Buying Your First Car

Buying a car is likely to be one of the largest purchases you will make, so it is essential that you equip yourself with useful information before you go ahead.

Which car is best for me?

You should spend time deciding which car is going to suit your requirements – work, family and personal. It is worth giving this plenty of thought. A sports car may be fun but impractical, and a luxury car may impress your friends but the upkeep may prove expensive.

Set a realistic budget and always remember to take the car’s running costs into account – think about how much it will cost to insure and what the fuel, servicing and repairs costs are likely to be.

Shop around, visit local dealers, check out the local press and motoring magazines and search online to compare models, prices and specifications.

Who should you buy from?

A motor trader

A car bought from a trader is likely to cost you more than buying privately but there can be benefits. Many traders offer pre-sales checks and you may be able to take advantage of after sales service, warranties and credit facilities. If things go wrong, you are legally entitled to expect that the car is of satisfactory quality, fit for it’s purpose, as described and roadworthy. You may not have all this protection if you buy privately or at auction. Remember, always find out who you are dealing with and check the identity and reputation of the trader. It is also worthwhile finding out if the trader is a member of a recognised trade association. In some areas, there may be an Approved Garage Scheme which is administered by your local Trading Standards Service. If there is such a scheme, buying from one of the approved garages may give you added protection. In Scotland, many local authorities licence sellers of second-hand dealers under the Civic Government (Scotland) Act. Establishing whether the garage is licensed by the local authority may also be of assistance, as the licence conditions may require the dealer to display certain details about the vehicle. The salesperson’s primary role is to sell the cat at the best possible price. Always be prepared to haggle.

Many traders now have websites and it is possible, therefore, for a consumer from Scotland, for example, to buy a car from anywhere in the United Kingdom (even abroad). In many cases, the trader’s website will identify the car you are interested in and the transaction will be completed at the garage premises. In other cases, the transaction may be completed away from the trader’s premises, and possibly online. Depending on where and how the transaction takes place may affect you rights. In some cases, your rights may be weaker; in other cases, your rights may be stronger. If you have any doubts, or wish to clarify your legal rights in your particular circumstances, you can contact Consumer Direct on 08454 040506, who will be able to advise you.

A private seller

If you buy privately, you need to be extra careful as you will have fewer legal rights if things to wrong. It is essential that you check that the person selling the car really owns it. Keep a copy of the advertisement and always ask for the name and address of the seller. Cross-reference the details you are given with those on the V5C – the new style V5, also known as the log book or registration document.

At auction

Car auctions are becoming increasingly popular with private buyers but you should be aware that you have fewer rights than when you buy from a motor trader. It is important to:

• take the opportunity to view the cars before the auction;

• take someone with you who knows about cars and who has experience of auction sales;

• familiarise yourself with the auction’s terms and conditions of trade;

• never be tempted to bid over the amount you were initially prepared to pay, and to

• check the notice fixed to the car as it will give useful information on it’s condition and history.

If in doubt, do not bid.

Another recent and increasingly popular method of buying a car is through Internet auction sites, such as ‘eBay’. Although this is different from the normal type of auction, it still requires a bid to be made. The main problem for consumers in this respect is that whilst you can see the description of the vehicle you are bidding for, you can’t inspect it before your bid is made. Whilst there are many satisfied buyers who have bought cars using this method of purchase, it can be more difficult to determine if you are buying from a private or a trade seller. In some cases, you could be bidding for a car that may not be in the United Kingdom.

You should be even more aware of the problems that this type of buying could give you. You should, therefore, make sure you do as much research as you can, and make sure that the vehicle you are bidding for is the make and model that you want. Contacting Consumer Direct on 08454 040506 before you bid may be useful.

How are you going to pay for the car?

If you buy from a trader, there may be various options open to you. Hire-purchase, conditional sale, credit card, cash or arranging your own finance. Shop around for the best deal. Comparing the APR (annual percentage rate) of credit deals could, potentially, save you hundreds of pounds in interest. Make sure you read and understand the documentation before you sign.

In a private sale, it is always preferable to pay by bankers draft rather than in cash. It is important that you pay the person named on the V5C and always get a receipt.

What to check before you buy

• Clocking cars is a way of reducing miles shown on the car’s odometer. In some cases, it is difficult to tell whether the indicated mileage is correct or not. It is common practice for traders to disclaim the accuracy of the mileage by placing a ‘disclaimer sticker’ on or near the odometer. Look out for:

• Check the general condition of the bodywork and look for signs of rust and welding. The condition should reflect the age of the car and the asking price.

• Make sure that all the tyres, including the spare, have the correct pressure and tread.

• Go for a thorough test drive.

• It is strongly recommended that you have the car checked out by a qualified auto engineer (either an independent engineer or through a motoring organisation) if you don’t have the expertise to check the car’s condition yourself.

• Check all the relevant paperwork to satisfy yourself that everything is in order.

• Each car is issued with a vehicle registration document by the DVLA, which contains unique information about it. This is called the V5C. Always ask to see the V5C and ensure the VIN (Vehicle Identification Number) or chassis number is the same as indicated on the V5C. This is to ensure that the person selling the car is shown as the previous keeper.

• Ask to see the current and previous MOT test certificates. Look for discrepancies in the mileage figures and. if possible, check the certificate’s validity in case it has been stolen.

• Does the car have a full service history? Ask to see it and carry out checks through the traders who have previously stamped the service book to ensure the entries are accurate.

• It is wise to have a history check done on the car. There are organisations which hold data on cars and can tell you, for a fee, whether the car has outstanding finance on it, whether it is an insurance write off or stolen. You can also find out if the mileage is accurate and whether the registration number and VIN match. Contact Consumer Direct on 08454 040506 or visit the Consumer Direct website.

• Read the contract carefully before you sign. Anything agreed between you and the trader, such as prepurchase repairs, should be written on the contract.

• Read the finance agreement (if any) carefully and make sure the figures add up.

• If you are offered additional insurance or an extended warranty, check the terms and conditions (particularly the exclusions) to make sure they are suitable for you. Remember, these are optional extras – you still have legal rights against the trader. Don’t be pressured into buying them.

Don’t assume that you can change your mind if you sign an order to buy a car. You could be in breach of contract if you cancel. You might lose your deposit and the trader could try and recover any additional losses from you. There are exceptions to this. If you agree to buy the car on finance arranged by the trader, you may be able to withdraw from the agreement before it has been ‘executed’ i.e. signed by all relevant parties. You should then be able to recover your deposit.

Closing the deal

Never be rushed into a decision – take stock of all the information you have and give yourself thinking time before agreeing to buy. Make sure that you get a receipt and/or copies of the contract and finance agreement and keep them safe.

This leaflet is not an authoritative interpretation of the law and is intended only for guidance. For further information, visit the Consumer Direct website or telephone 08454 040506.

Last reviewed/updated: March 2006

Copyright 2006 itsa Ltd on behalf of the Trading Standards Institute