Most used car fraud happens at the moment money changes hands. A few simple rules protect you, whether you buy from a dealer or a private seller.
Only pay when you have seen the car
Never pay a deposit for a car you haven't seen in person, however good the deal. Adverts for cheap cars “stored with a delivery company” or sold by someone “working abroad” are a common scam: the car doesn't exist.
Check everything before you pay
- Run a history check on the day: finance, theft and write-off records change all the time.
- Compare the VIN on the car with the V5C, and check the V5C is genuine.
- Make sure the name on the V5C matches the seller and the address where you view the car.
Choosing how to pay
- Bank transfer: the most common way to pay a private seller. Pay only once you're with the car and the keys, V5C and paperwork are ready to hand over. Most banking apps check the account name matches the person you're paying; if it doesn't, stop.
- Credit card (dealers): paying all or part of the price by credit card can give you extra protection under Section 75 of the Consumer Credit Act, for purchases between £100 and £30,000. Even a deposit paid by credit card can make the card provider jointly liable if things go wrong.
- Debit card: you may be able to ask your bank for a chargeback if the dealer doesn't deliver.
- Cash: it leaves no record and carrying large amounts is risky. If you do use it, count it at the seller's home or a bank and get a receipt.
- Escrow and “delivery” services: be very wary of any service the seller suggests. Fake escrow websites are a common scam.
Get it in writing
Write a simple receipt, two copies, signed by both of you. Include:
- the date, price and how it was paid;
- the registration, make, model, VIN and mileage;
- the seller's and your names and addresses;
- any statements about the car, such as “no outstanding finance” or “full service history”.
After you pay
The seller should give you the new keeper slip (V5C/2) and tell DVLA about the sale. You'll need to tax the car before you drive it; see why tax doesn't transfer and how to tell DVLA.
Key points
- Never pay for a car you haven't seen.
- Check the history on the day you pay and confirm the payee's name.
- Get a signed receipt. Read about common used car scams.