Used car buyers urged to be vigilant
With fresh headlines from the Office of Fair Trading (OFT) hitting the news on used car buyers, leading vehicle information expert, HPI, is warning buyers to be vigilant when purchasing from a dealer or a member of the public. Buyers need to take the right steps to protect themselves from vehicles that could turn out to be a nightmare on wheels.
One in five of the 3.6 million people buying used cars last year experienced a problem, according to the BBC News online feature of the OFT report. Many consumers find peace of mind in shopping with a dealer, rather than a private buyer, as purchasing from a dealer offers some legal protection. Worryingly the OFT report reveals many used car buyers in dealerships were still not being given the full picture of the vehicle’s history and condition, with less than 30% of its mystery shoppers shown the car’s service history. Without an idea of the car’s history, buyers are leaving themselves open to buying a vehicle with any number of problems.
“The BBC news report quoted HPI’s own figures, which reveal that 1 in 8 vehicles we check has a mileage discrepancy,” says Nicola Johnson, Consumer Services Manager. “The OFT report supports these figures, highlighting clocking as a very real threat to used car buyers. While the OFT concludes that existing laws are sufficient to deal with the issues raised, HPI is also helping consumers protect themselves by raising awareness of the potential used car buying issues and what to look out for.”
As well as clocking the risks outlined below are very real dangers faced by used car buyers, whether they are buying from a motor dealer or a member of the public.
Outstanding Finance
Outstanding finance represents the biggest risk for used car buyers. 1 in 4 cars checked with HPI are subject to an outstanding finance agreement. HPI is warning car buyers that if they unwittingly buy a car on outstanding finance, there is a very real chance that they will lose both the car and the money they paid for it, as the finance company still own the vehicle until the finance has been settled.
Changing Plates
1 in 5 cars checked by HPI customers have had at least one plate change, making it one of the most frequent ‘hits’ against all of the HPI registers. Usually there is nothing to worry about, but a change of plate can be used to hide a car's past. For example thieves in a stolen car may seize plates from another car parked on the street whilst police continue to search for the stolen car under its original number plate. Consequently an efficient fraudster can sell the car on before the stolen plates are reported. An HPI Check will also check the chassis number of the vehicle with the number plate highlighting any potential issues.
Stolen to order?
Police figures suggest that over 450 vehicles are stolen every day*, many of which are then sold on to unsuspecting buyers. This highlights the importance of an HPI Check as a tool to ensure you’re not one of those unsuspecting customers Another increasing problem is that many stolen vehicles are ‘cloned’ to disguise their identity so that they appear legitimate. HPI will investigate any stolen ‘hits’ with the police to verify the status of the vehicle. If this is confirmed as correct, customers are then advised to contact their local police force.
Increase in write-offs
It’s easy to be taken in by shiny paintwork and a low price, but with 790,000 vehicles written-off in the last ten years by insurance companies**, and 4 in 100 vehicles checked by HPI recorded as ‘written off’, it is evident that the unscrupulous will do anything to make a quick profit.
“These figures, combined with the OFT report shows that used car buyers need to protect themselves from unscrupulous sellers,” Johnson concludes. “Our hit rates highlight the areas buyers should be especially wary about, but keeping your wits about you, and getting an HPI Check can spell the difference between buying a banger or a bargain.”
To conduct an HPI Check, visit hpicheck.com.