Lifestyle

Buying a new car can be an expensive business so making sure that you get the right car for you is paramount. A car purchase is normally the largest outlay you will make next to buying a house.

There are a lot of factors that affect your car buying decision, the size and type of car, where to buy, type of motoring, the maintenance and running costs, your personal preferences, when to buy and probably the most important factor - the cost!

Apart from the initial purchase, the biggest cost is car depreciation - the amount of value your car loses as it ages. Heaviest depreciation occurs in the first year and differs widely according to the car. Generally, though, prestige, specialist and sought-after cars depreciate more slowly than mass-produced cars from volume manufacturers.

As a rule of thumb, first year deprecation is halved for the second and third years. So if a car loses 30 per cent of its value in year one, it will lose 15 per cent in year two and 15 per cent in year three. After a car's third birthday, condition, mileage, colour, specification and so on determine depreciation levels out and value. Trade guides will tell you the typical depreciation for your chosen car.

Fuel costs are likely to be the next biggest expense. Divide your annual mileage by your estimated miles per gallon (mpg). Multiply the figure you get by the price of a gallon and the answer is your annual fuel bill. You will be able to find out servicing, repair and, if your car is older than three years, MOT test costs from your chosen garage or dealership.

You've decided that you want to buy yourself a brand new car. It may be very obvious, but the first thing to do is decide what type of car would suit you best.

To help you decide the kind of car you should buy, ask yourself how you will be using it. Some questions to consider would be:

• Do you usually travel alone, or do you need a family car with space for five or more along with generous luggage space?
• Will it be your only car, or a second car for the family?
• What's most practical for where you live - inner city, suburb, and rural area?
• Remember to think about parking and the size of your garage, if you have one. Would a hatchback be more practical than a saloon?
• Would a diesel model be cheaper to run?
• Would a small automatic model be more sensible if most of your driving is around town?
• Will the car be used for commuting to work, or just leisure use?
• How much mileage do you expect to be doing every year? If you spend a lot of time in your car, comfort will be important.
• Will you be pounding up and down motorways - in which case you may need a good cruiser that's steady in crosswinds - or just zipping about town where a small, agile hatchback might be ideal?

The worst thing to do is to put yourself entirely at the mercy of a new car salesmen - in most cases, they are under pressure to sell in order to meet sales targets and earn commission. There is now so much information available on both new and used cars (guides, magazines, books, Internet web sites) - it is very easy to find out about the car you are interested in before going anywhere near a showroom.

This guide considers general factors, but you should also read specifically about the make and model you're after. Study the range of cars available within that model range. Don't just decide that you want a Vauxhall Astra - establish which engine size you prefer, what trim level and what options you would like. Compare performance figures. Zero to 60-mph acceleration times and top speeds are pretty much irrelevant in real life driving, but they are good yardsticks by which to compare cars. This, along with fuel consumption figures, should help you to determine the engine size you require.

Remember that larger engine cars are best for motorway cruising, small nippy engines for buzzing around town, and diesels for high mileage. Trim level and options can be decided by what safety features and creature comforts you require. Do you want ABS (anti-lock brakes), traction control and airbags? Is power steering a must? Are effort-free electric windows important? If you go in armed with a list of exactly what you want, it will be harder for the salesmen to 'add-on' features that you later realise you didn't really need - leather upholstery, sunroof, alloy wheels etc. These are highly profitable to the dealer but you will find they don't add much to the value of your car when you come to resell. Most manufacturers will post you a brochure - which contains engine sizes, trim levels, specifications and options. You can also find this information on some of the manufacturer's websites.

The most obvious answer to the question of where to buy your new car is at a main dealer. However, that's not the only place! Other possibilities include:

• Searching for pre-registered new cars at large used car dealerships or 'car supermarkets', where it's often possible to find cars with 10 miles or less on the clock!
• Sourcing agencies and car brokers, which can often get you cars at discount prices.
• Direct import agencies that import UK-spec cars complete with manufacturer warranties from the Continent at cheaper prices.
• Privately importing British-spec cars from Europe.
• Surfing the Internet. Manufacturers have 'virtual' showrooms now, with some allowing you to order brochures, view your choice of model in different colours and specifications and book test-drives. Many have already started selling cars over the Internet. Numerous other websites already do so.

For an alternative to ownership, check out leasing and contract hire companies that supply almost any make of car, as well as arranging the financing.

You can secure bigger savings if you're clever about when you buy. The registration plate changes twice a year, in March and September. These are very busy months for the motor trade and the high consumer demand makes discounts less likely.

February and August are slack months and you'll find dealers are more willing to talk discounts, for two reasons. First, they will be keen to have a flow of cash coming in, even if that means settling for less profit than normal. Second, they will want to reduce stock levels in readiness for the impending, manic plate-change month.

