Your guide to buying a car

Reliability

It might not be as much fun as selecting the colour or interior finish, but choosing a car that won't let you down on those cold winter mornings is a big consideration.

Japanese cars tend to score well in reliability surveys, with a number of manufacturers appearing within the top 10 of the What Car?/Warranty Direct annual survey.

Resale value

All new cars fall in value the moment you drive them home. The trick is finding one that doesn't drop too much – that way, when you come to sell it down the line, you'll still have some value left in it. A good place to check is Auto Trader - or even Confused.com, which ranks the top 10 value holders (see below).

Economy

Frugal cars could save you money with the tax man, and at the pump.

With fuel prices on the rise, it's really important to check how efficient the car is. Typically, cars with lower CO2 are the most efficient because they burn less fuel, plus savings in road tax can also be made by owners of fuel efficient cars.

Look for 'Band A' cars with zero road tax. There are plenty to choose from and you’ll be spoilt for choice when flicking through all those glossy brochures.

Safety

Many new cars come with all kinds of helpful features like anti-lock brakes and electronic stability. But the best way to find which ones are safest is by checking their Euro NCAP performance rating. Check out the table below for the top 10, or go to the Euro NCAP "how safe is your car?" tool for a more detailed report of the car in question.

Insurance

People often forget to think about insurance until it's too late. As a rule of thumb, more affordable, smaller, cars with modest engines and cheap parts have the lowest premiums.

Finance

Go to the 'Ways to pay' section of this guide to find out about your car finance options, including the Nationwide car loan where you can use our simple loan calculator to see how much a Nationwide car loan could cost.

Top tips

Cool factor
Despite everything, you might just go for a car because you love the way it looks. That's fair enough. But whatever you choose, make sure you test drive it first and don't be afraid to haggle with the dealer.

Test drive
Don't just drive the car for 5 minutes up to the roundabout and back! See if you can borrow it for an evening or the weekend. If it's going to be your main family car then load everything into it too. Is everyone comfortable? Enough leg room? How is driver visibility. Do the kids' car seats fit?

Haggling tips
Most of us aren't great at haggling. But there's no secret formula. The key is to just be prepared – knowing exactly how much you can realistically spend, what your trade-in is worth – and, if possible, knowing the invoice value of the car you want. This is the amount the dealer has paid the manufacturer for the car, and is a good target to aim for – albeit with some margin for the dealer of course.

Pick your moment
New vehicle plates come out twice a year – March and September. So it stands to reason this is when dealers start shedding older stock for the new models. If you don't mind your new car being a tad out of date you could grab yourself a bargain. Buying towards the end of any given month could help too, as dealers will be under pressure to hit their targets.

Added extras
Even if a dealer won't come down any more on the price, you might find they're more receptive to chucking in a few extras – like car mats, a year's road tax, an improved sound system, alloy wheels or even just a tank of fuel. It could mean you'll have a higher re-sale value on the car when you come to sell it too.

Warranties
All new cars come with a warranty – but be sure to check how long it's for, and whether the dealer will extend it for free. Read the small print too. Some dealers insist the car is serviced at a main dealer during the warranty period, which can be an expensive way of doing things.

Here are a few tips to help you on your way.

1. Once you've set your heart on a car, it's advisable to order an HPI check. This is just to make sure it's not stolen or has outstanding finance on it.
2. It's always safer to meet the person that's selling the car at their house, rather than your home, a car park or another random location. That way you stand a better chance of gauging whether the seller is legitimate and trustworthy. Don't forget to ask for proof of identity as well, such as their driving licence or a utility bill.
3. Always double-check the vehicle's VIN (Vehicle Identification Number) tallies with the one on the vehicle's registration document.
4. Although a car might appear shiny and well looked after, it's always best to take someone along who knows what to look for and which questions to ask.
5. It sounds obvious, but always make sure you view the car in good, natural, daylight. Avoid night-time or poor weather where you can't really take a thorough look.
6. Where possible, pick a car that comes with a full service history. That way, you have a fairly good idea of how well (or not!) it's been maintained – and when the next service is due too.
7. When viewing the car, don't feel rushed. Methodically check over the exterior, the underside, tyre tread and paintwork for chips and rust spots. It's often the little things that will help you knock the price down a bit.
8. Have a good nose around inside too. Look for telltale signs of excessive wear, such as worn carpets and pedals. Ask yourself if the wear and tear you're seeing is consistent with the car's mileage.
9. Make sure the seatbelts, locks, electric windows, fans, CD, radio (and anything else) work fine. On the test drive, check the mileometer is working as well.

Reliability

The last thing anybody wants is a car that keeps breaking down and costing a fortune. So take a good look around first and see which cars are considered to be the most reliable.

Here's a list of the top 10 most reliable cars to get your started.

