The Approved Code Scheme is operated by the Chartered Trading Standards Institute
02 APRIL 2025 : Chartered Trading Standards Institute.
Buyers of second-hand cars have a shaky understanding of their consumer rights, don’t know where to go to complain if they have a problem with a car they have bought, and value the peace of mind offered by trader vetting schemes, according to new research commissioned by the Chartered Trading Standards Institute (CTSI).
CTSI’s polling showed that two thirds (65%) of motorists aren’t aware of the difference in their consumer rights when buying a used car from a business – such as a car dealership or garage – as opposed to buying from a private individual selling their own vehicle on platforms such as Facebook Marketplace or Gumtree.
Just under half (43%) of motorists wrongly believe that they have the same rights to resolve problems with a car purchased from a dealership as from a private individual. More than one fifth (22%) of motorists said they didn’t know whether they had the same levels of protection. And just under a quarter of motorists (23%) incorrectly believe that buying second-hand cars from private sellers listed on online platforms such as Facebook Marketplace or Gumtree provides greater levels of protection than buying from private individuals directly; another quarter (24%) said they are unaware of their consumer rights in either circumstance.
When a UK consumer buys a used car from a private individual, they are only entitled to expect that the vehicle is roadworthy and as described. If, however, a used car is sold by a business, the buyer has statutory rights under consumer law, which can be more easily upheld and enforced.
CTSI’s polling also revealed widespread consumer confusion about what to do if things go wrong with a recently purchased used car. While just under two thirds (62%) of respondents said they would complain to the seller in the first instance, one third (35%) said they would also complain directly to Trading Standards, while just over a quarter (28%) said they would contact an Alternative Dispute Resolution (ADR) provider. However, Trading Standards services have no direct point of contact to address specific consumer complaints first-hand, and deal with cases referred to them by Citizens Advice.
Consumers with a complaint against a business should contact the Citizens Advice consumer helpline* if they are unable to resolve the matter with the business directly; however, just 21% of survey respondents said they would do this. A further 9% said they would complain on social media, while 7% said they would do nothing.
For consumers seeking reassurance and peace of mind when looking to buy a used car, four out of five (78%) said they would be more likely to buy from a business that belonged to a Trading Standards-backed certification scheme, while three quarters (73%) said they would be more likely to buy from a business registered with an ADR provider. Finally, just under one third (31%) said they would be more likely to buy a used car from a business which advertised on social media.
CTSI administers the Approved Code Scheme, which comprises expert Code Sponsors who vet and certify businesses across a wide variety of sectors. In the used car sector, those Code Sponsors include The Motor Ombudsman, the AA and the RAC – and the businesses which sign up as members must conform to the highest industry standards of customer service and best practice.
Approved Code Scheme members are also required to be registered with an ADR provider. If a consumer has a problem with a vehicle purchased from an Approved Code Scheme member, they can report it and, if necessary, enter into an ADR process to ensure a satisfactory outcome. If a business fails to meet its obligations under consumer protection law, it will be removed from the scheme.
Problems in the used car sector have long been a priority for Trading Standards. A recent case prosecuted by Kent Trading Standards resulted in guilty verdicts for a gang of criminals who ripped off consumers with a car-clocking scam. They tampered with the odometers of vehicles to wind back their combined mileages by more than two million miles.
Other recent Trading Standards cases have revealed the lengths that disreputable used car sellers will go to in order to trick their customers, with no regard for the dangerous implications of their actions. Last year CTSI called for the introduction of a licensing scheme in the motor vehicle sector to ensure higher standards of consumer protection and confidence.
CTSI Chief Executive, John Herriman, commented: “People need to be confident that the cars they buy are safe and accurately described, and that the businesses they buy them from are honest and responsible. Used cars have long been a problem area for consumer complaints, but now, with the high cost of living meaning people have less to spend, there is an added worry that they might be pushed into buying a vehicle that is not what it appears to be. There is a need for the Government to explore opportunities for legislative reform – including the exploration of a licensing scheme, which Scotland has recently introduced, and a greater push for mandatory ADR for businesses that sell used cars. For the sake of motorists, as well as for the many legitimate traders in the sector, it is important to promote trust and consumer confidence – Approved Codes are a powerful way of building and maintaining that trust.”
Sarah Coombes, MP for West Bromwich, said: “As a recent buyer of a second-hand car, I wasn’t prepared for how confusing the market would be. It is difficult to know what specific rights you have as a consumer, or where to go to complain if something goes wrong. It’s a scandal how many people are being ripped off by unscrupulous sellers, or taken advantage of. In the end I trusted a car dealer certified by the Approved Code Scheme, but I’d fully support action from this Government to introduce a licensing scheme to protect consumers further in this area.”
CTSI joint Lead Officer for the Automotive Trade, Robin Wood, said: “For many people, a car is unlike any other purchase. It is an essential requirement for their everyday living. Our advice is to look locally if you can and do your homework before you buy. Before you decide on a car, look at trusted reviews to ensure the car you want is suitable for the purpose you need. For example, a diesel car may not be suitable for only short journeys, or an electric one for longer ones. Online trader reviews can give an overall impression of the business, but beware of buying a car without looking at it properly or buying from businesses a long way from home.”
Chief Ombudsman and Managing Director at The Motor Ombudsman, Bill Fennell, said: “In 2024, we received nearly 200,000 contacts and around 35,000 newly opened cases from consumers seeking to resolve their dispute through the means of ADR, against a backdrop of the financial pressures faced by individuals during a cost-of-living crisis, and growing awareness of our organisation. However, in around half of cases, we were not able to review these disputes due to the business not being accredited to our Codes, or to any ADR provider. This highlights a growing urgency to provide greater coverage and protection by an ADR scheme for consumers when buying a vehicle – a significant emotional and financial investment for many."
Citizens Advice Director of Policy, Tom MacInnes, said: "Buying a used car is a big purchase, so when things go wrong it can have a huge impact on people's lives. Unfortunately, year after year we see more complaints about this consumer rights sector than any other. The Government needs to take a serious look at how to reverse this trend, with no options off the table."
Managing Director of AA Cars, James Hosking, commented: “Buying a car is a major financial commitment and people want to know there are protections in place if something goes wrong. The vast majority of drivers say they feel more confident buying a used car from a dealership accredited by an independent organisation, such as Trading Standards. This is why so many of our dealers sign-up to AA Cars Standard, as it comes with the additional approval of the Chartered Trading Standards Institute and gives peace of mind to their customers. Building consumer trust and loyalty is crucial in a market where the number of complaints are higher than most other sectors. Our impartial mediation service is another effective tool that can help do this, with 98% of customers satisfied with the outcome of disputes. We want to make the car buying process as easy and as stress-free as possible, and to do that consumers need to know how to find a reputable seller and where to go for support if and when issues do arise.”
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