Everyone is looking for a good deal when buying or selling a car. The seller wants the best price they can get, and the buyer wants a great car at the right price.
Those looking to trade in vehicles might hope the odd scratch or dent goes unnoticed and doesn’t affect their asking price, while at the other end of the scale, criminals might try to offload vehicles that have been written off, have been stolen, or are buying a vehicle to launder money.
With the sums and risks involved, motor traders must be on their guard and know what to watch out for.
Why safe transactions matter for car dealers
Motor traders rely on their reputation for supplying good-quality vehicles at the right price. They need to make sure the vehicles they are buying and selling are up to standard and that financial transactions are safe.
Autotrader’s tips for safely buying cars offer simple checks that can prevent motor traders being seriously out of pocket.
The first is to always check the paperwork. They need to be sure that the vehicle registration number, vehicle identification number, engine number, and colour, match the vehicle’s logbook. The logbook’s watermark should also be verified to make sure it is genuine.
A vehicle history check will show whether the vehicle has been recorded as stolen, scrapped, written off, or has outstanding finance, as well as making sure any recalls and MOT requirements are up to date. The mileage on the dashboard should also be compared to service and MOT records.
As well as test-driving the vehicle for any obvious issues, it’s worth getting a mechanic to look over it for any major or hidden problems.
Common risks when buying and selling cars
One of the biggest risks to motor traders buying cars is being misled about a vehicle’s status or condition.
If they are tricked into buying a stolen car, the vehicle remains the property of the original owner or insurance company if a claim has been paid out, and when the vehicle’s true identity is discovered, the dealer will either have to hand back the vehicle and lose money, or pay for it a second time.
Similarly, they need to make sure that the vehicle is in good condition and runs well so that they aren’t left with expensive repair bills before they can sell it.
Another major concern is vehicles being bought with fraudulent transactions. Motor traders need to know the identity of buyers and sellers involved in all purchases and sales, which must comply with money-laundering regulations.
There are also risks to personal safety to consider, especially during test drives, when traders are alone in the vehicle with potential buyers.
Top safety tips for buying and selling vehicles safely
Autotrader also has the following advice to ensure sales go safely and smoothly.
Before making any deals, make sure all the relevant paperwork is complete to give you the full picture of the vehicle you are looking to buy. Any contradictory details or paperwork that doesn’t look right should be seen as a red flag. While criminals can forge documents, seeing the full record means you are more likely to spot something out of the ordinary.
It is also important to meet buyers and sellers. Those who are genuine will want to view a vehicle before buying it, and they will also be happy to provide details such as the full name and address, landline number, etc.
When they are viewing the vehicle, car dealers must make sure they are supervised at all times and cannot tamper with the vehicle in a way that could affect the sale price.
Motor traders should always accompany potential buyers on a test drive. They need to produce their driving licence and make sure they are covered by the motor trade insurance to test drive the car. In the event of a collision or any damage, this covers the dealer for the cost of any repairs.
And finally . . .
It might seem obvious, but do not hand over the vehicle, the keys or documents until the full payment has cleared in your bank account.
When it comes to test drives, make sure you take the keys out of the ignition when you change seats and make sure you are in an area you are familiar with. Never allow a buyer to test drive the car alone or leave them alone with the vehicle.
If the vehicle has a keyless fob, the motor trader must keep hold of it at all times. Otherwise, it only takes a few seconds for someone posing as a buyer to drive off with the vehicle and the fob.
And above all, personal safety has to come first. Motor traders should not put themselves in a position where they feel at risk, whether it is a potential buyer’s manner of driving, or they become confrontational or threatening.
