Buying a used car? Our trade insider has revealed the top tips for buying a secondhand motor guaranteed to make your next purchase as trouble-free an experience as possible.
Here at Parkers, we get frequent feedback from many of our car-buying readers. Most have a great buying experience and the route to owning their dream car, for the majority is trouble free. Saying that, judging by our owners’ reviews, that experience can end up a headache.
So, we’ll try to give you, the potential buyer, some useful Parkers car buying advice and what you should look out for – hopefully avoiding some of those potential pitfalls and car buying scams.
Where to buy a used car from?
So, you have your beady eyes on some shiny new metal – what next? Let’s look at what buying from different outlets actually means.
Buying a used car from a main dealership
They represent the manufacturer and as such, offer all the thrills and experiences of a main dealer network. Cars will be normally prepped to a high standard and various checks (such as HPI and mechanical checks) performed. Any faults should have been rectified beforehand and you shouldn’t have any nasty surprises when buying the car. In theory – it should be trouble-free. Also your best bet for part exchanging a car.
On the flip-side, franchised dealers are normally more expensive than independents but many people feel much more comfortable in paying the extra outlay with that added reassurance. If things go wrong, you can normally get the dealer to rectify it.
Buying from an independent
Independents are generally a cheaper alternative to buying a car compared to a main dealer. Many independent dealers are experts with some specialists offering better facilities than main dealers. In particular, specialist car centres, those selling sports or classic cars for example, are often top in their field. Enthusiasts often use this type of network as the specialist knowledge is often unrivalled.
The independent network can lead to some unscrupulous individuals appearing (and disappearing) quickly from the scene. The sheepskin-coated 80’s ‘Arthur Daley’ character has mainly been banished from existence, but beware, there are still some shady undesirables who seem happy to take your hard-earned cash and make a quick exit in the process.
Buying from a supermarket
Top of the independent food chain is the Car Supermarket and just as it says on the tin, it’s like ‘Tesco’ for cars. Some supermarkets are hefty operations in their own right and many top ones (such as Motorpoint) have multiple outlets across the country. In other words, there’s loads of choice.
Here you’ll get the best prices in the sector. Supermarkets will price their stock very keenly and you’ll be seeing some of the lowest prices around. They’ll often have good stocks although trim-level choices may be limited. This means you can’t negotiate further money off. Chances are if it says £10,000 on the sticker – that’s the final price and expect to pay it.
Buying from an individual
The cheapest prices are usually found via private sellers. Only agree to see a car in the daylight and at the seller’s address, not some random pub car park. Make sure this address matches the V5C paperwork. Today, anyone can check online to see if the vehicle has an MoT.
Once you’ve found a car from a credible private source you’ll need to pay. Cash is the easiest but not always the safest idea. A bank transfer is probably much more secure.
When you’re happy, don’t forget to pester the seller to notify the DVLA that you are the new owner. This is essential and the responsibility of the seller.
Buying from an auction
Auctions are very tempting, especially for rarer used cars. Before heading out to an auction, or logging into one online, it’s worth asking about its policy on mechanical checks.
You’ll need to check what the fees are (and ensure you can afford them as well as the price of the car), ensure the vehicle has all of its documents, and organise transportation.
What happens if you are the seller – how to protect yourself
If you’re the seller and you’ve agreed with a buyer on a sale, then there’s a few pointers to observe in order to protect yourself.
Bank transfers are easy and normally immediate but beware of scammers. We’ve heard of so called ‘buyers’ showing the seller what looks to be a banking site/app from their own phone or device. This site is actually a ‘spoof’ and is not genuine.
What normally happens is that they go on to say that they have transferred money from their account to your account and they show you ‘proof’ of this on their app. However, when you check your account – there’s no money deposited. The excuse is that ‘it can take an hour or so‘ for it to show up and there’s nothing to worry about. They then insist it’s ok to take the car.
In reality, when they show you that the money has left their account, they are showing you a ‘spoof/fake account’ that they have designed to make it look like money has been paid to you. No money will ever leave their account as what you are viewing is just a scammers site. You’ll never receive any payment.
Our advice is to never hand over the keys or documents until you are totally sure that any promised money is actually in your account.
TOP ADVICE!! – Log into your account using your own device so you can be sure everything is legitimate. Don’t trust anyone else’s device [especially the buyer or his/her accomplices] as it could well be scam and they could all be working together.
If the money isn’t in your account within a few minutes, then there’s a high probability that there’s a scammer in action.
If in doubt, contact your bank to confirm a transfer has taken place before handing over the car.
What are your rights when buying a used car?
We can’t stress this enough. This is an area where you, the buyer, has a very powerful tool. If you purchase a car (or anything for that matter) using a credit card, spending between £100 and £30,000 – then you are covered by Section 75 of the Consumer Credit Act.
