Buying a used car? Check it don t regret it!

Transcription

1 Buying a used car? Check it don t regret it! Autumn 2013

2 Introduction This briefing provides an introduction to the often problematic issue of buying a used car, and explains how you and your organisation, in partnership with other organisations, can help consumers make some basic checks before buying a used car, and avoid many of the common pitfalls. A car is often one of the most expensive purchases a person makes in a lifetime. Many individuals and families depend on cars to get to work, to do the school run, to get to supermarkets where they can access reasonably priced goods, and to visit friends and family members. In some rural communities and for some people, cars are essential to daily living. So finding a car that is safe, legal, and that fits the bill is of huge importance. Yet, there are many things that can go wrong with a used car purchase. Used cars are the biggest single issue being reported to Citizens Advice consumer service it deals with over 80,000 used car problems a year. When things go wrong, the impact can be catastrophic. Unsafe cars can lead to accidents and injury, while buying an illegal car or a car that has been misrepresented and breaks down within weeks can mean a family who have spent their savings or gone into debt to afford a car are left without a means of transport and with no prospect of being able to afford one. The knock-on impact can affect work and family life and leave people struggling to get by. The week beginning 4 November 2013 is National Consumer Week, and we re using the week to launch a month-long campaign to raise awareness about buying a used car. You can use this opportunity to work in partnership in your area to help educate consumers about used cars. Activities and promotional work during this month will help consumers to become more savvy when it comes to used cars, and support yearround efforts to support consumers with the important decisions when buying a car. We ll be reminding consumers: Check it, don t regret it, when it comes to used cars.

3 Used car market context Some key points regarding the used car market are highlighted below. Used car sales 6.7 million used cars were sold in Dealers (franchised and independent) sold 3.74 million, private-to-private sales sold 2.63 million and 0.3 million sold through other routes (e.g. auctions). The average used car value was 5,336 in The ratio of used car sales to new car sales is rising. The typical used car is now older and has a higher mileage. Most car buyers buy used cars second hand cars consistently account for more than around 75 per cent of all car sales by volume. Context Struggling economy, falling household incomes, high inflation. Lower new car sales since the onset of the recession in Cars being kept longer before being re-sold / scrapped. Improvements in build quality cars last longer than before. Where sales take place away from the seller s home or place of business, it s hard to tell if dealer or private individual and difficult to obtain redress. For more detail on these statistics, or for sources, please contact [email protected].

4 Profile of used car consumers Age: younger consumers (under 44) are more likely to buy used cars than new. Gender: Similar proportions of men and women opt to buy a used car rather than a new one. Income: lower income consumers more likely to buy used cars than new Region: 84 per cent of car buyers in the West Midlands buy used cars, 82 per cent in East Anglia, and 75 per cent buy used in Yorkshire/Humberside, the East Midlands, Wales and the South West. Sixty per cent car buyers in Scotland and London buy used cars. Choosing a used car key considerations Top three: price (41 per cent), low mileage (31 per cent), make/model (30 per cent). Others: age (14 per cent), safety (8 per cent). Choosing a dealer key considerations Top three: getting a good deal (33 per cent), the right car at the right price (29 per cent), the opportunity to trade-in (19 per cent). Trends Rise in cars (used and new) bought by consumers on finance through dealerships. Increasing importance of online research 86 per cent of car owners start their research online. Before use of the internet became widespread car buyers used to make five or more dealer visits, today they only make 1.3 visits on average.

5 Most common problems with buying a used car Used cars are the single biggest problem being reported to the Citizens Advice consumer service. These problems break down as follows: Seventy three per cent of consumers contacting our consumer service about used car sales were asking for advice about faulty cars. This is the most common problem. Our campaign aims to highlight some ways in which you can check the condition of a car prior to purchase, to avoid this problem where possible. The second most significant level of complaints concern misleading practices, which account for over 12 per cent of enquiries on used cars. The main issues consumers needed help to resolve were: Verbal mis-descriptions (nearly 42 per cent of enquiries about misleading practices). Misleading advertising (nearly 25 per cent of enquiries about misleading practices). Incorrect or incomplete pre-purchase information (19 per cent of calls about misleading practices). Failure to provide full information (12 per cent of calls about misleading practices). Our campaign highlights the question is it what it seems to encourage consumers to be aware that used car sales people may attempt to mislead them. The third most common enquiry is sub-standard services relating to used cars. Over six per cent of the total complaints on second hand cars fell into this category. Our campaign doesn t directly address this issue, though you may wish to in your local work.

