What to look for when buying a used car

Where should I go when buying a second-hand car?

Over 7 million used cars changed hands in the UK in 2023 and the second-hand car has continued to grow in 2024, according to the Society of Motor Manufacturers and Traders (SMMT). If you’re considering becoming part of this growing group, the first question is, where should you buy one?

Dealership

Dealerships can be more expensive than private sellers but offer things like part-exchange deals and warranties. Established dealers should run vehicle checks, which will reduce the chances of your car breaking down as soon as you get it home.

Dealers vary from large franchises to independent garages and sole traders. Larger dealerships often provide thoroughly inspected cars with warranties, albeit at a higher cost.

To make sure you’re buying from a reputable dealer, you should:

• Check reviews from other customers.

• Look for accreditation from a trade association such as the Retail Motor Industry Federation (which covers England, Wales, Northern Ireland and the Isle of Man) or the Scottish Motor Trade Association. You can search for accredited dealerships on their websites.

• Look for a sign that indicates the dealership follows The Motor Ombudsman’s Code of Practice. This means that you’ll be able to go through a trade association if something goes wrong.

• Buy from a dealership that has its second-hand cars checked by an independent motoring organisation or engineer.

Private seller

You might get a better price with a private seller, but you’ll need to make sure yourself that the car is in good working order. This could mean hiring a mechanic to check the vehicle for you, which is an additional cost.

Buying from a private seller offers less protection than buying from a dealership if something goes wrong after the sale. But there are steps you can take to protect yourself:

• Get a written description – Keep copies of the advert and confirm any details via email. Legally, you should be entitled to a repair or partial refund if the car doesn’t match the description.

• Go to the seller’s home to view the car – Avoid meeting in public places, as this might suggest the seller doesn’t want you to know where they live if there’s a problem with the car.

• Don’t go alone – Take a friend or family member with you when you view the car. Ideally, rope in someone car-savvy.

Auction

Buying a car at auction could be a bargain, but it’s also quite risky. Sellers aim for quick sales and don’t usually offer a lot in the way of protection, like a warranty.

Decisions need to be made quickly at an auction, which might lead to hasty choices. Plus, inspecting or test-driving beforehand is often not an option.

If you’re buying at a used car auction:

• Research beforehand – Know the going rate for similar cars at dealerships or private sellers and check past auction prices. It’s also very important to understand the specific terms and conditions of the auction before bidding.

• Arrive early – Use browsing time before the auction begins to inspect cars you’re interested in.

• Pay close attention – As cars move through the auction hall, listen to the engine and watch out for any signs that the car isn’t running well.

• Stick to your budget – Avoid bidding wars and factor in any fees that the auction house charges on top of the purchase price.

What to check when buying a used car

Before buying a second-hand car, always arrange a viewing in daylight, ideally when the weather’s dry as it can be harder to spot damage when it’s dark or raining.

Here’s a checklist of what to look out for when buying a used car:

• Paintwork - Look out for any inconsistencies in colour or panel gaps on the used car – they might hint at past repairs. Rust is a red flag too. Even small spots can lead to costly fixes, with bubbled paintwork being a clear giveaway. Minor scratches are common and fixable, and they could be a good bargaining chip.

• Doors, windows and boot – Check that the doors, windows and boot open and close smoothly.

• Suspension – Give the car a good bounce by pushing down on each of the four corners, then letting go. You want the car to return to position smoothly. If it doesn’t or it bounces around, you could be in for a rough ride.

• Tyres – Check they are in good condition and have a decent tread. Anything less than 3mm will probably need to be replaced and if it’s less than 1.6mm, it’s illegal in the UK. It’s also worth checking the car has its spare wheel or puncture repair kit, along with – very important – the key for unlocking the wheel nuts.

• Under the bonnet – Check the fluid levels: oil, brake and power steering. Look for leaks and check the oil isn’t dirty, as that might suggest the car hasn’t been properly maintained. The coolant should not appear rust-coloured.

Other things to check when buying a used car:

• Do the horn, windscreen washers and wipers all work properly?

