When buying a used car, there are plenty of options to choose from. However, deciding which place is the best can prove to be challenging. The best place to buy used cars depends on your budget and the type of car you are looking for. In this guide, we let you know the pros and cons of each place to buy used cars. 

Whether you are looking for the protection of a franchised dealership or you want to save money by purchasing from a private seller, we explain what to look out for and the benefits to expect. By the end, you’ll know the best place to buy second-hand cars and how to purchase one with confidence.

Places to buy a used car

Some of the best places to buy used cars are a franchised dealership or supermarket. However, you don’t want to overlook the value of private sellers, auction houses, independent sellers and car brokers. 

Franchised dealerships

Franchised dealerships are affiliated with a specific car manufacturer. They will offer new cars from that manufacturer, as well as a variety of nearly new or used cars. The used cars may have been trade-ins from other customers looking for a new car. 

Car supermarkets

Car supermarkets are not tied to one specific brand, but offer a wide variety of new and used cars from multiple brands, allowing for competitive pricing. They are very similar to franchised dealerships, except for the brand-specific affiliation and associated benefits. 

Independent dealerships

An independent seller is a smaller dealership that is unaffiliated with any brand. They can sell whatever cars they want and usually offer a small number of choices. Some independent sellers now offer online-only purchases too, allowing you to purchase a car fully online and have it delivered to your door.

Private sellers

When an individual sells their car personally, they are referred to as a private seller. Buyers connect with sellers through online marketplaces and adverts. Private sellers choose this route because they can earn more money for their vehicle than when trading it in to the dealership. Check out our guide if you want to know how to sell your car privately. 

Auction houses

Dealers will often take the trade-ins to a local auction house, allowing other dealerships and private sellers to buy the vehicles through a bidding process. Some of these auction houses are not open to the general public, making it difficult for private buyers to enjoy the savings. 

Car brokers

Car brokers serve as a middle person between the potential buyer and seller. A broker helps buyers find cars at the best prices, especially when they are looking for something specific (features, budget or customisation). 

 

Franchise dealerships

Many people believe that the best place to buy used cars in the UK is through a franchised dealer, and it’s true that there are several advantages to this route, such as the reliability, customer service and ability to custom order. However, as used car dealers, the prices may be higher.

Pros:

Warranty: Nearly new cars may include a warranty backed by the original manufacturer. Even if the car is too old for a warranty, the dealer may offer special maintenance and repair packages for an additional cost.
Finance options: Getting a used car on finance is sometimes easier at franchises, allowing for more affordable payments. Franchises often offer hire purchase finance, personal contract purchase (PCP) finance, personal loans and leasing agreements.
Potential to get your desired preferences: Because you’re buying from an affiliated franchise, they can help you find the exact car you are looking for, including the colour and any upgrades you want.
Official approved used cars: Franchises must follow strict quality control practices to remain part of the affiliation, meaning you get more assurances when buying a used car.

Cons:

Higher prices: Compared with private sellers and independent dealerships, you are likely going to pay more from a franchise because of the warranties and added benefits.
Focused on brand-new cars: With new car targets to hit, the dealership may nudge you away from buying used and towards new, which isn’t ideal if you need to stick to a tight budget.
Limited negotiation: Franchised dealers are less likely to negotiate on price. They set prices based on what they expect you to pay, so there’s not as much opportunity to save money.
Fewer choices if it’s a one-brand dealership: Beyond the brand that’s represented, the franchised dealer likely won't offer a lot of other options.

Car supermarkets

Car supermarkets offer numerous brands, allowing for a wider choice. While there is more competitive pricing than with the franchise, you may experience diminished quality and limited warranty coverage.

Pros:

Wide selection of cars: Because the supermarket isn’t tied to one brand, there are more choices when buying a car.
Competitive pricing: Car supermarkets tend to have lower prices compared with the franchised dealership, offering more choices for someone on a budget. The higher inventory turnover and bulk purchases made keep the costs down for consumers.
Car finance options: There are plenty of finance options available at the car supermarket, though the best options will be offered on newer models.

Cons:

Less knowledge and personal service: The supermarket might offer less personal attention than the franchised dealer because they may not have as much knowledge about the vehicles. You may still get good customer service from a reputable supermarket, similar to what you may find at a smaller dealership.
Variable quality: Some of the vehicles may be in excellent condition, but there could also be some that aren’t well-maintained. It’s best to run a car history check and get a mechanic to look at any car you plan to buy.
Limited warranties: Warranty coverage may be limited or cost more in comparison with a franchised dealership. Used cars that are only a few years old may still have the factory warranty included, but they will also cost more to buy.

Independent sellers

An independent seller sells a variety of used vehicles from different brands. They are not tied to any manufacturer and so offer more flexible options. The prices are often cheaper and can be negotiated, but there can be fewer quality standards and not as many finance options. There is also limited aftersales service.

Pros:

Cheaper than franchises: Independent sellers often have lower prices than franchised dealerships because there’s no brand affiliation and fewer overheads, offering buyers a better deal.
More choice: These dealerships often carry various brands, so there’s a larger selection of cars to choose from. There is also a wider choice of colours, features and models.
Price negotiations: There tends to be more room for price negotiations with independent sellers as they are not affiliated with the manufacturer. This allows buyers to work out a better price.

