Is it better to buy a used car from a dealer or a private seller?

A private sale is usually cheaper on the sticker price. A dealer purchase gives you legal protection that a private sale simply does not, and for most buyers that protection is worth the difference.

The legal position is the important part. Buying from a trader, you are covered by the Consumer Rights Act 2015: the car must be of satisfactory quality, fit for purpose and as described. If it is not, you have a short-term right to reject it within 30 days, and further rights after that. Buying privately, the standard is only that the car is as described — the seller has no obligation regarding its quality, and once you have driven away you have very little recourse.

What a dealer should also bring:

• An outstanding-finance and stolen check, so you cannot unknowingly buy a car that is not the seller's to sell.
• Preparation and inspection before sale, rather than a car sold exactly as it was driven in.
• A warranty, and somewhere to return to if something goes wrong.
• Part-exchange, so you are not selling your old car separately.
• Finance options, which are not available on a private purchase.

The genuine risk in a private sale is outstanding finance. If a car is still on a finance agreement, the finance company can legally recover it from you even though you paid the seller in good faith. It is worth paying for your own history check before handing over money privately.

Private sales suit confident buyers who can inspect a car properly, are buying something inexpensive, and accept the risk. For most people, most of the time, the protection is worth the premium.