This is the consumer’s champion and the ace-card up your sleeve should things go pear-shaped. By purchasing on the card, you are covered (normally by the card company) for any breach of contract or misrepresentation by a trader. This is particularly useful if the retailer has ceased trading or has disappeared off the scene and won’t respond to your attempts to contact. There is no time limit in making a claim, but normally it’s no longer than six years. You can even claim if your credit card account has since closed.
Unfortunately, you haven’t got the same protection if you use a debit card, although banks offer a Chargeback option. This works by reversing a transaction. It is not enshrined in law but most banks participate in the scheme. Chargeback tends to be useful for smaller purchases under £100.
We wouldn’t recommend purchasing a car using a debit card – even if you do have the funding. Pay on credit card and repay your card back from your debit card – doing it this way avoids interest charges.
What to do if you buy a lemon
If you have just purchased a used car and it has major faults then you could get it repaired by whoever sold you the vehicle – or you could get your money back. However, you can’t reject the car because you’ve changed your mind.
Under current legislation, consumers are covered by The Consumer Rights Act 2015 in that all products must be of satisfactory quality, fit for purpose and as described.
The act allows consumers to reject the car if you’ve owned it for less than 30 days and either claim a full refund or request the vehicle be repaired or replaced. After 30 days you can request the vehicle is either repaired or replaced free of charge. The dealer must be given the opportunity to do this. If, however, the work is unsuccessful – you are entitled to a refund. The dealer can deduct a ‘fair use’ amount after the first 30 days.
If there’s a major issue within the first six months of ownership, the dealer should accept there was an issue and offer a refund/partial refund. If they don’t accept this is the case – they must prove it. After the six-month period, the onus moves to you the owner and it will be up to you to prove there was a problem.
Some dealers and retailers are members of ‘The Motor Ombudsman’ [TMO]. Accredited members agree to abide by a minimum set of rules and standards. If the dealer in question is a member and you can’t come to an agreement on the issue, you may ask the Ombudsman to look at your case.
You can contact the Ombudsman online via their dispute resolution service.
Most buyers experience a trouble-free transaction, but you can report fraud by contacting ‘Action Fraud‘
Options – Some options are not worth what you think they are
Factory fitted options can cause quite a debate in used-car circles, especially with consumers. A general misconception is just because an option costs [for example £1000], then it must add lots of additional resale value to a vehicle. In many cases, ‘Options‘ don’t add any additional value but can make a vehicle easier to sell.
We look at the picture based on the experience you’d expect to get when visiting a dealership and our used pricing data is based on trade options by industry valuations experts CAP/HPi. Parkers data will closely follow the market in this respect so you don’t get any unwelcome surprises when the dealer values your car.
It’s a known fact; traders only tend to favour limited options such as Metallic or Special Paintwork, Alloys, Sat Nav and Leather Interior upgrades. There are some specialist upgrades, for example Tesla’s ‘Enhanced Autopilot‘ and the ‘Full Self-Driving Capability‘ packages which can add a considerable amount to a used car value.
Traders often see consumers hyping the price of options. Remember, the option was chosen by the original buyer and it was their decision. The dealer won’t be interested that you [or any previous owner] has spent £1000 on an assist system or similar. He won’t recoup most of that spend but it may make the car easier to sell on.
He will of course hype the options when selling, but that’s a well known sales technique – however generally, second-hand vehicle options can’t command the large perceived monetary addition.
Mythbusting: car deals and dealers
❌ Myth: The more owners a vehicle has had, the lower the value of your car
❌ Myth: Dealers like being paid in cash and it can get you a cheaper deal
❌ Myth: Floor Mats add value. No, sorry – they don’t. They’re just floor mats!
✅ True: Convertibles are worth more around Spring time
✅ True: A tank of fuel adds value. Yes, it does. £100 worth of fuel is £100 in anyone’s money
✅ True: If a dealer’s car is cheap then it’s probably been around too long, and the dealer wants it gone
Buying a used car tips:
Follow these tips and you’re likely to get a better deal.
1. Work with the salesperson
…not against them. In the end, you BOTH want a deal.
2. Consider if you really need those extras
After-sales goodies such as extended warranties and GAP Insurance earn the salesman big bonuses. Do you really need them and if you do – could you get a cheaper alternative yourself?
3. Car finance: shop around
The dealer’s finance package again makes the salesperson big bonuses. Do your research on what’s best for you as repayments can vary vastly. It’s an open market so shop around.
4. Always purchase using a credit card
You’re covered by Section 75 of the Consumer Credit Act should things go wrong
5. Pay it off quickly!
If you pay by credit card, don’t forget to pay off the balance quickly [normally within that month] so you’re not hit with big interest charges.
