The UK economy may be bleak but that has not stopped consumers from purchasing new cars. Whether they have good or bad credit, car finance is being used to put them in a new or used vehicle.

Drivers should do their homework before taking out car loans for used vehicles and this research should focus on the car as well as the financing.

A leading credit reporting company recently released a report indicating that about one-third of all used vehicles have a hidden history. Among the buried information are stolen markers, write-offs, and outstanding car finance.

Many car buyers do not realize this until too late, as 80 percent who bought a used car for over £10,000 do not check vehicle history before making a purchase.

According to the study, drivers purchasing more inexpensive cars were more likely to check its history. This is a smart move because if a vehicle has outstanding car loans, is stolen, or has unpaid speeding tickets, its new owner may be held liable.

The individual could lose all money paid and may even lose the vehicle.

A spokesperson for the company that conducted the report noted that risk is involved when purchasing a car. Unfortunately, not all car buyers are aware of the risks and fail to take precautions.

With a one in three chance of purchasing a used car that has a hidden past, consumers should always verify the VIN and review the history of the auto.

Drivers who put forth this extra effort can rest assured that no one will be repossessing the vehicle and they will not be on the hook for unexpected expenses. They know the car belongs to the seller and are comfortable entering a purchasing agreement.

By selecting a reliable vehicle with a clean track record, they should get many years of use from their investment.

If the current vehicle dies and buying a replacement outright is not possible, car finance gets drivers back on the road in a new ride. When considering vehicles, previously owned models may be the best choice.

New cars depreciate once driven off the dealer lot, while used cars are slower to lose value. Used autos are also cheaper, allowing drivers to take smaller car loans.

Before purchasing a used vehicle, inspect the bodywork for chipped paint or signs of rust. Make sure the tires are in good shape and that there are no door, window, or sunroof leaks. Check all the electronics including the horn and lights.

Make sure all seat belts work properly, which requires a check of the locking feature.

Look for visual indicators that the car has been involved in an accident. Engine welding, repair work on the body, difficulty shutting the boot, and different colored or patchy panels are some signs.

Verify that the VIN on the vehicle matches the number listed on the car registration certificate. If it does not, the car may have been stolen, so pass on it.

Test-drive the vehicle to assess its handling. Listen for unusual engine noises or squeaky brakes. Press the clutch and listen for any change in engine sounds. This could indicate an issue with the clutch and gear.

Make sure the vehicle does not pull to either side during braking, that gears shift smoothly, and steering does not shake.

A car that passes this inspection is suitable for purchase. The next step is to review available car loans to find one with a low interest rate and affordable repayment term. An online loan calculator helps drivers determine the cost of good or bad credit car finance.

Online lenders enable drivers to secure a loan without leaving home.

As the stock market takes them on a roller coaster, many investors are looking into car loans. Why, you ask? They are supplementing their investment portfolio with classic cars. In 2011, average prices of classic cars outpaced returns on equities.

Despite record increases in gold prices, classic automobiles even managed to outperform this popular precious metal.

According to Historic Automobile Group International (HAGI) data, prices in some classic car market segments increased by 20 percent during 2011, while gold prices rose only ten percent. Property prices are declining, equity returns are poor, and returns on savings are almost non-existent.

This has led to a renewed focus on alternative investments like classic automobiles.

When the economy is unstable, investors flock to physical assets with an intrinsic value, especially those available in limited supply. This has led to an increase in antiques, gold, art, rare stamps, and classic cars.

Collectors and hobbyists purchase many of these alternative investments but even traditional investors find their pulse quickening at the prospect of owning a Daimler.

The amount of car finance needed to purchase a classic automobile is often determined by fashion trends. In addition, investors should be aware of depreciation rates and that ownership of a classic automobile does not provide an income stream.

Scratches and dents that appear on the car will decrease its value, while money is required for maintenance and repairs.

Despite this, classic cars can still be a smart way to diversify the portfolio. According to HAGI index founder Dietrich Hatlapa, these automobiles move independent of other investments.

During the past three decades, the HAGI Top index, which measures rare and expensive collectible classic car performance, increased 30 times. This equates to a compounded annual growth rate of over 12 percent.

Gold increased only 2.17 percent each year during the same period.

Many car buyers select a new car because it is more reliable than a used one. Assuming that all new vehicles are more reliable than older models is a mistake.

A recent study by insurance company Warranty Direct revealed some very surprising details regarding the reliability and repair charges for new versus used vehicles.

Results of the research indicated that older autos are less expensive to repair and less likely to break down in the first place. An older vehicle has ten percent less chance of breaking down than a more technologically advanced newer model.

People should consider this before securing car finance for a new automobile. Choosing a used model may be a better bet over the long-term.

Older models of the Audi A4, Ford Fiesta, Vauxhall Zafira, and those in the BMW 3-series are particularly appealing. Warranty Direct reported that the average repair charge for a 1995 to 2002 Ford Fiesta was half of that for models built from 2002 to 2008. Nearly half of all new Zafiras have electrical issues, twice the number of older models experiencing this issue.

