Drive For Value That’s Fuelling A Used Car Boom

There may have been the odd dent or scratch. The interior may not have been pristine. That’s the way it is with first cars, which have, in 89 per cent of cases, been loved and driven before, according to a recent survey by Experian. And almost all of us will finish the way we began – 80 per cent of us never own a new car.

Only eight per cent of participants in the Experian Used Car Report 2012[1] were sure that they would drive a shiny, new car off the garage forecourt when it came to replacing their current vehicle, while more than 70 per cent are pretty certain that a pre-loved model is what they want.

The market is certainly strengthening, with predictions of a 1.5 per cent increase in used car sales every year to 2017, when 7.27 million used cars are expected to change hands. To set that in context, the research found that by the time you reach 55, the chances are that you will have owned 10 used cars.

The drive for value
The big driver is, of course, price, cited by every respondent in the survey as the biggest consideration when they chose a new-to-them car, with most people (48 per cent) paying less than £5,000 for a car that’s between three- and five-years-old, the age range given by 37 per cent of people.

And many believe the best possible value lies in private sales, which the Office of Fair Trading and British Car Auctions believe account for 40 per cent of the used car marketplace.

Buyer beware
With improved build quality, a used car no longer represents the same kind of risk it did 20 years ago. But there are pitfalls, especially as you don’t have the level of protection that you get under consumer law when you buy from a dealer.

For example, one in 12 people reported a private seller hadn’t told them that a car had faulty or missing parts and drivers were really worried that they might discover the car was a write-off or had been clocked (each cited by 58 per cent).

Outstanding finance, which means the car could be repossessed by the lender, was mentioned as a major concern by 57 per cent, while 56 per cent were worried that it might turn out to be stolen or a truly dangerous cut and shut – a car made up of elements of two cars welded together.

Precautions pay
Simple precautions, such as viewing the car at the vendor’s home and collecting it from the same home address, can help to set your mind at rest. You should also cross-reference the details in the logbook to confirm that the seller is the registered owner. And a thorough inspection (bring in a mechanic if you’re not an expert) and test drive should go without saying.

But these won’t uncover a car’s hidden history or answer those serious concerns. One increasingly common step is to order a Vehicle Check report, which can alert you to potential problems. It includes 26 different checks with more than 20 sources, such as the police, the DVLA and insurance companies, and includes verification of critical issues such as mileage and outstanding finance which aren’t covered by some vehicle history checking services.

That way you can buy with confidence – and find yourself a genuine used car that will give you years of reliable motoring.

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[1] July 2012: Based on a survey of 1,800 used car owners who have bought a used car from a private seller in the last 18 months, this report is the first of what will be an annual investigation into the private used car marketplace.