Buying used car under 2500 GBP (RAC Approved dealer)

Investor_ISA_DCA

Let's be honest - this needs to be tailored to someone who cannot buy a second hand car (2500 GBP budget) from a friend or family member, neither has friends who are car mechanics. So this discussion is for those who side with the idea that buying privately is generally not safe, unless there is tangible social proof of the seller, known to be buyer.

I know there is this other forum on here that advised, quite cleverly, to not buy a used car from a dealer for under 2000-2500 GBP as they have to earn a mark up, and it is almost impossible to buy a good, reliable car for such little money, hence, either up your budget or buy privately. But what if neither is the option?

Why am I sharing this and hoping to get further insights?

I got scammed by a trader (should have done my research better to not go for a trader with 3.6 average star reviews and no google maps presence) when buying a car for 1500 GBP, advertised to be in fine working order, only to discover I had to replace the gearbox and the clutch a month later as the gearbox would jam making the car unsafe to drive.

SOLUTION:

So I came across this concept of buying a reliable used car from a "RAC approved dealer" which is supposed to see every "Eligible" car go through an 82 point checklist and the car should, by default, come with a 3 months warranty. 

Does anyone actually have experience with successfully executing a similar scenario? Is every single car "Eligible" or do I have to inquire? Just because the dealer is "RAC approved" does that mean that every single vehicle they sell is "Eligible" and "Approved" with the dealer having a written record of the 82-point checklist being carried out and addressed if needed (or is addressing optional, as long as it is disclosed to the buyer)?

Also, curiously, does the dealer have to pay money to "RAC" to become "RAC approved?". 

What's the catch then if all of the above is actually true? After browsing for such "RAC approved dealer" cars within my budget (which was very hard) I found that they are generally almost 100% more expensive (one could find plenty of equivalents on AutoTrader for pretty much half the price, i.e. 1100-1500 GBP). I suppose the catch is that the buyer pays a premium for peace of mind, which is fair, in my opinion, provided that it is actually peace.

Hoping to come up with a headache-free, bullet-proof solution/flowchart, as bullet-proof as buying a used peace of mechanical equipment can possibly be.

My go-away pointers for my future-self and others, to whom my knowledge and research might be helpful, boils down to those exact two points so far:


1) Buying for under 2500 GBP from a "RAC approved dealer", ensuring the car is actually 82-point checked and fixed if needed prior to sale, with written records of such. It might be tough, so be prepared to spend days looking around and be prepared to travel 50 miles for your car as most "RAC approved dealers" sell much more expensive cars - 6000 GBP + + +

2) Checking, that the same dealer in 1) above accepts credit cards for deposits to be protected in case one has to apply for a refund (something that I learned the hard way).


Any comments, further ideas?

P.S. After a lot of perseverance and lack of sleep and calling up every local and not so local garage quoting me anything from 800 to 3000 GBP in repairs I managed to get my hands on a second hand, accident-recovered-and-warranted gearbox and a new clutch which cost me 500 GBP with fitting using a local mechanic I found on facebook with no reviews who charged me low labour costs despite spending half a day doing the job (risky). I got very lucky this time as it's a small, cheap, widely available car. So in the end I am still, technically, within my budget (1500 in car costs + 500 repair costs + 150 GBP in train costs to get the car) but the stress was not worth it. 

Thank you!

ontheroad1970

Whatever you do, don't rely on "RAC Approved".  The dealer has simply purchased a package from RAC to license the use of their name.  At £2500 level you're better off going private listing and looking at the receipts of work done on such cars.  A car price at £2500 on a forecourt will likely be nearer £1500 elsewhere.  Any warranty is to be tempered with the age of the car concerned, as is the consumer protection.  

HillStreetBlues

ontheroad1970 said:

Whatever you do, don't rely on "RAC Approved".  The dealer has simply purchased a package from RAC to license the use of their name.  At £2500 level you're better off going private listing and looking at the receipts of work done on such cars.  A car price at £2500 on a forecourt will likely be nearer £1500 elsewhere.  Any warranty is to be tempered with the age of the car concerned, as is the consumer protection.  