• Are there any signs of windscreen damage, like chips or cracks?

• Check the front and rear lights for any sign of cracks or fogging.

• Make sure the lights, indicators and front/rear wipers work.

• Seat belts should fasten and not be cut, frayed or damaged in any way.

• See if the airbag warning lights work as they’re meant to – the car’s manual should show you what they’re supposed to do.

• Make sure the heating, air con and ventilation controls work, along with the radio or entertainment system. If the car comes with a sat nav, ask how to use it – doing so could reveal any glitches.

• You should be able to adjust the seats and headrests, and check any folding seats work too.

• Check the upholstery for stains and tears. Does the car smell funny? Bad smells like cigarette smoke can be really difficult to get rid of. Check if the car smells strongly of anything the owner might be using to mask another smell.

• If you have a young child, will the pushchair fit easily into the boot? How easy is it to fit the child seat?

• If you’re buying a used electric car, check to see whether the battery is leased. And is it compatible with rapid chargers if you frequently travel distances beyond the car’s normal range?

How to check for accident damage on a used car

When doing your general checks of your potential new car, it's important to check for accident damage. If a car has been in an accident and repaired, this could cause issues to develop further down the line.

Here are some things to look out for:

• Bodywork – Look for any uneven gaps between panels, mismatched paint or areas where the bodywork appears weaker than the rest.

• Test the doors and boot – Ensure they open and close smoothly. Sticking might suggest misalignment from an accident.

• Check the frame – Keep an eye out for welding marks or bends and any third-party bolts or hinges that don’t match the original.

• Examine the tyres – Uneven tyre wear can be a sign of alignment issues, possibly from a past accident.

Consider a used vehicle inspection

If you’re good mates with a car mechanic, then it’s definitely worth taking them along to view a used car. Failing that, you could book a used vehicle inspection.

Both the RAC and the AA offer used vehicle inspections. They’ll check that the car is mechanically and structurally sound. The cost depends on whether you want a basic check or a more comprehensive level of inspection.

What documents and details should I check before buying a second-hand car?

Before you consider buying any used car:

• Check the V5C registration document – Make sure you get the V5C registration document as this verifies that the vehicle is legally registered, and identifies its registered keeper. The keeper is the person who has day-to-day responsibility and use of the vehicle. They are often, though not necessarily, the owner. Keeper and owner are different in the case of a company car or lease car, for example. The V5C is not proof of ownership.

  • Always check that the name of the registered keeper matches the person you’re dealing with, and the address matches too.

  • Check for a watermark, any spelling mistakes and confirm the number plate and vehicle identification number (VIN) match the car.

  The V5C also reveals how long the seller has owned the car and the number of previous keepers (though not their details). Frequent changes in ownership could be a red flag that the car has problems.

• Check for proof of ownership – For this, you’ll need to see a receipt, sales order or invoice from when your seller bought the vehicle themselves.

• Check the car’s history - Check the car’s details using the DVLA’s free vehicle information checker to confirm they’re the same as those in the V5C logbook. All you need is the car’s registration number.

• Check the MOT history - You can also use the Government’s MOT checker to get a full rundown of the vehicle’s MOT history, including when the next one is due. The car should have only been excluded from having a MOT if it was officially declared off road with a SORN.

• Check the service history - Get the car’s service history so you have an idea of how well, or how badly, it has been looked after.

Consider a private history check

There are websites that offer private history checks on used cars for a fee. These are sometimes called data checks. A private history check can tell you if a car:

• Has been reported stolen

• Has previously been written off

• Is showing the correct mileage or if it’s been clocked

• Has outstanding finance on it.

Test-drive checklist for buying a used car

Always test-drive the car to make sure it runs smoothly and to see if you’ll enjoy driving it. Here are some of the main points to look out for:

• Starting the engine – listen out for anything that sounds ‘angry’ when you start the engine. Funny engine noises signal potentially expensive repairs.

• The temperature gauge – make sure the car starts from cold and from warm. Watch to see if the thermostat is working correctly and look out for any signs of overheating.