Cons:

Varied quality and reliability: There are no manufacturer affiliations with this seller, so there could be a lack of quality control. Cars sold may require more maintenance or not be as reliable.
Fewer financing options: With more older cars being sold, there are limited finance options available. You may need to pay higher interest rates when compared with the larger dealerships.
Limited warranties: Warranty coverage may be limited because of the age of the cars. If there are faults found after the purchase, you would be responsible for the repair costs.

Private sellers

Buying a car through a private seller can be more affordable and direct, but there are some risks involved. Using car buyer and seller contracts can help to create a smoother transaction.

Pros:

Lower prices: Because there’s no dealer to work with, you can find the lowest prices through private sellers. There might also be room for negotiation to get a lower price.
Direct transaction: Buying directly from the owner ensures that you can ask questions about the car’s condition and history, giving you more information to base your decision on.
Quicker purchase: The time from when you view the car until you drive away is much shorter than if you went to a dealership.

Cons:

Limited finance options: Private sellers don’t offer payment plans or finance options, so you need to buy the car outright or arrange your own personal loan.
Higher risk of hidden issues: Because you don’t know the seller, you must decide whether you trust their reason for selling. There could be hidden issues with the car that you don’t notice initially. To alleviate your concerns, it’s best to have a third-party inspection of the car by a trusted mechanic before buying it.
Usually older cars: The cars sold by private sellers are generally older and require more maintenance. As there’s no warranty with these cars, you will be responsible for any unexpected repairs that occur after the purchase.

Auction houses

When shopping at an auction house, there are a large variety of cars and plenty of good deals. However, the auction moves fast, leaving little time for inspection, and there’s no way to return a car.

Pros:

Potentially great deals: Compared with retail prices, buying at an auction house is much cheaper. You can find cars for far less than they are worth.
Variety of vehicles: Car auctions offer a variety of makes, models and styles. If you are searching for something unique or a limited-edition model, you may have better success at an auction house than through a dealer.
Fast purchase: The purchase process is quick at an auction house, as long as you win the bid. You don’t have to spend a lot of time filling out paperwork or waiting for the dealer.

Cons:

Limited inspection time: Because the auction house moves fast, there’s limited time to inspect the car before bidding on it. If there are hidden issues, you may not know about them until you are driving the car home.
No return option: There’s no option to return the car, unless otherwise stated. Once you buy the car, you are responsible for any repair and maintenance costs.
Uncertain vehicle history: You may not know the car’s history before bidding on it, again leaving you with possible repair costs.

Car brokers

The car broker is an intermediary, helping buyers to find a specific vehicle and negotiate the price. They offer a personalised service and can save time, but they also charge additional fees and cut the buyer out of the process.

Pros:

Personalised service: The broker works directly with the buyer, so they gain a deep understanding of what you are looking for. A broker can find a specific car with the desired features within a buyer’s budget.
Access to better deals: Car brokers often have industry connections, so they can secure better deals and discounts that may not be available to the average buyer.
Saves time: With the broker doing the majority of the work, you save a lot of time. You don’t have to do the research, negotiate the price or perform the search.

Cons:

Additional broker fees: A broker’s services are not free. There will be an additional charge for the service, so this needs to be weighed against the time you are saving.
Less control over the process: Those who prefer a hands-on buying experience should be aware that the broker doesn’t offer this. There’s minimal buyer involvement with the selection and negotiation process when using a broker.
Potential bias in relationships: Brokers secure better deals by having good relationships in the industry, but this could also lead to bias.

Buy a used car from MOTORS

MOTORS is the best place to find second-hand cars for sale if you are looking for a hassle-free shopping experience and the lowest prices. Our online platform gives you access to all the cars in the area that match your wants and needs. Whether you are after nearly new cars or used models, you can customise your search to narrow down the choices and find the car that’s right for you.

Frequently asked questions

How do car dealership franchises work?

Car dealership franchises act as an authorised seller for a particular brand. They carry new, nearly new and approved used cars. These dealerships offer high-quality cars at higher prices, but buyers have more access to finance options and warranty coverage.

What are my rights when buying a used car from a private seller?

When buying a used car from a private seller, you have limited rights. There’s no warranty offered and you can’t return the car. You also need to pay for the car outright because finance options aren’t normally offered. It’s important to have the car inspected by a mechanic and to run a vehicle history check before buying.

Is it worth going to a car auction?

Car auctions can provide access to low-cost cars and offer a great experience if you want a quick process. While it can be worth it, there are also some risks involved, such as limited inspection times and a lack of warranty, leaving the buyer to pay for any potential repairs.

Should I use a car finance broker?

A car finance broker is a great option if you don’t have time to search for the car you want. They have access to great deals and do all the legwork for you. However, there will be more fees involved as the broker needs to charge for the service, and you will have less control over the selection and buying process.

What is the difference between a broker and a dealer?

The dealer has cars for sale and helps you find what you are looking for on their lot. The broker can search out car deals among several locations and will negotiate the deal for you, working as an intermediary. Instead of you shopping around, the broker does it for you at an additional charge.

Steve Edwards
A certified car nerd who has been creating car content since 2015, Steve is much happier talking about used cars under £15,000 than the latest hypercar. He’s been advising friends and family on their next used car purchase for as long as he can remember – handy experience for his current role in charge of content at MOTORS. As a father of two young kids who covers a lot of miles, he tends to value safety, practicality and comfort above all else, so he has a soft spot for massive SUVs and premium estate cars.
Article published December 9th, 2024