit from low running expenses and repair bills.

Featured Expert: Young driver expert Ray from 2pass.co.uk shares some valuable advice for first time

drivers in the market to buy.

It’s your first car so don’t go crazy. The bigger the engine the more you’ll pay and the more modifications you have the greater the cost of your insurance premium. Once you have built up a couple of years of No Claims Bonus, then you can upgrade your car to something a little flashier with lower insurance costs. Decide how much you can afford to pay. Include the cost of insurance, MOT, road tax, petrol, repairs and servicing. Don't rush into a decision. Shop around. Look through price guides to see how much you should expect to pay for the car you want. Buying from a dealer is the safest way of buying as you get the maximum protection of the law. But there are dodgy dealers, so look for an established firm with a good reputation. Ask friends if they can recommend anyone.

1.5 Test Drive Etiquette for Beginners

When looking for a new or used car, it’s essential that you take it out for a spin before you make your mind up. Every car has its own unique handling and you’ll soon become accustomed to what you like and what you don’t. With this in mind, we’ve gathered up our top tips when it comes to taking a car out for a test spin. Test drive tips

Check you’re insured for the test drive, dealerships will insure their cars specially, but check you have third party cover if it’s a private sale

Ask the owner or dealership for a thorough test drive, at least 20 minutes in length Once you’re in the vehicle, make sure you can adjust the seating, mirrors and steering wheel to a

comfortable position Before setting off, familiarise yourself with all of the driver’s controls, ensuring you can comfortably

reach and operate them as required Test the vehicle on a variety of roads from slow residential streets to motorways - this should give

you a feel for how the vehicle handles and performs in a variety of situations Ensure that the vehicle has sufficient power to accelerate and overtake at motorway speeds

Image source: Land Rover MENA

Featured Expert: David Motton, road test editor for Good Motoring Magazine at MotoringAssist.com shares some top tips when it comes to arranging your test drive. "You need to make sure the test drive is long enough for you to decide if the car is right for you. A quick spin around the block isn't far enough. Ask for a test drive which takes in a variety of different roads, including the type of road you spend most time on. For example, if you regularly travel on the motorway, make sure you try the car on a dual-carriageway so you can assess its performance, noise levels and comfort at 70mph."

Test driving a used car When it comes to buying a used car, especially from a private dealer, there are further considerations you should take into account during your test drive. Used cars generally lack the guarantee of performance and unfortunately, some unscrupulous sellers may set out to deceive buyers by attempting to hide issues with the vehicle. Here’s some additional points to keep in mind when looking at a used vehicle:

Listen for any unusual rattling, vibrations or squeals coming from the engine or chassis during idling and whilst driving

During your test drive, ensure you take the car through all of the gears - the transition should be smooth and silent

When you start the car, the engine should start promptly - watch out for any smoke coming from the exhaust as this could be an indication of serious engine problems

Try accelerating whilst loosely gripping the steering wheel - some cars with braking issues will pull to one direction

If possible and only when it is safe to do so, try performing an emergency brake to check that the brakes are in full working order

Seek out areas with speed bumps during your test drive and listen for any unusual sounds coming from the suspension when you pass over them

Finally, before agreeing to a purchase - thoroughly inspect and test every part of the vehicle, including seat belts, doors, door handles, bonnet, boot, locks, mirrors, windows and any other moving part to ensure they are in working order

Hopefully, your test drive will make you feel right at home, helping you identify the right car for you. However, if you do have any concerns during your test drive, ensure you ask the dealer or seller for more information. If you’re not convinced by their answer then walk away - there are plenty more cars on the market.

1.6 Auto-Tech: Essential In-Car Gadgets

Once you’ve bought your car, you may wish to purchase additional gadgets and gizmos to enhance your driving experience. This is especially true if you’re buying an older car which lacks modern day technology or perhaps you’re saving on expensive options by kitting out the car yourself. Either way, there’s plenty of gadgets which can transform even the most basic of interiors into modern day technological marvels.

Featured Expert: Alex Kersten, editor of CarThrottle.com shares some gadget favourites when it comes to getting your car kitted out. 1. If you've got an older car (pre USB integration) I'd strongly recommend spending a few pounds on a 12V USB converter, which means you can plug your phone in to keep it charged - this simple device not only keeps your mobile charged, it also eliminates the need for a bulky and expensive sat-nav system (Google Maps is a free app, after all). 2. Again, one for older cars, would be a cassette player adapter, which allows you to play music (Phil Collins for true petrolheads) via your iPod/iPhone through the car's speakers. 3. Apps - for all types of owner, there is an app to suit his or her needs. If you want to fix your own car, for example, there is 'Car Mechanic' (Android), which gives you step-by-step instructions plus a list of required tools. 4. Dashcam - whether you're using it to track your progress on a race circuit or simply as a safety net when you're out and about (especially on the weekends when drivers lose the ability to function), a dash cam is a must.

In-car audio If you can’t live without your driving music, then in-car audio is a big selling point. Most new cars on the market today come with multiple connectivity options, allowing you to play music from your mp3 player, stream it wirelessly from your phone or even play it from a USB memory stick. Check the specification level of new cars by asking the dealer or by looking in the brochure - features like auxiliary inputs, Bluetooth connectivity and USB sockets will either come as standard or as an additional add-on at extra cost. If you play music from your smartphone, Bluetooth connectivity offers the ultimate in-car audio solution. It allows you to wirelessly connect your phone to play your music through the cars speaker system, with most models automatically syncing up, allowing you to make hands-free calls and even receive text messages straight to your dashboard display. However, if your budget doesn’t stretch far enough to accommodate such features, fear not - there are plenty of aftermarket gadgets which can be the answer to your audio needs. FM transmitters are a cheap workaround to play music through your car’s radio. Simply plug the transmitter into your mp3 player or phone’s headphone jack and you can broadcast your own mini-radio station. Find the transmitter by tuning the frequency on your radio and voila - you’ll have access to all of your music on-the-go. Top tip: If your car has a USB socket, don’t waste your money on buying a separate 12v car charger for your phone, use the USB lead which came with your phone to plug it into your dashboard - charging it as you drive.

