Here are a few points that are good practice when buying a used car:
Is there outstanding finance on the car?
If you buy a car that is already financed, the owner cannot sell the car until the finance is paid. They cannot use your payment to settle any finance after the point of sale. Cars selling for as little as £1000 can be used as security on short term ‘log-book loans’. If there is any outstanding finance, you could lose the car and have to repay the debt. You can carry out a HPI check to see if there is any outstanding finance, for around £10.
Does the seller actually own the car?
Ask to see the registration document and check that it shows the seller’s name and address. (trade sellers/dealers will have the document in the previous owner’s name). You should not arrange to meet the seller anywhere that is not the seller’s address (do not arrange to meet at motorway services or car parks etc).
Condition
Is the car well presented? Is it clean inside? A dirty car can be cleaned up, but it’s a reflection of an un-caring owner. Are the tyres good quality or cheap unbranded budget tyres? If the owner has fitted the cheapest tyres, the car has been maintained on a budget. Where else have the costs been cut?
MOT history
Check the MOT history on the GOV.UK website. This will show the items that needed repair or attention in the last MOT tests. If something keeps cropping up as an advisory item, it obviously hasn’t been dealt with, and its only a matter of time before it will need attention.
Paperwork
Look for service books and receipts to show the car has been regularly serviced. All manufacturers have different service schedules, but a good rule of thumb is a service every 12 months or every 10,000 miles.
When selling a car, file all the paperwork in a folder so it’s easy to find. Keep your MOT certificate, registration document and service records all together. It looks organised and it’s all in one place when you eventually sell the car.
Test driving
If you are viewing a car, make sure you are insured to drive it. Check with your insurance company and make sure you have appropriate cover. Driving without the correct insurance can result in 6 penalty points and a fine. If you allow someone to drive a car you are selling, without suitable insurance, YOU will ALSO receive 6 penalty points and a fine.
On your way to view a car, look for a suitable stretch of road that can be used for a test drive. Work out a short loop and try it in your own car. If you aren’t very confident, try a route where you turn left at all junctions, so you don’t have to cross the carriageways.
If you are selling a car, always go on the test drive with the buyer. They may offer to leave the key to their car as security, but this could be a way of stealing your car. Common practice is to leave a fake key for their car, that doesn’t work. They can take your car and come back later and collect theirs.
Receipts
If you are buying or selling, you need 2 receipts. One for the seller and one for the buyer. Make sure it shows names and addresses of both parties as well as the car registration, price paid and date. If your used car comes with a warranty, make sure you have that in writing.
