Our handy tips will help to explain the pitfalls sometimes encountered when purchasing a used car, and how to avoid them. Purchasing a used car can sometimes be a risk but choosing the right dealer will eliminate the risks.
Whilst buying a used car from an auction or on-line auction site may seem like a saving compared to a retail showroom, it could also be a potential nightmare waiting to happen. The benefits and advantages of selling under the hammer are weighed in favour of the seller, simply because there are no comebacks if things go wrong.
Purchasing a used car from a trusted dealer will give you peace of mind in knowing that the vehicles offered for sale have been carefully selected, mechanically sound and properly prepared for sale.
1. Does the seller own the vehicle they are offering for sale?
One in four vehicles in the UK are financed and most of the institutions that fund these vehicles will normally insist on retaining their interest in the vehicle until their debt has been repaid in full. Their agreements typically contain terms and conditions that prevent the sale of the vehicle without their express and written permission whilst their is an outstanding debt owed to them. Financial institutions who lend against the value of the asset and wish to retain their interest in it until full settlement of the agreement has been made will usually record the relevant information on various registers, these registers can be accessed by members of the public (usually for a small fee) and here are two of the more well known company’s who provide this service; HPI, Experian Auto Check, all it takes is just a few clicks to get piece of mind and avoid potential misery.
Purchasing a vehicle that is subject to a finance agreement normally results in the finance company obtaining a court order to gain possession of it, regardless of whether or not you thought it was yours, just because you paid for it. The consequences of this happening doesn’t bear thinking about, not only would you lose the car but also any realistic prospect of getting your money back. So the tip is:- do your checks before parting with any of your hard earned cash.
2. Has the vehicle ever been subject to an Insurance claim?
A large percentage of vehicles have at some time or other suffered an incident, maybe it is just a minor scuff in a supermarket car park or possibly something more serious which may have involved an insurance claim. An insurance claim against a vehicle will normally result in its value being adversely affected, even if there is no longer any physical evidence of the damage sustained, once a vehicle is the subject of an insurance claim it has a black mark against it and should be examined more carefully if you consider it to be an option when choosing your next vehicle. It does not mean that such a vehicle should be ruled out but certain factors should be taken into account in the price negotiating process. It is also vital to check whether or not the vehicle has been the subject of an insurance claim and this can be done in conjunction with the financial check with HPI or a company offering a similar service. A vehicle that has been extensively damaged should have its identity checked more thoroughly to rule out anything untoward.
What does ‘Cat C’ and ‘Cat D’ mean?
Vehicles that have been extensively damaged and the subject of an insurance claim are given an ABI category, the details of these categories can be found here. Vehicles with a Cat C or D are of much less value by mere virtue of the fact that they have had prior damage and undergone repairs. The HPI register holds information about vehicles that have been given a category.
If you intending to purchase a vehicle from a dealer with a cat C or D then the dealer is under an obligation to make that fact known. However, you may find that a private seller is not so forthcoming with such vital information and deliberately withhold the information in order to achieve a higher price. It is worth checking the V5 thoroughly of any vehicle you intend to purchase as this will reveal any history of an ABI category. If the V5 is not present at the time you are looking at a particular vehicle to purchase then you’d be well advised not to part with any cash until it is. Remember this saying “purchase in haste, repent at leisure”.
It is worth noting that some vehicles (not necessarily all) with a cat C or D mark against them have a chequered history, it may also be impossible to establish whether or not the repairs were carried out to a satisfactory standard until they are involved in an impact. It is also much more difficult to re-sell a vehicle with a Cat C or D, so if you went ahead and purchased one, knowingly or otherwise and wanted to sell it again then there is a good chance you could either be stuck with it or faced with losing a substantial amount of money.
3. Check the Vehicle Identity
It is important to check the identity of a vehicle you intend to purchase. The VIN (Vehicle Identity Number) can be found in several places on the vehicle and usually one of the places to look is behind the windscreen looking from the outside in located in the bottom corner. This and any other places that the number is present should be checked against that of the VIN number on the V5 (Vehicle registration document) the number and letters should all be identical, if not then there is a problem and further investigation is advised.
4. Mileage
One of the factors taken into account when valuing a used vehicle is the mileage it has covered. An average annual mileage for valuation purposes is in the region of 12,000. Motor dealers will consult a trade guide to assist them in valuing a vehicle. Some other factors come into the equation such as make and model, general condition, number of previous owners and so on. But probably two of the most important factors used in determining what a vehicle is worth is the mileage covered and service history. If there is no tangible evidence of the vehicle being serviced and maintained in accordance with the makers’ recommendations then it has to be assumed that the vehicle has not been properly looked after and expensive repairs are probably looming.
In my view it is far better to be the owner of a vehicle that has covered excessive mileage supported by meticulous maintenance records than a lower mileage vehicle without. Nowadays vehicles are well engineered and built to last but like anything else, if they are not properly maintained then they are just a breakdown waiting to happen.
A comprehensive check from HPI will put your mind at rest on many important factors that should be considered when purchasing a vehicle, why not check them out here.
5. Take your time in making a decision
Avoid pushy salesman at all costs, take your time to make a decision as you will have to live with it for a long time. Do your checks and be absolutely sure before parting with any money or signing any documents.
The transaction should be made in a no pressure environment and be your choice and not the salesman’s.