However, you must also bear in mind that the age-identifying letter or number on the registration plate influences your new car's future value. So, buying a car in, February rather than March, you can expect it to be worth typically £250-£750 less.

Buying in the traditionally quiet month of December can bring savings for the same reasons. And, as with the plate change, a car registered in, say 2004 will be worth typically £250-£500 less than an identical car registered in 2005 - despite their registration dates being separated by only a few days. Make sure the extra discount covers this discrepancy.

You can also strike it lucky by shopping at the end of the month - even in March and September. This is because manufacturers set sales targets for dealers. Reaching these targets brings dealers lucrative bonuses and if a dealer is one or two cars short of target at the end of the month, it makes financial sense to sell them for little or no profit just to earn the bonus.

Watch out for the deals and discounts available. Most major dealers will have some sort of 'special offer' available at any given time and you can usually find these advertised in the national or local press. Some discounts and offers are only available at 'participating dealers' usually the ones advertised in local newspapers.

Special offers usually represent a worthwhile saving, but always read the small print and ask about the conditions attached. Zero per cent finance sounds great, but you may have to cough up 50 per cent of the purchase price to start with, and pay another large lump sum to own the car at the end of the financing agreement! Free insurance may be fine if you are young and it's your first car, but in some cases the free insurance may not take account of your existing no-claims bonus.

Some offers are simply designed to shift a model that is slow-selling or is about to be replaced by a new model, so your 'new' car may depreciate a lot faster than you might expect. In which case saving money now by buying an older model dressed up with a nice set of alloys, or maybe just a cheap pop-out sunroof, could mean losing a lot more when it comes to selling time.

It's all too easy to go down to a dealership, choose a shiny new car and hand your dirty old one over to the friendly salesman. However, trading in your car is not always the best way to dispose of it. Certainly it makes for a quick and hassle-free method, but you are likely to get more for the car if you sell it yourself. After all, the dealer has to keep a clear margin in which to, if not make a profit, then at least get his money back.

Most trade-ins get passed on to the general motor trade or disposed off through the auctions. A franchised dealer will usually only want to resell newer well-maintained cars on his own forecourt.
In some cases if the dealer is keen to sell you a new car, and perhaps tie you in to some nice commission-earning finance as well as meet his sales targets, he may well offer you more for your old car.
However be careful - he could try and make up the shortfall elsewhere (a smaller discount, an expensive finance deal, etc.).
Generally speaking dealers will pay between 5-10 per cent less for your car than if you were to sell it privately. If the car's condition is a bit rough, it may be best to trade it in. But if it were a neat, low-mileage car, it would be better to sell privately and put the cash towards buying your new car.

Choose a sensible place to advertise it. For instance, a Porsche is more likely to sell in a classy specialist publication than the classifieds in your local paper. Also research its value. Look in price guides and crosscheck in classified ads for the prices of similar cars. Be realistic, too.

Craft the wording of your ad. Avoid trade phrases such as 'mint condition', 'first to see will buy' and 'no expense spared'. Also avoid 'ono' because all prices are negotiable anyway and it makes you sound unconfident about the price.

Instead, cram your ad with factual information - exact model, colour, age, registration prefix, mileage, optional equipment and, where appropriate, full service history, road tax and MoT. Make sure it is accurate or you'll leave yourself open to prosecution. And don't forget the price and your phone number - many people do.

As for the car, give it a thorough clean, inside and out. Go for a professional valet if you can afford it. You'll probably get the money back anyway, and the car will certainly sell faster. Collate all relevant paperwork, such as logbook, MOT's, service bills and any receipts. Prospective buyers will feel more comfortable about the car's history and make you seem a conscientious owner.

It's lovely, it's shiny and it's got that new car smell. You know it's the car for you, and all you want to do is sign wherever the salesman tells you to and take it home.

Trouble is, on that first drive home you may find that the steering is too heavy, that you can't adjust your seat enough, and your head touches the roof. By then it's too late!

That's why it's vital to thoroughly road test a new car before buying it. Make sure you are comfortable, and that you find it easy to drive and also satisfy yourself that its performance and handling meet your expectations.

Make sure the car is right for you. Check there is enough space - if you are tall legroom may be cramped, your knees may touch the steering wheel, and your head could be touching the roof. If you're short, you may find you're sitting too low to see around you.

If you have a family, take them along to see the car and make sure they all fit and are comfortable. Check boot and/or luggage space; do the rear seats fold down to make more space? Is there enough storage space in the car itself - glovebox, parcel shelf, cubby-holes, cup holders etc.?

Check for headroom and legroom both in the front and in the back. See if there is enough shoulder room and anywhere to rest your elbows.