While only ten percent of Audi A4s produced from 2000 to 2005 experience engine issues, 33 percent of those built from 2005 to 2009 have these problems.

One of the scariest statistics revealed by the study pertains to the BMW 3-series. A recent model is three times more likely to have a braking system issue than a model produced in earlier years.

This information indicates that while purchasing a new car might be the most appealing option, it is not always a cost-effective choice.

Shopping for a reliable used vehicle and comparing car loans to find the lowest interest rate may save money. Many used cars still have years of use remaining and have lower repair costs during the ownership period.

Many commuters in the UK are choosing a car over the train. Though they once embraced public transportation, they now realize that it is both time-consuming and expensive.

They are now carpooling with strangers and loving it. Even those who enter the situation unwillingly are realizing that carpooling is quite pleasant.

Using cash or car finance to purchase a vehicle and posting an ad on a car-sharing website it all it takes. Many people sharing rides enjoy the shorter commuting time and opportunity to meet new people.

Drivers post their route and charge passengers based on the price of gasoline. Those sharing the ride save substantially in terms of commuting costs. It is a win-win situation for everyone.

As an example of the savings, one man commutes from Cambridge to London and currently charges his three passengers £12.50 each per day.

A peak-time train fare between Cambridge and London costs £42. To avoid registering as a business, which increases insurance costs, many drivers do not profit from the situation.

They do it simply to keep their commuting expenses low and they enjoy the company during the ride.

The UK is not the only area where car sharing has become popular. Commuters in Germany are gradually embracing the practice. Younger generations in particular find carpooling appealing.

Some people fear the risks of meeting others considered unpleasant but this usually does not happen. Instead, drivers put their car loans to good use by helping friendly people get to and from work.

BlablaCar is a carpooling website in the UK, Spain, and France. Co-founder Nicolas Brusson reports that the company had almost no members in 2008 but by 2011, 1.5 million people had joined.

Rising European travel and petrol costs are the main reasons many people car share. Mr. Brusson expects the number of European carpoolers to grow in coming years.

Diesel automobiles feature better fuel economy than petrol autos, resulting in many UK diesel car finance deals each year.

However, UK car buyers may want to reconsider taking out car loans for diesel automobiles because the price of this fuel is expected to soar.

A few days ago, the largest independent oil refinery in Britain, the Coryton facility in Essex, entered administration.

Coryton supplies approximately 20 percent of fuel used within southeastern England. Parent company Petroplus, based in Switzerland, declared insolvency, bringing deliveries to a standstill.

The average diesel price is 142.21 pence/liter, just one 1 pence/liter shy of the May 2011 record of 143.04. Both automobile groups and energy analysts fear that the shutdown of Coryton will lead diesel fuel prices to skyrocket.

An AA spokesperson stated that the motoring agency expects the price of diesel to exceed its previous high. Energy Quote lead analyst Damien Cox predicted that diesel prices will be impacted over the short-term.

He disagreed with media reports of potential fuel shortages, saying that though short-term supply may be affected, contingency plans should cause supply to be normal over the long-term.

The shrinking British economy may be bad in general but it could be good for diesel car owners. Mr. Cox said that the restricted economy has decreased diesel fuel demand.

Therefore, even near-term restrictions in the fuel supply will not be felt as severely. Drivers who own diesel cars will still be able to fill up- it will just cost them more money.

Consumers in the market for a diesel car may want to wait a bit. Car loans for diesel autos may be more attractive after a predicted temporary spike in diesel fuel costs subsides.

In the meantime, they can shop for the best good or bad credit car finance deals and get pre-approved to streamline the purchasing process.

Citroen just added a new luxury vehicle to its UK lineup and the buzz has already started. The Ultra Prestige DS3 is considered a luxury vehicle and after viewing its list of features, one can understand why.

It combines sophisticated styling with premium features and the distinctive design of the Citroen DS line. There will surely be many car loans taken for this vehicle in the near future.

The Ultra Prestige DS3 will be offered with either a THP 155 fuel engine or a carbon dioxide and fuel-efficient e-HDI 110 diesel engine. The latter is an ideal candidate for commercial car finance for fleet vehicles.

It offers CO2 emissions as low as 99g per kilometer and 74.4 miles per gallon fuel economy.

Buyers have their choice of polar white or thorium gray interior. Front seat upholstery features a watchstrap design in club leather, with a unique crescendo viagra effect inspired by the fashion world. the leather color gradually changes from white to black down the front seats.

The dashboard of the polar white interior is covered in white leather, which is also used on the door panels and center armrest, and dashboard dials are also white.

Side and rear windows are dark tinted and the vehicle features charcoal gray 17-inch alloy wheels and a sporty spoiler. The black roof of this car features an Ultra Prestige graphic that changes from matte to gloss with lighting changes.