• Clutch and gears – if it’s a manual car, they shouldn’t be stiff nor should they stick. If the car’s an automatic, the transmission should be smooth, quiet and in line with the speed and engine load.

• Brakes – check that the brakes and handbrake work properly. The brakes shouldn’t make any noise when you slow down and braking should be easy and effortless.

• Steering – is the power steering effortless or does it feel heavy? If you take your hands away, does it remain straight or pull to one side?

• Suspension – is it smooth and comfortable or do you feel every bump in the road?

• Performance – does the car keep up with traffic or does it feel a little sluggish? Accelerate through the gears and make sure you like the way it drives.

Do you need insurance to test-drive a car?

In short, yes. You'll need to make sure you’re insured to drive the car before you take it for a test-drive.

If you have your own car insurance, check that you’re covered to drive someone else’s car. This is fairly rare these days, so it’s likely you won’t be insured. In this case, check if the dealership or private seller’s car insurance covers you.

Don’t test-drive a car if you’re not insured. You’ll be liable for any damage you cause, and you could get points on your licence.

If you decide to buy a used car

Used cars aren’t always perfect. What’s important is that you know what you’re getting for the money and that there won’t be any nasty surprises down the line. If you’re happy with the car and decide to go ahead, don’t be afraid to haggle for a lower price.

But if you have doubts about a car or its history, it's safer to walk away, as recovering money through the courts can be costly and time-consuming.

Paying for the car

When it comes to paying for a used car, you have several options to consider, but only hand over money when you’re totally happy with what you’re buying.

• Cash – paying in cash can sometimes get you a better deal, as sellers appreciate the immediacy. But it’s generally safer to use a method of payment that can be tracked, such as a credit or debit card.

• Card – Using a credit or debit card provides a record of the transaction. If you use a credit card, your purchase may be protected by Section 75 of the Consumer Credit Act, as long as your new car costs more than £100 and less than £30,000, although this isn’t guaranteed. If you use a debit card, check if your provider has a chargeback scheme that could protect your purchase.

• Car finance - Many dealerships offer finance options, allowing you to spread the cost of the car over a set period. Make sure you understand the terms and interest rates involved, and feel comfortable with the repayments, before signing up to any finance agreements.

Regardless of how you pay, ask for a receipt that includes the date, car registration, mileage and a written acknowledgement of any work that the seller has promised to carry out before you collect the car.

Can I return the car if I’m not satisfied?

Yes, you can. However, your rights vary depending on where you bought your car, and you will have less protection from private sellers or auctions compared to dealers.

If you buy from a dealer

Under the Consumer Rights Act, cars bought from dealers must be fit for purpose and as described. As section 75 of the Road Traffic Act 1988 states, it’s illegal for anyone to sell a vehicle that’s not roadworthy.

In addition, the Consumer Rights Act 2015 gives you certain rights, though these don’t apply to private sales.

You have the right to reject the car within 30 days if it is faulty. If a fault arises after 30 days but within six months, you're entitled to a repair or replacement. If this doesn’t resolve the fault, you can ask for a refund or price reduction.

From six months, you’ll have to prove the fault was present at the time of purchase. This will often require an independent expert to examine the car and provide a written report.

After six years, you’re not entitled to any legal remedy in England and Wales (after five years in Scotland).

If you buy privately

Private sales come with less protection. The only legal terms that cover a private sale contract are:

• The seller must have the right to sell the car.

• The vehicle should match the description given by the seller.

• The car must be roadworthy – it is a criminal offence to sell an unroadworthy car and an MOT certificate from a test several months ago is no guarantee that the car is roadworthy today.

Sort out your tax and insurance

Before you can drive your new car, you’ll need to get it taxed and insured – it’s a legal requirement.

You can tax your car using the green ‘new keeper’s slip’, from the V5C logbook. You can do this online at GOV.UK, by calling the DVLA or at a Post Office.

Thankfully, insuring your used car is pretty simple. Just tell us a little bit about yourself and your car, and we’ll compare quotes from a variety of insurance providers to help you search for car insurance that’s right for you.