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7 Key campaign messages There are many considerations to take into account when purchasing a used car. Unfortunately, we can t capture them all on a postcard or poster, so in our campaign materials we re targeting people who are about to buy a used car and we ve stuck to some basic checks that can be carried out before purchase. For more detailed information and guidance we are directing people to Check it don t regret it! Is it safe? Legal? What it seems?

8 Make a few simple checks before you buy or you may regret it later: Check MOT certificate indicates if car is roadworthy. Check service history shows if car has been maintained. Check V5 registration document shows if car is stolen. Check if car is a write-off helps you know what you are buying. Check finance history ensures car doesn t have an outstanding hire purchase agreement. Test drive and walk around check for signs the car isn t what it seems. Get engineer s check shows condition of car and any hidden dangers. Check price value guide indicates reasonable price to pay. Check car is not recalled shows if car was recalled for safety reasons by manufacturer. You can do many of these checks yourself, or there are companies that offer data checks which include several of the checks listed above, such as HPI, the RAC and the AA. For more detailed information and advice on how to make these checks, go to or visit your local CAB. You may decide that you wish to extend these messages or vary the messages in order to use your own existing materials or areas of expertise. For example, you may wish to highlight a buyer s consumer rights and rights to redress after buying a used car. You may wish to inform people that if they wish to discuss a dodgy trader or need help to complain or take action having bought a used car they are unhappy with, they can contact the Citizens Advice consumer service on

9 How can you get involved? The week beginning 4 November is National Consumer Week, but the used cars campaign will continue throughout November See it as an opportunity to highlight the issue of used cars and raise awareness on the importance of making some basic checks before buying a used car.

10 Preparation Ideally, Citizens Advice Bureaux and Trading Standards will work together to lead on awareness-raising activities throughout the month. Together look for case studies in advance to highlight the dangers around buying a used car, decide and plan your activities, and talk to all potential partners about your plans and timeline. This is a good opportunity to review the data sharing process between bureaux and Training Standards. Ideas for activities Here are some suggestions for campaign activities, ranging in complexity: Put the Check it, don t regret it posters up in your public areas, such as waiting rooms, reception etc. Make postcards available in your bureau. Invite people to tell their stories. Highlight Check it, don t regret it messages on noticeboards and electronic displays. Send a press release to the local media a model version is available at Use an footer to promote the Check it, don t regret it message. Promote the issue of used cars at every meeting of trustees, managers, staff and volunteers during the month. Get the Check it, don t regret it message on the front page of your website. Get a slot on a local radio station highlighting the Check it, don t regret it message and use case studies to highlight the misery that buying the wrong used car can cause. Take out an ad out in your local paper s used car classified section, to highlight the campaign. Involve students from your local college s motor vehicle and mechanics courses see if they will help with events and education. Work with reputable used car sellers, MOT providers and garages in the region, asking them to display the campaign posters. Used car road show set up a stall at a public venue. Libraries, schools and colleges, shopping centres, sheltered housing/care homes, lunch clubs, community centres, are some examples. Model flyers are available to publicise your event.

11 Contact your MP/MPs/AMs/MSPs to highlight the month and/or meet to discuss ways of improving joint working and information exchange throughout the year use case studies to support your arguments. Contact your local road safety officer and invite them to support the campaign. Local councillors help local councillors/community leaders set up wa workshop which they can hold in community centres in their ward. Use Twitter and Facebook accounts as a channel for instant messaging on used car issues (see key messages above), Use #usedcars in all your messaging and see our social media guide at for suggested standard tweets. Run a simple survey asking what used car problems people have experienced to give you useful statistics to highlight priorities in your work. Share results with stakeholders and local used car sellers. Target specialist local publications such as council newsletters, housing association newsletters, police magazines. Contact the motoring correspondent for your regional paper, and contact any local motoring magazines or classified vehicle sections in local publications. Training: run used car awareness training download materials from Plan and carry out a media campaign to last throughout the month. Send used car awareness resources to other frontline workers in the region to educate their consumers/clients about used cars. For example, send a copy of this briefing and some postcards/leaflets to: local housing officers, police officers, Jobcentre Plus, road safety officers. You can download materials from

12 Tell us about your involvement Whatever you do during National Consumer Week, or throughout the month of November to promote the Check it, don t regret it message, let us know by ing us at [email protected]. If you have an queries about this resource, or the campaign, please contact [email protected].

13 Citizens Advice Myddelton House Pentonville Road London, N1 9LZ Telephone: Citizens Advice is the operating name of The National Association of Citizens Advice Bureaux. Registered charity number