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Buying a used car

Buying a used car can be a great way of saving money – find out how to protect yourself and avoid common pitfalls

Uswitch guide to buying a used car

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What to look for when buying a used car

Buying a car - whether it’s new, from a used car dealer or a private seller – is one of the most expensive things you will ever buy, next to buying a home.

Buying a used car is fraught with pitfalls, but if you do your research it can also save you thousands of pounds. 

The main problems with used cars are:

  • it can be difficult to ensure you know what you're getting 

  • it can be difficult to know what the car is worth 

When buying a used car you may also want to shop around for car insurance before you go ahead and buy it; a hefty insurance bill could wipe out any savings you hope to make.

Your rights when buying a used car

A study by the Office of Fair Trading found consumers buying a used car lose an average of £425 each – a total of £85m a year – through having to fix unresolved faults that are the dealers' obligation to correct.

  • according to Citizen’s Advice used car sales are still one of the biggest areas of consumer complaint across the UK

  • there are precautions, preparation and checks that you can do before buying a used car

  • not only can they help you bag a bargain, it also means you don’t end up buying a car that has been badly damaged, stolen or illegally altered

  • you still have legal rights even if you don’t do the proper checks; you may have a legal right to a repair, the cost of a repair, or some or all of your money back

Your rights when buying a used car from a dealer 

A used car dealer is a business specialising in selling cars. 

When buying from a dealer look for:

  • an established dealer with a good reputation

  • a dealer that is a member of trade association such as the Retail Motor Industry Federation

  • a dealer who follow the The Motor Ombudsman's code of practice 

  • and has their cars inspected by an independent engineer or motoring organisation

Your rights when buying a used car privately

This is one of the riskiest ways of buying a used car. 

  • you don’t have as much legal protection as buying the car from a dealer

  • the car must match the seller’s description; it must be road worthy and the seller must have the legal right to sell it to you

  • you are responsible for making sure the car is “fit for purpose” before you buy it

  • some unscrupulous used car dealers pretend to be private owners to offload faulty or stolen cars

Your rights when buying a used car from an auction

Auctions don’t offer the same legal protection as buying from a dealer so make sure you know the auction house’s terms and conditions of business.

1. Make sure you check the used car’s history

Wherever you buy your used car you will need to do some simple checks to reduce your chances of ending up with a car that’s being sold illegally or has had major repairs. 

A private history check - also known as a ‘data check’ will cost up to £20.

A private history check will tell you:

  • the car has been reported stolen

  • the seller still owes money on the car; which means you may end up in debt if you buy the car

  • the car has previously been in a serious accident

  • the car is showing the correct mileage

  • the car has been written off, repaired and then returned to the road

You can get a car history check by searching online for websites that check vehicle details.

2. Check your used car’s details with the DVLA

To do this you will need the following information:

  • registration number (on the number plate)

  • MOT test number

  • mileage

  • make and model

You can go online and used the DVLA’s free online vehicle information checker 

The information the DVLA holds should match the dealer’s/seller’s information.

Used cars and MOTs

Vehicles need regular MOT tests to make sure they are roadworthy you can check the MOT history of a car for free on Gov.uk.

If there are any gaps in the MOT history you may want to think twice about going ahead with any purchase. Remember though that a car might not have needed an MOT if it was unused or registered off road - statutory off road notification or SORN.

3. Check your used car’s logbook

The car’s V5C registration document gives details of the registered keeper and all the car’s previous keepers.

  • this is a red document issued by the Driver and Vehicle Licensing Agency (DVLA) 

  • if the log book - V5C registration certificate - doesn’t match the car on the DVLA records you need to report this to the DVLA

4. Check your used car’s Vehicle Identification Number

When viewing a used car, look for its VIN (Vehicle Identification Number), which can usually be found at the base of the windscreen, under the bonnet, and stamped into the framework under the carpet by the driver’s seat. 

  • make sure the VIN matches the VIN found in the V5C registration document

5. Work out a used car’s value 

Do your research by looking at price guides and comparing similar used cars for sale online and in car magazines.

Arrange car viewings for the day, and at the seller’s home if possible. Try not to go when it’s dark or raining as this can hide defects, such as dents and scratches.

Check beneath the car and under the bonnet for rust and any signs that the car’s been in an accident.

When not to buy a used car 

A simple inspection of a used car can help you pinpoint any obvious issues that means you should avoid buying it.

