Buy a damaged car
You can save money by buying and repairing a crashed or stolen and recovered car. There are now strict rules to prevent the real basket cases from reappearing (listed as category A and B), but category C and D cars can be repaired. All 'cat' cars have had an insurance claim made on them, but those judged cat D are less serious and don't need a Vehicle Identity Check (VIC) before returning them to the road. Best places to buy are auctioneers like www.bluecycle.com, avoiding private sellers on eBay. It's a colossal gamble because it's so difficult to ascertain the cost of repairs until you've bought the car, but because insurance companies often just give a cursory inspection, you could strike lucky.
Buy a Japanese import
Buying up Japan's second-hand cars has long been seen as a way to save on the equivalent version over here. By far the most popular categories to be imported - usually by a specialist dealer - are sports, 4x4s and people carriers, with the latter two taking advantage of Japan's early adoption of diesels. Fresh imports aren't quite so financially enticing due to the rising value of the yen and the country's late-90s U-turn on diesels, but imports on their second or third UK owners can still be cheaper than the official equivalent. Mazda Eunos roadsters are identical to MX-5s but can offer better kit for slightly less money, as do Toyota Lucidas and Estimas compared to Brit-spec Previas.
Haggle by pointing out faults
A good way to lower the price of a used car sold privately is to point out faults. This has to tread a fine line between identifying future problem areas and criticising the seller's car and pricing, but mentioning that the rear tyres are down to their last 2mm of tread is fair comment. The imminent tyre bill will be on your tab, so an optimistic price will need adjusting to reflect that. If it's an eBay buy, scrutinise the description carefully. If you spot a fault not revealed online, you're within your rights to haggle your winning bid down.
Don't bother with independent dealer finance
If you're obtaining your loan through a middleman it stands to reason it'll be more expensive. A trader will get commission from the finance company for any loan he sells - money that will be factored into the cost of the loan. Loans offered from franchised dealers will be more competitive for a number of reasons, but the dealer will still be rewarded for selling it. Best go straight to the black horse's mouth (or whatever bank you're with).
Buy a very high mileage car
A good way to afford a better car is to choose one with more than 100,000 miles on the clock. Once again it's cost-cutting for gamblers because the danger on extremely high milers is that something expensive like the gearbox could conk out. It's a truism to say Japanese cars are a better bet here, but mostly they live up to the cliché. Car price experts CAP reckon a five-year-old Toyota Land Cruiser diesel is worth £12,400 at 90,000 miles, but £10,000 at 140,000 miles. A full service history is a must.
Buy a very low mileage car
Pampered older cars with precious few miles on the clock can make a great bargain alternative to a newer car, especially if you're just looking for a runabout. Anything approaching classic status will be expensive, but eBay especially often turns up garaged family cars from the 1980s with little appeal beyond their condition and cheapness. A £1500, 18,000-mile Vauxhall Cavalier Mk2 with service history might not set the heart afire, but as long it's been used fairly regularly, it will give budget motoring.
Factor in depreciation
You want the former owner to take the worse hit of depreciation, leaving you with a manageable decline in value. Buy used and that's a dead cert, simply because the worst period in a car's life is the first year after leaving the showroom. Values can drop by up to 50%, before levelling out on year two. To take a car at random, the Saab 9-3 diesel Sportwagon loses as much in its first year as it does in the subsequent four years. Under a government hell-bent on taxing us into choosing small, economical cars, it's a safe bet to say these will hold their value better.
