Five tips when buying a used car

Buying a second hand car can be a minefield, so make sure you check out these tips first.

With news from the government that a further £100m of funding is to be ploughed into its Car Scrappage scheme, more of us than ever seem keen to trade in our eligible vehicles to claim £2,000 off a new car or van.

But is a new vehicle best for everyone? When you realise that simply driving a shiny new car off the forecourt can strip thousands off its value, you may think differently.

Indeed, many people (myself included) would far rather buy a three years old plus vehicle, safe in the knowledge that in most cases we've avoided the worst of its depreciation.

Used car minefield

But of course, buying a used car has its own pitfalls. Not only are you likely to have missed out on the security of the manufacturer's warranty, you have all the usual risks when buying second-hand.

So if you're in the market to buy a used car, here are some tips to help:

1. What do you need it for?

Sounds obvious, but it's worth considering why, and what you need a new car for.

While a shiny, sporty number may appeal the most, if you have a child, plan to have kids or need to ferry other people's children around, you'll need a car that fits the bill.

Safety is a high priority and the Euro NCAP site can tell you which models performed best in its crash testing.

Child car seats

Test your car seats in the vehicles you consider. Every car is different so you could find the seat belts simply not long enough to strap your child's seat in securely.

Does the car have Isofix? If you have two or more kids in car seats, make sure they can all fit in together. And don't forget that kids grow - so test out the next stage car seat, too.

Prams/Pushchairs

Make sure your pram/pushchair will fit in the boot (and that you can also carry luggage, if required).

But in the same way it's not worth choosing a house around whether or not your fridge will fit, don't rule out the perfect car because your pram/car seat won't fit - in some cases it could be worth buying new ones. A Maclaren style pushchair will fit into all but the smallest car boots, for example, and seats can differ in size and fit.

And if you'll ever have to put a car seat in the front of the car, make sure you can easily and securely turn off the airbag as required.

If you have a dog, make sure it can be carried safely (you could even consider a pet seat belt).

2. How much will it cost to run?

Once you've nailed what you need, consider the running costs of suitable vehicles. Tax is charged according to CO2 emissions - find out the vehicle's tax band here. Call your insurance company to find out how much it will cost to insure.

Less popular (and larger) cars tend to cost more to service (and for parts) so check with your local garage. It's also worth finding out how often it will need servicing (this can vary between 9,000 miles and 18,000 for some models).

And if you tend to do longer journeys diesel can prove much more economical than petrol (although diesel models are often more expensive).

3. Search

Once you know what you want it's time to start looking.

Get an idea of how much you should pay from Parkers or What Car? Then check out sites such as Autotrader, local garages and Gumtree. See what is available and be prepared to be patient.

Check for the specification (engine size, air conditioning etc.) you require and whether it has a full service history, or is still under warranty.

If you're considering buying from an auction, check out these tips. And be very careful if considering an online purchase from sites such as eBay - print all details, check the small print carefully and try and view the car before bidding.

4. Viewing

Be sure to see the vehicle in daylight, ideally with a friend.

If it's a private seller, do so at his/her home rather than meeting up somewhere. Ask to see the V5c document and check that the name, address and Vehicle Identification Number (VIN) on the car are correct.

Examine the vehicle thoroughly inside and out, check the electrics and follow these tips from the AA. Does the mileage match the condition? Does it look the same age inside and out?

If you're properly insured take a test drive. Check it starts without problems, listen for strange noises, feel for steering that pulls, check the brakes and that gear changes are smooth and watch for smoke. Remember you're driving an empty car - will the engine size be sufficient when fully loaded?

And feel free to ask lots of questions - it should be quite clear if a private seller really owns the car (or is a dealer in disguise).

5. Buying

Finally, if everything looks satisfactory, you'll need to decide if you want it. If you do, it's worth paying £25 for an HPI check to ensure there is no finance owing on it. And for peace of mind you could pay for an independent inspection from the RAC or AA.

Cash is obviously king and will give you the greatest haggling power. However, you can find out some alternative ways to cover the costs in this article.

Ask the seller how much he's hoping to get for the car - you may be surprised at his honesty. If buying from a dealer it can be worth finding out how much he will part exchange your current vehicle for (although you'll probably find you can sell for more privately).

Decide how much you're prepared to pay and start negotiating. And make sure you get a receipt!

So there you have it - a few tips to bear in mind when buying a used car. You should also check out the tips in our goal on buying a car for less, while if you have tips of your own be sure to share them below or in the goal itself!

More: 5 ways to slash the cost of your car insurance |Seven top ways to pay for a new car