For example:

  • the locks are different from one another, as changed locks could indicate that the car’s been broken into 

  • signs of forced entry  - make sure all the windows, including any sunroof, open and close normally

  • mileage – if it looks too low for the age and appearance of the car the odometer may have been tampered with, this is called known as ‘clocking’

Cut-and-shuts

A ‘cut-and-shut’ is where pieces of two or more vehicles are welded together. This is illegal, but you need to watch out for this. You can check by pulling up carpets and trims for signs of hidden welds and look at paintwork that doesn’t match.

  • A full history check before buying a used car will show if the car’s been stolen or written-off – a cut-and-shut could be both.

6. Take a test drive of the used car

Always view the car in dry weather in the daylight. If you are buying from a private seller do so from their home so you have their address.

  • drive for at least 15 minutes on different types of road and try and drive for an hour if you can.

  • you may want to get an independent report this will give you detailed information about the car’s condition and will cost around £100 to £200

  • The Motor Ombudsman will have advice on where to get an independent report in your area. The Motor Ombudsman is a government-backed self-regulatory body for the motoring industry. 

Insuring a used car

Make sure you are insured to drive the car, you may be insured via your own car insurance but check with your insurance company first.

If you don’t have insurance, a trader or private seller’s insurance might cover you - you’ll need to ask them.

  • you may want to search quotes for temporary car insurance

  • don’t test drive a car if you’re not insured as you’ll be liable for any damage you cause and you could get points on your licence

Get a car insurance quote

See a range of car insurance quotes in just a few minutes when you compare with Uswitch

7. Your rights when paying for your used car

When agreeing on a price for your used car, don’t be afraid to haggle. The Money Advice Service has useful guidance on negotiating when buying a car.

Documents you need when buying a used car

Make sure you get the original (not a photocopy) of:

  • the log book (the V5C registration certificate)

  • the valid MOT test document

Never buy a car without the log book.

You’ll need to pay vehicle tax as soon as you buy the car as the seller cannot transfer any tax they have paid

The cooling off period when buying a used car

The phrase ‘cooling-off period’ is the period of time you have to change your mind about something you’ve purchased from a distance. 

  • The statutory minimum a seller must offer you is 14 days. If you have bought your car from a private seller there is no cooling off period if you have bought it in person.

  • If you have bought your car from a used car dealer, the cooling off period will only apply if you have bought it via finance, as financial products – such as loans – have to include a 14-day cooling off period.

  • The cooling off period only applies if the car is roadworthy and you have changed your mind.

8. How to pay for your used car 

Paying with cash

Paying with cash is the cheapest way to pay for a used car as there are no extra fees or interest and often you get a discount for paying cash.

But if something goes wrong with the car you won’t have the protection that some credit arrangements offer

Paying by debit or credit card

You might have protection if your card provider has a chargeback scheme. Paying via credit card means you can be flexible with making larger payments when you can afford them

You’ll get protection for goods costing between £100 and £30,000, even if you only paid for a small part of the cost on credit card (this is called ‘section 75’ protection)

But you have to pay interest, making this more expensive than paying with cash

Paying using an electronic transfer

Transferring the money using a bank transfer can be more preferable to carrying large amounts of cash.

You can pay with a CHAPS payment but there will be a charge – and your bank may have an upper limit on the amount you can transfer.

Paying using finance arranged by a trader

You will have to pay interest, but you might have extra protection because not only do you get protection through the dealer, you also get protection via the finance company.

Buying a car through hire purchase

This is another form of loan but means you don’t own the car until the last payment is made and the car can be repossessed if you can’t keep up the payments.

How to save on car insurance 

Used cars can be much cheaper to insure than brand new cars,  but there are other things you can do to reduce the cost of your car insurance

There are some things you can do that may reduce the cost of your car insurance:

  • Having a black box fitted

  • Lowering your mileage

  • Parking in a private driveway or garage

  • Considering a multi-car insurance policy

  • Choosing a car from a low insurance group

Get a car insurance quote

See a range of car insurance quotes in just a few minutes when you compare with Uswitch

Black box car insurance

Having a black box fitted means your driver behaviour is monitored. The telematics box reports on how you accelerate, brake and negotiate sharp bends as well as what time your drive and on what sorts of roads. 

The data is analysed, and if your scores are positive, your car insurance may be discounted over time.

Lowering mileage 

If you drive fewer miles in a year this could result in a lower car insurance premium.

Parking in a private driveway

Parking in a private driveway or garage can also attract a discount. Car insurers may take into account where you park, depending where you live.

A multi car insurance policy

If your driveway is cluttered with cars, you may want to consider a multi car insurance policy

Choosing a car from a lower insurance group

The lower the value of the car and the cheaper it is to repair, the less car insurance you may have to pay. 

Get a car insurance quote

See a range of car insurance quotes in just a few minutes when you compare with Uswitch