Showroom lighting can flatter, so once you get the car out into the harsh light of day, have another walk around it. Cast a critical eye over the paintwork, panel gaps, exterior trim and the way the doors and boot lid open and shut.

Make sure that:

• It's easy to get in and out of. On a two-door or three-door model, make sure access to the rear seats isn't too difficult, especially if there are elderly members of your family, or if you intend to use child seats.
• The seats are firm and supportive without being hard and uncomfortable. How much adjustment do they offer? (up/down, tilting backrest, lumber support, adjustable headrests etc.) Can you tailor a good driving position for yourself?
• All the controls make sense to you and that they are easy to see, reach and use.
• All-round visibility is reasonable; are there any blind spots; will lane-changing, parking and reversing be a problem; is rearward vision affected by headrests, thick rear pillars, small rear screen etc.?

Sit in the driver's seat with the door shut. Does it feel light and airy, or cosy, or even claustrophobic? Do you feel like you are sitting low or high, reclined or upright? Are the pedals and steering column offset? If so, do you find this awkward? Can the steering column be adjusted for reach and rake?

Some people find it daunting, but road testing a car is a must. You may like the look of the car, and it may be nice to sit in, but you will be spending most of the time driving it. So it's important you like the way it goes, turns and stops; that you find it easy to drive and manage; and that it's well suited to your driving requirements.

The road test itself should try to take in a mixture of driving conditions from city traffic to motorway cruising. Depending on where the dealership is and the amount of time you have, this may not be realistic, but it is important to assess the car in as many different situations as possible.

It may be smooth at speed but cumbersome around town, or easy to park in tight spaces, but hopelessly under-powered when you need to overtake.

• Get the 'feel' of the car
  Get used to the car before beginning your assessment. Take a few minutes at the beginning of your road test to get the feel of it - the gear change or steering weight might not seem 'right' immediately. You should be confident enough to commence the test properly after a mile or two. Make sure you know which stalk operates the indicators and which one works the wipers!
• Too light or too heavy?
  The first thing you are likely to notice is the weighting of the controls, particularly if they are different to what you are used to. The steering, pedals and gear lever all vary from car to car. Are they too light or too heavy for your taste?
• Power steering
  If the car doesn't have power steering it may feel very heavy at low speeds or when parking. It may be better to go for a model equipped with power assisted steering (PAS).
• Changing gears
  On a manual car the sensitivity of the clutch is usually another thing that is immediately apparent - which is why drivers often immediately stall a car that's new to them. How much or how little effort does it require; and is the biting point too high or too low?

  Does the gear lever slot in and out of ratios easily and smoothly? The lever should fall easily to hand and the throws between gears should not be unnecessarily long.

  With an automatic transmission pay attention to how smoothly it changes gear. Are the changes almost undetectable, or does it lurch or hesitate between gears?

• Brakes
  Braking response should be reassuring, firm but progressive. Some modern braking systems are over-sensitive and take some getting used to. Avoid brake pedals that feel spongy or which require a lot of effort to stop the car.

  If the car is equipped with anti-lock brakes give them a try on a clear empty road. The brakes should not lock and you should still be able to steer accurately during an emergency stop.

  And while we're down in the footwell, is there enough space for your feet, and is there room beside the clutch to rest your left foot when cruising?

• Other controls
  Try out the heater, air conditioning, the radio/stereo/CD player, and the electric windows, mirrors, sunroof etc. Ideally, everything should be within comfortable reach, easy to use, and not distract you while driving.

  Does the steering wheel obstruct your view of the instrument display? Do sunlight or reflections make it hard to read the instruments, or see clearly through the windscreen?

• Copy of dealer's pre-delivery inspection form
• Car manual and service book
• Road tax disc
• Completed invoice
• Spare wheel and tools
• All lights, including interior, work
• All indicators work
• All electric windows work
• All door locks work
• Alarm works
• Windscreen wipers work
• Audio system works
• Bodywork is free of dents and scratches
• Wheels/wheel trims are undamaged
• Interior trim, including seats, are undamaged
• Windows and windscreen are undamaged

Buying a new car can be an exciting prospect that most of us will experience at least once in our lifetime. It is important to do your homework, have in your mind exactly the types of car you are looking for, and try to stick to it. Also work out a budget that you can realistically afford without taking out hefty loans if possible. Be prepared for your new car to depreciate in value almost the moment that you drive it off the showroom forecourt. Remember once you've done all the groundwork all that awaits is that shiny new car eager to hit the open road!

When considering the purchase of a new car you will need to carry out research to ensure that you get the most suitable and competitive deal available.
It is worthwhile researching all the loans on offer to you whether they be from the dealership or from a finance company. Web sites that may be of use include:

• Free Online Car Insurance Quote
• Car Loans
• Auto Trader
• Parkers