Image source: Dru Kelly

Sat-Nav Sat-Nav systems remain one of the most popular aftermarket gadgets for drivers. They’re especially useful if you regularly travel to new destinations or you're just beginning to drive and are unfamiliar with local roads. Although Sat-Nav has been around for a long time, integrated systems are still somewhat rare, unless you are purchasing a luxury or top of the range vehicle. Fortunately, aftermarket external Sat-Navs are relatively cheap, work seamlessly and have their own advantages. Sat-Navs which are built into cars may outdate within their lifetime and render themselves obsolete, whereas their external counterparts can be replaced and upgraded. Many of the latest Sat-Nav systems include useful features such as lane information, speed camera warnings and local services listings. If you don’t want to fork out the cash for a standalone Sat-Nav system, many of today’s smartphones are capable of performing the same tasks. For simple navigation on-the-go, try using a free mapping service such as Google Maps or if you want the full experience with spoken directions - download a Sat-Nav application such as the TomTom mobile app for iOS. Simply select your destination and then secure your phone in place using a dashboard or windscreen mounted phone cradle.

1.7 The Rules of Upgrading: How to Sell Your Old Car

Just as you would expect when buying a car, you want a fair deal when you come to sell your old one. With so many part-exchange offers about, it’s hard to know whether selling or trading in your car is going to get you the best deal. Part-exchange deals Many dealerships will offer to take your old vehicle off your hands, essentially part-exchanging it for a newer car. This offers some key benefits in that you don’t have to organise getting your old car scrapped as they will complete all the necessary paperwork for you. It’s as simple as driving in with your old car and driving away with your new one. It also means that the value of your old car will be taken off the value of the new one, lowering the purchase costs. Don’t be put off if your dealership initially offers you very little for your old car, for the most part - this exchange is subject to bartering and you can usually get them to offer more if you refuse their first offer.

Featured Expert: Car detailing expert Richard Cooper from PolishedBliss.co.uk shares his top advice with us when it comes to preparing your car for resale. The bodywork should be clean and smooth to the touch. To achieve this, wash the car first and then use a tar remover followed by an iron dissolving gel to quickly and easily remove all forms of bonded contaminants. Once the bodywork is clean and smooth, use an all in one (i.e. one-step) polish and protectant to lightly cut the paint back and lay down a temporary coat of protection. This will make the paint look richer and glossier. Make sure the windows are crystal clear inside and out. The secret to achieving a smear-free finish is to use two lint-free towels; one to apply the cleaner and do the cleaning, and a second to gently buff the glass dry.

Selling privately Due to the ease of part-exchange deals, selling privately has lost its appeal to many drivers looking to upgrade. However it’s not without its benefits, the vast majority of private sales generate a higher return than part-exchange deals - meaning you’ll get more money for your old car. Just like selling a house, there’s plenty of things you can do to ensure you get the most money back for your old car, ensuring a quick and profitable sale. Most private buyers will want to see a full MOT and Service history, including any additional paperwork with the vehicle and proof of any recent repairs. Boost your car's resale value by ensuring you keep all of this information safe and up-to-date.

Image source: Mike K

Cleaning is top of the priority list if you want to impress prospective buyers. Investing a small amount of money on repairing any cosmetic damage and thoroughly cleaning your car inside and out can lead to much higher sales prices. Check out the advice from our featured bodywork repair experts below.

Featured Expert: ChipsAway.co.uk is the UK’s leading minor car body repair specialist, and they’re sharing their top tips on how to get the best possible price when selling your old car. When it comes to selling your car, you clearly want to achieve the best price you can for it. A spotless appearance will help with this and so we’ve put together a few simple ways to help you secure the highest return. The interior of the car is a great place to start; make sure the carpets and mats are vacuumed thoroughly to eliminate all traces of dirt and pet hair, clean all surfaces including the air vents to remove any dust which may have built up over time and polish the windows inside and out - making sure to leave them smear-free! An air-freshener also helps to create that appealing ‘new-car’ smell. Externally, obviously it is important to make sure the paintwork is ‘up to scratch’ and if you can, have any minor damage such as paintwork scratches and bumper scuffs, repaired. ChipsAway offer a convenient, mobile paintwork repair service at a very reasonable cost, which could therefore help you to achieve a far higher price for relatively little outlay. Washing, waxing and polishing your car will also help you achieve the best price, but make sure you use products specifically designed for this purpose. Alloy wheels are a particularly important area to focus on, as brake dust and grime can quickly build up and take the shine off your vehicle. Better still, it might be worth employing a professional valet/detailer who will have all the necessary equipment and skills to ensure a spotless and sparkling all-over finish!

We hope you’ve found part one of our Car Buyer’s Bible useful - look out for part two, where we’ll be giving you top buying tips for

each type of car. So whether you’re after a safety-first family car or a sporty hot hatch, we’ve got the low-down on what to look for

and where to find it. | The Car Loan Warehouse ©