If you have made the decision to buy a used car, there are a number of places you can start searching. These include private sellers, used car dealerships or car auction showrooms and websites. There are advantages and disadvantages to each of these, but a dealership is often considered the safest way to buy a used car.

Dealers in used cars also come in different formats, such as franchised dealerships that sell used and new cars, independent used car dealers and car supermarkets. Dealerships are bound by consumer rights regulations that oblige them to uphold a certain standard of care to buyers and can protect you if there are any problems with your purchase. Dealers in used cars also almost always provide a warranty, which gives you further protection should the car develop a fault within the warranty period.

Dealer advantages

Another advantage of buying from a dealer is that you will probably be able to arrange a part exchange with your existing car or have access to finance packages such as personal contract payments or hire purchase schemes. Dealers often offer nearly new cars, which offer a huge savings on brand new models, usually with low mileage and often including some of the original manufacturer's warranty.

Dealers, particularly those that are part of an approved used scheme, tend to have put used cars through a rigorous inspection process to identify and then rectify any faults. Many also offer useful background checks to make sure that there is no outstanding finance left on the car from a previous owner and that the stated mileage is in accordance with documents. They are usually prepared to negotiate the price, particularly at the end of the month or the end of a quarter when they are trying to meet sales targets.

In contrast, when buying from a private seller, you would have to do a lot of this work yourself and don't get any warranty or finance plans. Buying from an auction carries a number of the same risks; you can't be entirely sure what you are buying.

Dealer checklist

When you are looking for a dealer in used cars, you should consider the following points to make sure you are getting the best service.

Warranty: Check what is covered by the warranty and any associated terms and conditions. It can be a good idea to pay extra to take up the option of an extended warranty if one is available.

Approved used scheme: Look for dealers who belong to a manufacturer's approved used programme because cars covered by the scheme will have undergone a rigorous inspections process and should be in excellent condition.

Finance: Make sure that dealers offering finance are FCA approved, which means certain standards of conduct must be upheld. The terms and conditions of any finance arrangement must be made clear.

Part exchange: This can be very convenient, making it easier to pay for your new car and saving you the trouble of getting rid of your old one.