Top tips on buying a used car

What do you do if you discover the car that you bought 3 months ago actually belongs to a finance company? Or if you discover the car you bought privately 2 years ago was previously clocked to reduce the mileage display? These are just some of the queries dealt with by the National Consumer Agency over the past year, who has received more than 2,600 contacts in relation to second-hand cars since September 2013.

The vast majority of queries were from consumers who bought second-hand cars, without checking them first and subsequently discovered that they were defective in some way. Other issues included the purchase of secondhand cars that had previously been crashed or clocked, poor customer service and consumers changing their mind after buying the car.

It is very important for consumers to understand the rights they have when they purchase a second hand car, and how these rights change if buying from a private seller rather than a dealer/business.  It is also essential for consumers to understand the many checks they should undertake to assess the condition of a used car before they purchase it. With this in mind, the National Consumer Agency has prepared the following guidelines to steer motorists in the right direction when choosing a car.

The first thing to consider is the amount you have to spend. To finance the car you may decide to open a savings account, take out a loan, opt for a hire purchase agreement or a Personal Contract Plan (PCP), which is similar to a hire purchase agreement. A PCP normally has relatively small monthly repayments, which can make the plan seem more affordable. However PCPs also have a very large final payment called the “minimum guaranteed future value” or “balloon payment”. It’s important to realise that in a hire purchase or PCP agreement, the finance company is the owner of the car until the full amount is paid back to them. Make sure that you have read in detail the terms and conditions that apply before you sign any agreement.  When preparing your budget for your car, you should also factor in the additional costs of running a car, such as motor tax, insurance, car servicing and repair and national car testing (NCT) costs.

Any car you buy will generally be used for a number of years so consider the type of car you need now, but also into the future.  A growing family could mean you need more space for baby equipment or more room for growing teenagers.  If you are travelling long distances you may focus more on cars with comfort, fuel economy and reliability features. An energy-efficient car will have the dual benefit of helping the environment whilst saving you money on your tax.

When you know the amount you have to spend, and the type of car you want, there are a number of checks to go through before purchasing the car.

Do a registration number check

Using the registration number of the car you can check if it has changed hands in the last three months by visiting www.motortax.ie. If it has you should question why it’s being sold within such a short time period. There could be a genuine reason for selling it on but it is good to find out if you can.

Call the seller before you view the car

When calling about a car make a note of the questions you want answered and write down as much information as you can. Compare the information you get with the advert to make sure that it is consistent. When you call refer to the car you saw in the paper/site. Don’t give any further information and wait to hear their response. If they say ‘which one’, ask if they are a trader or a private seller as your consumer rights differ when dealing with a trader compared to a private seller.

Know your rights

If you buy from a trader, you have some protection under consumer law. However, if you buy privately, you do not have the same consumer rights because the person selling the car is not acting as a business. For more information on your rights, visit www.consumerhelp.ie

View the car during the day

Don't examine a vehicle at night time or during wet weather because you not be able to spot flaws. Check for any visible signs of damage, for example, scrapes, dents, broken or cracked lights, inconsistency in colour paintwork, signs of leaks or tell-tale signs of repair, such as one headlight appearing newer than the other.

Test Drive the Car with a Mechanic

Test drive the car, with a mechanic if possible. Turn off the radio and air-conditioning to make sure there are no strange noises or smells of oil, petrol or diesel. It is an offence for a business to sell a car that is not roadworthy. However if you are buying the car from a private seller it is up to you, the buyer, to ensure the car is in good condition. Remember it is an offence for you to drive a car that is not roadworthy.

Check the history of the car

If you suspect that a car has been clocked there are a number of checks that you can do. The odometer will be displayed in miles or kilometers. The average annual mileage of privately owned petrol cars is about 17,000 kilometers (10,500 miles). Diesel cars, if they have been used for business purposes, could have a higher average of about 24,000 kilometers (15,000 miles). If you are thinking about buying a car that has substantially lower mileage than this, but shows signs of heavy wear and tear, for example on the seat covers, pedal rubbers, gear knob or steering wheel, be very cautious. If you think the odometer has been tampered with contact the Gardaí and let the National Consumer Agency know by contacting its Consumer Helpline on 1890 432 432.

Check the car’s history for insurance claims, crashes and service logs. You can do this on websites such as www.cartell.ie, www.motorcheck.ie or www.mywheels.ie for a small fee.

Always ask for certain documents when you buy a car; a written warranty stating what it covers and its duration; the car’s logbook; the car’s service book; a car handbook / manual; and a signed receipt for payment; National Car Test (NCT) certificate if the car is over four years old and/or the Vehicle Registration Tax (VRT) certificate if the car has been imported. Check the details of the car logbook against the sellers ID to ensure they are the current owner of the car.

Check the car is free of any hire purchase agreement

Check that the car you are buying is not under an existing hire purchase agreement on www.hpifirst.ie. If it is the person trying to sell the car does not actually own it and does not have the right to sell it to you.

Ask for two sets of keys

If you decide to buy the car ask for two sets of keys as it may prove expensive later on if you need a second key. For more information on what to watch out for before buying a second-hand car log on to www.consumerhelp.ie.

Avoid paying with cash

Always pay by bank draft, card or cheque when buying a car. If you do choose to pay by cash don’t hand it over unless you are fully happy with the condition of the car and you know what you are buying. Always ask for a receipt.

Take action if something goes wrong

If you discover there is something wrong with the car you bought contact the seller immediately and ask what they intend to do about the problem. If the car is under warranty, check the terms and conditions of the warranty or if the seller is a member of the Society of Irish Motor Industry (SIMI), you may be able to go through the SIMI complaints process.

If your claim does not exceed €2,000, you have the option of making a claim against the seller through the Small Claims process if you bought from a trader. However, if you bought a car privately, you cannot go through the Small Claims process but you can still consider taking legal action.

For further information on buying a used car visit www.consumerhelp.ie/buying-a-car