Finance

Go to the 'Ways to pay' section of this guide to find out about your car finance options, including the Nationwide car loan where you can use our simple loan calculator to see how much a Nationwide car loan could cost.

Other useful info

Valuation
It's only natural that sellers will be looking to get as much as possible for their car, so do your homework and find the true value first. Try somewhere like Glass's Car Guide or Parkers.

Registration documents
If you're buying the car, you and the seller will need to complete the relevant section of the V5C document. You then keep the green tear-off section and the seller sends the other part to the DVLA. Visit the DVLA to find out more.

Finance documents
Always make sure there's no finance outstanding on the car. If there is, and the buyer doesn't settle up with the finance company beforehand, you could end up losing the car – with no come-back.

Insurance
Don't forget, you will need insurance in place before you drive the car away – or even take it for a test drive. It might pay to check early on how much the monthly premium will be too. Generally, more affordable, smaller, cars with modest engines and cheap parts have the lowest premiums.

Why not get a quick insurance quote?

Road tax
If there is any time left on the road tax, be sure it's included in the sale. If it's being sold untaxed, you will need to have road tax in place before driving it away. Why not haggle with the seller to see if they will arrange the road tax for you?

Warranty
If there is any warranty left on the car, remember to let the warranty company know about change of ownership. That way, if you need to claim on it, there shouldn't be a problem. Also check the warranty can be transferred with the car.

Log books, receipts, MoT certificates
As an absolute minimum, make sure you ask for the appropriate parts of the car's log book (or Registration Document) and any applicable MOT certificate. The full service history is useful too; you won't know when it's next due a service (which could affect the warranty if missed). The next owner will also ask for it if you come to sell the car in the future. You can always ask for any old MoT certificate(s) - plus any garage receipts and other paperwork which is always handy.

Haggle
Nobody relishes the idea of haggling, but an awkward 10 minutes or so might just save you a few quid. Don't be afraid to make a reasonable offer – and don't give up too easily. Equally though, if things aren't working out, be prepared to call it a day. If you regret it later, you can always go back with a counter offer.

Consumer rights
Buying a used car from a trader is not different to buying other goods - the product (ie the car) must be:

• Of satisfactory quality
• Fit for purpose
• As described

If not, then it's likely to be legally faulty and you should get in touch with the seller as soon as possible. It's their responsibility to repair it, replace it - or even give you a full refund.

Personal loan

You might consider taking out a personal loan to cover some or all of the purchase price of your new car.

Buying a car is one of the most popular reasons for taking out a loan and it allows you to pay in instalments.

Debit card

Paying with a debit card isn't much different to paying in cash, as the money will leave your account and be in the dealer's hands almost instantly. The main difference is a debit card might protect you from any problems down the line as you could be covered by your card's dispute process. Just be sure to read the small print and know what rights you have. Find out about Nationwide's current accounts.

Credit card

Credit cards allow you to spend up to an agreed credit limit. Many have introductory offers that may include interest free periods for purchases and promotional features such as cashback. Credit cards allow you to pay a monthly minimum payment or to pay the balance in full, as long as you make your payments by the stated payment date you may benefit from interest free credit during an introductory offer period. If you miss a payment you will face charges. Crucially, credit cards protect you from problems down the line as you could be covered by your card's dispute process which can give you rights against your card issuer in addition to those you have against the seller of the car. Find out about Nationwide credit cards.

Cash

Sometimes cash is the simplest way to buy a car, and with money on the table, dealers can be persuaded into giving you a better deal. The only problem could be if the car develops a problem later on because you're not protected by the extra cover debit and credit cards can give you.

Part exchange

Here, the dealer takes your old car as payment (or usually part payment) against the car you want. You then make up the difference with another method of payment. Aside from taking into account all the factors outlined above, you should also double-check the dealer is giving you a fair value for your car. Most will only offer a trade price, so it's worth trying to get more for it by selling privately first.

Hire purchase

A Hire Purchase agreement is usually set up directly with the car dealership. It is an agreement where the purchase price of the car and agreed interest is paid back by monthly instalments. This type of loan is secured against the car, so you don't own the car until all repayments have been made. Usually a deposit is required.

Personal contract purchase

This is similar to a Hire Purchase agreement, but rather than paying back the full amount of the car, you agree to pay back the difference between the sale price and its price for resale. When the term comes to an end you have the option to pay a final payment (resale price of the car) and keep the car, hand the car back and pay nothing or trade the car in and start all over again. This finance method results in lower monthly payments, but to own the car you will have to pay the final settlement, which can be substantial in many cases.

Lease purchase

Lease Purchase, sometimes also known as Personal Contract Purchase, allows you to make a final payment which is deferred to the end of the agreement, but must be settled to own the car. The difference between the two is that you don't get the option to return the car at the end of the contract