A dark chrome signature package adds black door mirrors, dark chrome side trim, and front grill and fog light surrounds.

This special edition DS3 super-mini is the ultimate in small car luxury and buyers should expect car loans of at least £21,000. Vehicles like this are designed to be noticed, whether they are tooling around town or zipping down the highway.

Those who drive frequently should consider the fuel and emission-friendly diesel model.

The UK Department for Transport began offering plug-in car grants one year ago. Drivers who use car loans or cash to purchase a qualified ultra-low emission vehicle are entitled to a grant equivalent to 25 percent of the vehicle cost, to a maximum of £5,000.

The program was recently extended to cover vans, great news for commercial enterprises.

Purchasers of electric vans are now entitled to a 20 percent discount of the vehicle price, to a maximum of £8,000. The discount applies whether cash or car finance is used to buy the vehicle. This announcement was made by Transport Minister Norman Barker on January 17. The government pledged to support the program for the duration of this Parliament.

A total of £250 million has been earmarked for this program, which has not quickly caught on with car buyers. According to the Department of Transport, only 1,052 vehicle buyers used the grants during 2011, equating to just £5.25 million.

The assumption is that the majority of electric car buyers are businesses.

Therefore, extending the grants to commercial automobiles should increase utilization this year.

Mr. Baker called the recent program expansion “great news for businesses.” He encouraged commercial van buyers to go electric due to the lower operating expenses for this type of vehicle. The government has yet to decide which electric vans will qualify for the program.

Criteria regarding emissions, safety, and range will be used to determine eligibility.

In terms of cars, plug-in hybrid, electric, and hydrogen-fuelled autos with tailpipe emissions not exceeding 75 C02/km are potentially eligible for the grant. Included in the government-approved list of eligible cars are the Nissan Leaf, Mitsubishi i-MiEV, and Peugeot iON.

The Chevrolet Volt, Vauxhall Ampera, and Toyota Prius Plug-in Hybrid were added at the beginning of this year and the Renault Fluence ZE will join the list when it becomes available in March.

Most drivers hope to secure car loans for vehicles that consume a minimal amount of fuel. Research reveals that friction is responsible for automobile fuel consumption of 33 percent or more. By reducing friction within cars, automakers improve the fuel economy of their vehicles, providing consumers with more bang for their buck.

The study, which was conducted by VTT Technical Research Center and Argonne National Laboratory, noted that it should be possible to decrease friction by as much as 80 percent in the next five years. This would result in an 18 percent or more decrease in fuel consumption for a typical car.

New developments within 15 to 25 years should result in a 61 percent improvement in vehicle efficiency.

There are 612 million vehicles on roadways worldwide, according to the study. Each year, the average driver travels approximately 13,000 kilometers. In the process, 340 liters of fuel are consumed just to overcome friction. This costs drivers over €510 in fuel annually.

The statistics go on to reveal that for a basic internal combustion engine, 33 percent of fuel consumed is attributed to exhaust, and 29 percent goes toward cooling.

Thirty-eight percent of the fuel consumed is put toward mechanical energy. As a result of friction, a large portion of this is lost. All this fuel waste is a cause for concern. Drivers can do something about this before additional friction-reducing technologies are implemented.

They can use their car finance to purchase an electric vehicle.

An electric motor has half the friction loss of a traditional internal combustion engine. Electric cars currently cost more than their conventional counterparts do but the price gap is steadily decreasing. Driving range is an ongoing concern with these vehicles but that is also improving as researchers uncover new technologies that use electricity more efficiently.

Even though Volkswagen AG is the largest automaker in Europe, it is still attempting to increase customer loyalty. It plans to offer ten percent more Audi, Skoda, Seat, and VW car loans and leases within the next four years. According to company financial unit leader Frank Witter, finance customers exhibit more loyalty.

In 2011, the automaker leased or financed 30 percent of its vehicles. By 2015, this figure will increase to 40 percent, allowing VW to further penetrate European markets. Last year was a good one, with a 14 percent increase in global sales companywide.

Eleven percent growth in Germany and seven percent in the remainder of Western Europe were partially responsible.

Selling a vehicle on finance offers a time window to discuss new models with the customer. Thirty percent of VW-backed European cars are leased and 70 percent financed. At the end of 2011, Volkswagen Financial Services had a balance sheet of 90 billion euros, an increase from the June figure of 87.8 billion.

It plans to grow its customer deposit percentage from 25 to 33 percent.

Mr. Witter noted that VW is taking a slow approach to growth. The automaker does not plan to expand U.S. financing options for the Audi brand. It does not want to place quality and residual values at risk. Putting many incentives behind a car creates more off-lease value autos, which places additional pressure on vehicle residual values, he said.

Whether European car buyers qualify for car loans through VW or must find bad credit car finance, they will join the ranks of many other satisfied VW owners. VW hopes that the percentage of these happy drivers will only increase in the near future.

New versions of the Audi A6 and the Passat made this possible last year. We can only guess what is in store during the next few years.