One trouble with a private listing is if it breaks down on the way home little you can do about it unless you been lied too.

Ectophile

If you're buying private, don't spend all your budget on the car.  For example, if you have £2500, buy a car for perhaps £1700.  Take it to a trusted garage, give it a full service, and get them to fix all the important faults.  If the cost comes to less than £800, then you're within your budget.

chrisw

I can't comment on RAC approved, but there is a poster on Facebook called Dodgy Cars who highlights cars advertised for sale with hidden histories. A fair number of these are described in the adverts as AA approved.

MEM62

HillStreetBlues said:

ontheroad1970 said:

Whatever you do, don't rely on "RAC Approved".  The dealer has simply purchased a package from RAC to license the use of their name.  At £2500 level you're better off going private listing and looking at the receipts of work done on such cars.  A car price at £2500 on a forecourt will likely be nearer £1500 elsewhere.  Any warranty is to be tempered with the age of the car concerned, as is the consumer protection.  

One trouble with a private listing is if it breaks down on the way home little you can do about it unless you been lied too.

The reality is you may not get much better protection from a dealer.  At £2.5k level I would only be looking at private sales.  It is way to low to consider buying from a dealer.   

HillStreetBlues

MEM62 said:

The reality is you may not get much better protection from a dealer.  At £2.5k level I would only be looking at private sales.  It is way to low to consider buying from a dealer.   

You do as CRA 2015 applies with a dealer, even better if you can pay on credit card, that's one of the reasons you get some dealers passing themselves off as private sellers.
You can get more car for your money, most of my cars (always cheap) come from private sellers, but you can also get a total lemon with no recourse.

Investor_ISA_DCA

Thanks for comments and suggestions. This particular dealer, for example, Blenheim Cars Ltd, seems to stipulate in their listings that each car has indeed undergone an 82-point check and does come with a RAC Certificate. Would you say even that should be questioned and not trusted?

HillStreetBlues

Investor_ISA_DCA said:

Thanks for comments and suggestions. This particular dealer, for example, Blenheim Cars Ltd, seems to stipulate in their listings that each car has indeed undergone an 82-point check and does come with a RAC Certificate. Would you say even that should be questioned and not trusted?

If all the 82 points have been checked  will be an unknown,  but it does give you greater protection.
Having a 82 point check forms part of the contract when you buy the car, so for example

They’ll also make sure that:

• There’s no evidence of exhaust gas leaks.
• There are no fluid leaks from the engine, drive train, or fuel systems.
• There’s no visual evidence of faults to braking components.
• The brake pads have a minimum of 50% material remaining.
• The underbody doesn’t have excess corrosion and the chassis is free from extensive structural repairs.
• The transmission and driveshaft is secure & free from excessive play.

If you buy the car and find the brakes only have 25% remaining, then you have redress with the dealer as you bought the car with at least  50% remaining, that would go for any other item on the list if it didn't conform.

jimjames

HillStreetBlues said:

MEM62 said:

The reality is you may not get much better protection from a dealer.  At £2.5k level I would only be looking at private sales.  It is way to low to consider buying from a dealer.   

You do as CRA 2015 applies with a dealer, even better if you can pay on credit card, that's one of the reasons you get some dealers passing themselves off as private sellers.

Not much you can do if the dealer refuses to have anything to do with the car and shuts up shop to avoid any comeback. That sort of dealer won't take credit cards, but I doubt very many would at that end of the market.

HillStreetBlues

jimjames said:

HillStreetBlues said:

MEM62 said:

The reality is you may not get much better protection from a dealer.  At £2.5k level I would only be looking at private sales.  It is way to low to consider buying from a dealer.   

You do as CRA 2015 applies with a dealer, even better if you can pay on credit card, that's one of the reasons you get some dealers passing themselves off as private sellers.

Not much you can do if the dealer refuses to have anything to do with the car and shuts up shop to avoid any comeback. That sort of dealer won't take credit cards, but I doubt very many would at that end of the market.

 Certainty worth checking, as the example the OP gives  does take them.