Where do most people buy cars?

There’s a lot of excitement when you decide to take the plunge and buy a new car, but there is now so much choice when it comes to handing over your money and collecting the keys.

Buying a car in the UK is split between traditional dealerships and garages and more digital options. But which option will work best for you? Every driver is different but you should probably have the following three factors at the forefront of your mind:

• Price - Can you afford the car, insurance and all the running costs/MOT/servicing etc
• Protection - Will the car be under any sort of warranty when you buy it?
• Convenience - Is the dealership or seller easy to get to or will you try and get the car delivered to your home if buying online?

The government’s latest Car Ownership Evidence Review stated the following:

Purchasing and selling locations

Evidence on where people choose to buy and sell cars is limited. However, survey data from 2019 suggests that most people buy newer cars (under 7 years old) via dealerships and a 2023 survey of AA members suggests dealerships are the most popular way of selling used cars.

• The National Franchised Dealers Association (NFDA) ‘Consumer Attitude Survey’ (2019) found that 75% of car purchases, for cars under seven years old, were made at franchised dealers; 14% at independent garages; 5% at used car supermarkets and 5% from private sellers.11 (NFDA, 2019)
• When considering only brand-new cars, 93% were bought at franchised dealerships (NFDA, 2019) . • When the NFDA survey asked where consumers were likely to buy their next cars, 63% selected ‘franchised dealer showroom’ (NFDA, 2019).
• The AA (2023) asked panellists from their Driver Poll how they planned to sell their cars in the future. Just over half of respondents answered ‘via dealerships’ (51%), while 28% were unsure, and 14% intended to sell privately (AA, 2023).

Where is the best place to buy a new car?

If you’re looking to buy a brand new car, you might be best off heading to a brand dealership. These will have the latest models with extremely low mileage and you can use broker sites like Carwow to help source dealership discounts (a brand new car can be very expensive, after all).

Although the prices of these cars are set to be high, you may be able to enjoy benefits including manufacturer warranties, the latest in-car technology and car finance packages tailored to you.

Where to buy a used car: Dealership vs private sellers

There are even more options if you’re in the market for a used car, but you will have to consider if you want to put more emphasis on the level of protection you receive for your purchase versus how much you’re willing to pay for the vehicle.

• Buying from a dealership - Whether franchised or independent, all dealerships have to abide by the Consumer Rights Act 2015. This means you’re entitled to a full refund if a fault emerges within 30 days of purchase. The dealer will also have to prove there wasn’t a problem with the car if you experience issues within the first six months (although, as always, it’s worth checking the small print here). This extra protection is reflected in the higher cost.
• Private sales - You may see a sign stating ‘sold as seen’. This means the responsibility sits with you if there are any issues after you’ve paid for the car. While the price of the car may be cheaper, you will lose this extra protection so it’s always important to see a full vehicle history check, take a test drive and prepare the right questions before committing.
• An independent garage - These are often viewed as the ‘middle ground’ between a dealership and private seller. They’re likely to have a wide range of makes and models, although conditions can vary. This might be reflected in the price. Keep an eye out for a Good Garage Scheme badge or Retail Motor Industry Federation (RMIF) affiliation to ensure the garage is up to industry standards.

Our comprehensive guide to buying a used car covers what to check in more details.

How do you buy a car online?

For those of a certain age, buying a car online felt like a pipe dream - why would anyone purchase a vehicle without actually seeing it in real life - but now it’s an increasingly popular option.

The reasons for this change are because companies like Cinch let you browse, select, arrange your preferred finance option, and pay for the car with ease. There’s no hard sell for things you might not need after you’ve made your decision and they’ll sometimes even deliver the car right to your door, complete with some form of warranty (again, read through the terms and conditions with a fine-tooth comb). This convenience is shown in the prices though.

Old favourites like AutoTrader and online marketplaces including eBay motors are also increasingly popular. They pull together stock from private sellers, dealers and franchises, giving you the option to search by various filters including:

• Make
• Model
• Mileage
• Price
• Distance from your postcode

Our guide to buying a car online offers further guidance.

Where to buy your first car

After passing a driving test (or maybe before if they’re taking private lessons in their own car; just don’t let them forget their learner driver insurance), one of the most exciting things the new driver will do is buy their first car.

This isn’t an easy decision to make as it’s a significant amount of money, especially once you factor in insurance and running costs. This means the first decision should be around budget. Just how much is this new driver going to pay and are they preferred to focus on reliability and a low insurance group over style and speed?

Things to factor into this decision include:

• Does this car have a full service history?
• Has it been regularly maintained?
• Can you afford an independent inspection before buying?

You’ll find first cars in all of the places mentioned so far, but it might be worth looking for dealers who specialise in small cars. If you know someone who knows the red flags to look out for, it might be worth taking them with you for a test drive before purchasing. You can take out temporary car insurance so they can get a feel for the wheels.

You could also head to a car auction, but it’s best if you - or the person you attend with - has extensive mechanical knowledge as you’re unlikely to get the chance to fully inspect the car.

You also might see cars for sale on social media Marketplaces, but remember if it looks too good to be true that might just be the case. Beware of scams and false descriptions. You should always view in person and don’t pay any money before you’ve seen the car.

What checks should I do before buying a car?

1. Perform a free DVLA MOT history check via the government’s website
2. Check the vehicle is taxed using the DVLA’s free tool
3. If the car is older or cheaper than you’d expect, it could be worth paying for a HPI to confirm it isn’t written off, stolen or subject to outstanding finance

What do you need to drive your new car away today?

Once you’ve decided where to buy your car from - the final choice will be personal preference but try to think of the pros and cons and your own situation before making the decision - you’ll need to prepare to collect it.

When you’re picking up your new car, you need to make sure it’s taxed and has insurance. If you need a little more time to find the right annual policy, you can get temporary car insurance from 1 hour to 28 days - and there’s no waiting around once you have the policy. It will start at the time you suggested.

Once you’re insured, you can get on the road and start making more memories in your brand new car.

Sources

https://assets.publishing.service.gov.uk/media/6781339100e3d719f19217f1/dft-car-ownership-evidence-review.pdf

https://www.gov.uk/check-mot-history

https://www.gov.uk/check-vehicle-tax