Consumer rights: Know the history before buying a car privately

The Competition and Consumer Protection Commission receives thousands of complaints over used motors every year

Research from the Competition and Consumer Protection Commission (CCPC) has found that one fifth of us don’t carry out any checks before buying a used car. None at all.

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.

Grainne Griffin, director of communications with the CCPC, points out that buying a car is one of the most important purchases a consumer can make.

“Not only is it a substantial financial investment, but buying an unsafe car can have tragic consequences," she said. "Since March, we have seen an increase in the number of consumers contacting the CCPC because they have unknowingly purchased a crashed car.”

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.

Brexit has had an impact on the cost of used cars and consumers may be tempted to cut corners to get a lower price.

"We are strongly advising consumers to use our car buyer’s checklist if they are buying a used car, and always independently check the vehicle 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 has fallen from almost half (49%) in 2016 to one in three (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.

Buying a car is one of the most important investments you can make.

The first thing you need to know is that consumer rights don’t apply to private sales. You need to keep an eye out, therefore, for what are known as ‘disguised’ traders.

These are professionals who pose as private sellers illegally. Search online for information about the seller; find out how many ads they’ve placed. If they’re selling several cars at once, this could indicate they are a disguised trader, posing as a private seller in order to avoid the responsibilities the law places on them.

Despite how perfect your prospective new wheels may appear, it’s almost impossible to know whether or not it 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. Just search ‘car history’ online.

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, which can help you to work out if the car has been clocked.

Clocking

Clocking means changing the genuine odometer reading of the car in order to make it seem like it has been driven less than it actually has. Spotting a car that has been clocked can be tricky.

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. Check the car’s documented history and have it looked at by a mechanic to be on the safe side.

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 both here and in the UK, this check is particularly important.

Consumer law says that when you buy from a dealer, the car should be ‘of merchantable quality’. This means that the quality of 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.

It’s an offence for a dealer to provide misleading information about the car, and that includes any misdirection about its history, specification and any repair work needed. It’s also an offence under consumer law for a dealer to withhold information when selling a car.

If 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.

Price is not everything

Whatever you do, don’t be led by price alone: what may appear as a bargain now can end up costing you more if repair work is needed after you buy.

The car is second only to the house as the biggest purchase any of us ever make, so shop around. Check car buyers’ websites and magazines so you know the average price for the type of car you want, based on the specification, mileage etc. And remember if it is too good to be true it usually is.

The CCPC also advises care in how you pay. Always try to pay by a traceable method, such as credit/debit card or bank transfer. Paying cash is risky as you will have no record of your money if something goes wrong.

This is not to suggest however that you should finance your new car with your credit card. There’s probably no worse way to fund the purchase.

Before you begin shopping around, take some time to review your financial situation to work out how much you can afford. Consider both the upfront cost of a deposit (and whether you have a car to trade in), how much you can afford in monthly repayments and the ongoing running costs: insurance, tax, servicing and fuel.

Go to the Competition and Consumer Protection Commission to see the car history checklist.