Guide to second-hand car buying

With a used car you never know what you’re getting as the car will have a history and you can’t always be certain what that history is. However, second-hand and nearly new cars can be excellent value for money and there are plenty of reputable sales out there, so it’s just a matter of being careful and doing thorough checks before you buy.

Some of the issues regarding the purchase of second-hand cars are that the age of the vehicle could have been falsified, the mileage could have been lowered, it could have been involved in a crash, or it could still have outstanding finance owing on it.

The safest place to look for a used car is a dealer franchise. The riskiest used car purchases, on the other hand, tend to be from private sellers.

Dealer franchises are large companies affiliated to a car manufacturer and are therefore the most reputable. They sell new cars made by the manufacturer as well as a range of used cars made by various manufacturers. Their checks on all the second-hand vehicles they sell tend to be rigorous (previous ownership, theft, accident history, insurance status and outstanding finance) and they’ll fix any problems or faults they find with it so that they can be sure it’s legal, safe and roadworthy when it reaches the forecourt. Customer service at the large franchised dealers is usually excellent, and they often provide extended warranties and other such peace-of-mind schemes at an extra charge. Also, if you’ve got an old car to sell, buying from a dealer franchise can be very convenient as you can trade in your old car in part exchange for the new one. This is much easier than trying to sell it privately (although you won’t get as much money for it as you would from a private sale).

However, the downside of dealer franchises is that they are rather costly in comparison to independent dealers or private sellers.

If you don’t want to spend much money on a car and are looking for something not too new, independent dealers can have some very good deals. They generally sell older vehicles. However, they don’t always offer the additional benefits that franchised dealers offer, such as warranties. Ask what’s included in the deal.

You’ll save the most money by purchasing a car from a private seller. However, you won’t have the same safeguards that you would have with a dealer, either franchised or independent – i.e. statutory consumer protection. However, private vendors unfortunately get a bad name because of a few rogue traders and criminals – the vast majority are legitimate and trustworthy. The only problem is knowing who is genuine and who isn’t – which you will need to judge for yourself by carrying out careful checks and by proceeding with caution rather than being too eager to make a hasty deal.

If you see a car that’s really cheap and too good to be true, then it probably is. Be suspicious and carry out thorough checks. Try to find out the following:

• Has it been stolen?
• Has it been in an accident?
• Is it an insurance write-off?
• Is it a complete vehicle, or is it a ‘cut and shut’ of various vehicles?
• Is there still finance owed against it?
• Is the mileage genuine?
• Does everything work?
• Is there a full MOT and service history and vehicle registration document?

Here are some telltale signs that a car isn’t all it’s cracked up to be:

• worn or scratched dashboard joins/screws
• uneven digit counters on the milometer
• different paint colour in the boot or under the upholstery
• worn foot pedals
• worn or frayed upholstery
• a very scratched bonnet
• mismatching chassis numbers on the registration document and the car
• crude welding on the inside of the car frame

Spend as much time as you need doing your own checks on the vehicle or even asking the RAC, AA or another independent motoring body to check it out. A genuine private seller will have no problem with this. And of course it goes without saying that you should take the car for a test drive.

If there’s anything at all that you think could be fishy about the vehicle or the trader, don’t get involved. It could be a very costly mistake – in terms of both your safety and your bank balance.

Another consideration is how you will finance your used car purchase. Even if you don't have the cash to hand, there are lots of good financial products out there that can assist you in your purchase, such as personal loans for cars, used car finance products and even bad credit loans for car purchases if you've got a low credit rating. Another option is to refinance your house with a homeowner loan to get access to large amounts of cash in order to make a big purchase such as a car.

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