Car buyers beware of crashed vehicles

A fifth of us don’t carry out any checks before buying a used car, writes John Hearne

It is far less stressful and time consuming to do your homework before you buy the car than it is to seek redress after the fact.

Last week, the Competition and Consumer Protection Commission (CCPC) announced that it had taken enforcement action against a Dublin-based car trader for ‘engaging in misleading commercial practices and providing misleading information to consumers’.

John McLoughlin, trading at Mac Autos, Raheny, Dublin 5, was required to issue refunds to consumers who had bought cars from him in 2018 and 2020.

One of these spotted an ad on Donedeal.ie for a Citroen C1 ‘in mint/showroom condition inside and out’. The ad neglected to mention however that the car, a UK import, had been classified as a ‘category C’ write-off in the UK. This means that while the car was repairable, the costs of the repair were adjudged to exceed its resale value.

Because the consumer didn’t know this, he paid €3,300 for the car.

A second complainant bought a Ford Focus from Mac Autos in 2020. Before buying the vehicle, the consumer was savvy enough to repeatedly ask Mr McLoughlin if the car had been crashed. He was told that it hadn’t. It wasn’t until after the consumer paid €4,000 for the car that he discovered that it had actually been written off in 2017.

In both cases, authorised officers from the CCPC established that the complainants would not have purchased the vehicles in question if they had been informed that they had been damaged before.

The thing is, it’s not actually illegal to sell a clocked or crashed car. If you’re a trader, you’re perfectly within your rights to turn back the odometer so that it appears as if the car has not clocked up as much mileage as it actually has.

Similarly, you’re not breaking the law if you sell a car that’s been crashed and adjudged an insurance write off. In both of these cases, illegality only enters the picture if you don’t tell the person to whom you’re selling the car that it’s been clocked or crashed.

Following engagement with the CCPC, compliance notices issued under section 75 of the Consumer Protection Act 2007 were served on the trader. These notices require Mr McLoughlin to complete history checks on all cars sold in future and where the car’s odometer does not match what is currently on it, or where the car was crashed or damaged, the consumer must be informed. And of course Mr. McLoughlin has to refund the two consumers.

While there is comfort in the fact that action is being taken against traders who misrepresent the cars they sell, the buyer should still beware. It is far less stressful and time consuming to do your homework before you buy the car than it is to seek redress after the fact.

According to research published by the CCPC last year however, around a fifth of us don’t carry out any checks before buying a used car.

Moreover, nearly a quarter (23%) bought from private sellers – which means that we bought without any of the consumer protections that apply when you buy from a showroom or car dealer.

So perhaps it’s no surprise to hear that every year, the CCPC receives over a thousand calls from consumers reporting issues with used cars, including those who have unknowingly bought crashed or clocked cars.

The Irish used car market has been seriously impacted by both COVID and Brexit. As a result, the CCPC has seen consumers taking increased risks by buying cars from private, or less reputable sellers, without checking the car history.

Over half (51%) of consumers who bought used cars over the past five years bought from a car dealership, with a further 21% buying from a motor garage. In addition to the 23% who bought from private sellers, a further 5% bought directly from a family member or friend.

When compared to a similar study carried out by the CCPC in 2016, the percentage of consumers who had a mechanic check their car before buying fell from 49% in 2016 to 36% in 2021. In addition, there has been an increase in the number of consumers who bought a used car without carrying out any checks at all, from 17% in 2016 to 20% in 2021.

Unless you know a lot about cars, you should get it independently vetted by a mechanic. In addition, the CCPC’s car buyer’s checklist at ccpc.ie is an excellent resource. It will also help you keep track and compare different cars easily.

If you’re buying from a dealer, they should offer some form of warranty for the car. If the car is reasonably new and the dealer is not willing to offer a guarantee, listen to those alarm bells.

And, as both of these car buyers discovered, it is vital to check out the car’s history. Despite how perfect your prospective wheels may appear, it’s almost impossible to know whether or not the car has any dark secrets unless you get its history checked out.

There are a number of companies who will run a variety of background checks for you for a small fee. Search ‘car history check’. They will be able to tell you if the car was ever written-off, and will give you a firm indication of the true mileage of the car.

The average annual mileage of a privately owned petrol car in Ireland is about 17,000 kilometres (10,500 miles). Diesel cars, especially if they have been used for business purposes, could have a higher average of about 24,000 kilometres (15,000 miles). A mismatch between the mileage and the wear and tear on the car is a telltale sign of clocking. Take a look at the seat covers, pedal rubbers, gear knob and steering wheel. If these show signs of heavy use but the odometer does not, there may be an issue.

A history check will also tell you the number of previous owners, and crucially, whether or not there is outstanding finance on it. At a time when credit is fuelling so many car purchases, this check is particularly important.

Consumer law says that when you buy from a dealer, the car should be reasonable and acceptable given its age and history. It should also be fit for the purpose and roadworthy, and it should match the description given verbally or in an advertisement.

If, on the other hand, you buy a car from a private seller and discover a problem, there’s not a whole lot you can do short of taking the seller to court. So take particular car when buying privately and make sure the car gets a good once over from a mechanic.