Whether you are shopping for a new second hand car, or selling your own, how do you work out a market related price?

The main factors that affect price are the year of manufacture, mileage, and condition. But there is more to setting a price than these three factors. Here are some useful tips on how to get the right price for a second hand car.

For business or pleasure

Usage is something to take into consideration. Is the car in question a company car that has been driven long distances on a daily basis. Or, has it been used as a runabout.

Ex-fleet cars usually clock-up high mileage and are for sale at a good price. Another advantage of buying an ex-fleet car is that they could have been looked after and serviced by the business and should come with a good service history from a reliable garage.

Ex-fleet cars might have the right price but experts recommend that used cars less than three years old with an annual mileage between 10,000 and 15,000 miles, are the best buys.

The cost of depreciation

Depreciation affects all cars whether they are brand new or second hand. In terms of depreciation, used cars are a cost effective purchase if you think in terms of resale value. The difference between the price of a brand new car and a second hand car is greater than between a second hand car that is resold.

Costly faults

You never know what faults a second hand car is hiding. The condition of second hand cars varies from one to the next. To be on the safe side, The Citizens Advice Bureau (CAB) recommend you take action as fast as possible if you discover a hidden fault. If you use the car for a few days/weeks before mentioning the fault, it will be more difficult to prove.

Do your homework before you buy

Consumer Direct, a government-funded consumer advice organisation, offers the following advice:

• Check car magazines and price guides

• Shop around

• Take someone with you who knows about cars

• Or, pay for an independent inspection by a professional mechanic

• If buying from a dealer, look for a trade association sign

• Test-drive the vehicle before you buy

• Don’t be afraid to haggle

• Get a quote for car insurance so you know exactly how much it will cost. Most car insurance companies offer car insurance quotes online.

Buy online

Do some research by searching online car sites. There are hundreds of cars online to help give you an idea of the price range of different models. Plus, you can find prices for car models based on what year they were manufactured.

The sites listed below are a great place to start.

1. autobytel.co.uk

2. autofinder.co.uk

3. autosonthe.net

4. autotrader.co.uk

5. autoweb.co.uk

6. cardata.co.uk

7. exchangeandmart.co.uk

8. fish4.co.uk/cars/location

9. loot.com/motoring

10. motors.co.uk

Once you have done your homework and found the right car for you, make sure you get adequate car insurance.