Prevent scams when buying used cars

Stephen Chesser - 15 of August of 2024

How to Prevent Scams When Buying a Used Car in the UK

Buying a used car can be a smart financial decision, offering significant savings compared to purchasing new. However, it can also expose buyers to the risk of scams, especially if precautions are not taken. The UK, like other countries, has had its share of fraudulent activities surrounding car sales, ranging from clocking (tampering with mileage) to selling stolen or unroadworthy vehicles. To avoid falling victim to these scams, it's crucial to follow a systematic and cautious approach. Below are key steps to help you protect yourself and ensure you are making a safe, informed purchase.

Research the Vehicle and Seller

Before even arranging a viewing, it's essential to research both the car and the person or business selling it.

• Check the car's market value: Use trusted websites like AutoTrader or Parkers to get an accurate estimate of the car's current market value. Be cautious of deals that seem too good to be true, as they may indicate hidden issues or fraudulent listings.
• Investigate the seller: If buying from a private individual, perform an online search for their name and phone number to check for any negative feedback or scam warnings. If buying from a dealer, make sure they are registered with a recognised trade association like the Motor Ombudsman or Retail Motor Industry Federation (RMI). Registered dealers are required to follow strict codes of conduct.

Check the Car's History

Before committing to buy, it's vital to obtain the full history of the car. Several online services can provide you with a detailed vehicle report based on its registration number.

• Perform an HPI check: This will reveal whether the car is stolen, written off, or has any outstanding finance on it. Scammers often try to sell cars that are still on finance, which can lead to the vehicle being repossessed even after you've paid for it.
• Check the MOT history: You can check a car's MOT history for free on Car Free Check. This will give you a record of past MOT tests, including advisories and failures, providing insight into the vehicle's condition and any recurring issues.
• Verify the V5C document: Also known as the logbook, the V5C document contains vital information about the car's registered keeper. Check that the details on the logbook match the car and the seller's identity. Be wary of sellers who refuse to provide the V5C, as this could be a red flag for a stolen or unregistered vehicle.

Inspect the Car Thoroughly

A physical inspection of the vehicle is critical to identifying potential issues that may not be obvious from the listing or photographs.

• Examine the exterior and interior: Look for signs of damage, rust, mismatched paint, or uneven gaps between body panels that could indicate previous repairs. Inside the car, ensure all controls, electronics, and safety features work as expected.
• Check the mileage: Make sure the mileage displayed on the odometer aligns with the car's service history and MOT records. Clocking, or rolling back the odometer to make the car appear less used, is illegal but still occurs.
• Inspect the engine and mechanical parts: If you're not mechanically inclined, it's advisable to bring along a knowledgeable friend or hire a professional mechanic to inspect the engine, brakes, suspension, and tyres.

Beware of Payment Scams

Scammers often take advantage of insecure payment methods or try to rush buyers into making payment without proper checks.

• Avoid bank transfers: Never pay for a car using an unprotected payment method like a direct bank transfer or money wiring service. Once the money is transferred, it can be extremely difficult to recover if the sale turns out to be fraudulent. Instead, opt for safer methods like paying via a credit card or using an escrow service.
• Be cautious with deposits: If the seller asks for a deposit to hold the vehicle, ensure it's a reasonable amount and that you have a clear, written agreement outlining the terms. If possible, avoid paying any deposit until you've seen the vehicle and verified its condition.
• Meet in a secure location: Always meet the seller at a secure, public location, such as a well-known dealership. Avoid any suggestions to meet in unfamiliar or private locations, as this could be a setup for a scam or theft.

Test Drive the Vehicle

Always take the car for a test drive to get a real sense of how it performs on the road. This is your opportunity to assess both comfort and functionality, as well as identify potential problems.

• Listen for unusual noises: During the drive, listen carefully for any rattling, clunking, or whining noises that could signal mechanical issues.
• Turn radio off: Check the radio and car sound before or after driving, but not while driving because it can hide strange noises from the car.
• Drive with windows closed: Drive with windows closed most of the time to hear sounds, but also drive with windows open.
• Check how the car handles: Pay attention to how the steering, brakes, and suspension respond. Ensure there's no pulling to one side, spongy brake response, or excessive play in the steering wheel.
• Assess warning lights: Look for any warning lights on the dashboard during the drive. If the seller dismisses them as minor issues, it could indicate deeper, costly problems.

Don't accept a rush deal

Sometimes what appears to be a good deal could be the worst possible deal.

• Take your time: If the seller is in a hurry and is telling there are other people interested, it's maybe time to drop off.
• Playing with time: Some scams start with the seller claiming he needs to close the deal because he is leaving the country and need to finalize the deal quicly.

Negotiate Smartly and Get a Written Agreement

Once you're satisfied with the car's condition and have verified all relevant documents, you can proceed with negotiations.

• Avoid bank transfers: Never pay for a car using an unprotected payment method like a direct bank transfer or money wiring service. Once the money is transferred, it can be extremely difficult to recover if the sale turns out to be fraudulent. Instead, opt for safer methods like paying via a credit card or using an escrow service.
• Negotiate based on findings: If you've discovered any minor issues or discrepancies, use them as leverage to negotiate the price. However, if major faults are uncovered, it may be better to walk away from the deal altogether.
• Get everything in writing: Before finalizing the sale, ensure you receive a written sales contract or receipt that outlines all the terms of the sale. For private sales, you can request a simple receipt signed by both parties. For dealerships, ask for a detailed invoice.

Post-Purchase Actions

After completing the purchase, there are a few more steps to ensure everything is above board.

• Transfer the ownership: Make sure the V5C logbook is completed and submitted to the DVLA, so the vehicle's ownership is transferred to your name. You can do this online or by post.
• Get insurance before driving: It's illegal to drive in the UK without valid insurance, so make sure your coverage is in place before driving the car home.
• Verify the tax: Check that the car is taxed and registered for road use. If it's not, you'll need to arrange tax through the DVLA before driving on public roads.

Conclusion

Buying a used car in the UK doesn't have to be a risky process if you take the right precautions. By researching the vehicle's history, thoroughly inspecting the car, verifying the seller's legitimacy, and being cautious about payment methods, you can avoid scams and make a safe purchase. Remember, taking your time and being diligent can save you from costly mistakes and ensure you drive away with a reliable and legitimate vehicle.

About the author

Stephen Chesser

Contributor

Stephen is a car entusiast with focus on safety above all. It is an amateur photographer and also a speed driver on closed tracks.

See more articles

Left hand drive cars in UK

Legalization, MOT tests, risks and disadvantages

ULEZ Restrictions in London

ULEZ and other traffic restrictions in London

Trends in the UK Car Market

Trends in the UK car market following the global trend

Car Top Sellers in UK

Car top sellers in the dynamic UK new car market