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Buying a Car in the UK

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Publication date: 30.05.2024
Reading time: 11 minutes
Number of views: 171
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    Consultation, legal assistance
    5 £369.00

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    • A description of the situation requiring legal analysis is conducted.
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In general
5 £369.00

Buying a Car in the UK

Buying a car in the UK is an important step for many people, whether it's their first car or a replacement for an existing one. Choosing a car, financing, legal requirements, and insurance all require careful planning and knowledge of the market.

Buying a Car “Second Hand”

Before purchasing a car, it's essential to conduct a technical inspection to check its condition.

After a visual inspection, it's important to check the documents. In the UK, the main registration document for a car is the V5C Registration Certificate, which the seller must have. It's also worth asking the seller about the validity of the MOT (Ministry of Transport) test.

Perform an HPI Check on the car. This check is conducted by organizations with access to closed archives. The result is a report detailing any major repairs, the number of previous owners, mileage accuracy, whether the car is stolen, under a lien, or has similar issues. You can order this check online, but usually, honest sellers will already have this document ready.

After all checks, it's time to discuss the price. It's advisable to purchase an insurance policy in advance, as without it, the car can only be transported by a tow truck. Insurance can be arranged online or by phone. Not all, but many insurance companies allow you to cancel the policy and get a full refund within a certain period (usually two weeks). This is convenient because you can buy a temporary insurance policy, pick up the car, and then choose a more suitable one. Of course, you can only cancel the insurance if no claims have been made during its validity period.

Payment when buying a car “second hand” can be made by bank transfer, cash, or check.

After all inspections and checks, documents for registering the car are prepared. The V5C certificate has a special "sale" section that the previous (seller) and future (buyer) owners can fill out without a third party. After filling out, the form is signed. The seller keeps the part of the form related to the sale as proof of the transaction, while the buyer sends the other part to the DVLA (Driver and Vehicle Licensing Agency) by mail. They print a new V5C Registration Certificate and mail it to the new owner's home. Ownership change can also be registered online through the DVLA website (in this case, the form is filled out only by the seller). From the moment the form is filled out and signed, the deal is considered complete and the car can be taken.

Buying from Dealerships

At a dealership, you can buy a new or used vehicle online, at the lot, or at an auction. Overall, the process at a dealership follows the same steps as buying a car second hand. The only difference is that the HPI Check is always done in advance, and the registration form is sent online (with the buyer present). Note that cars at dealerships are often newer or brand new (see below).

Payment at a dealership can be made in cash or through a bank.

Buying at Auction

This option takes more time because you need to establish online contact with the seller, and the purchase can only be made through the website (which takes longer than the previous options). It's worth noting that in such cases, it's better to order the HPI Check yourself. Most sellers provide their contact phone number in the listing, so you can arrange a preliminary viewing of the car. If after the inspection you decide the car is suitable, you need to register for the auction. The auction winner makes the payment through the website and buys an insurance policy immediately.

If you win the auction, the new owner can go pick up the car, and the seller and buyer complete the V5C certificate.

The advantage of this option is that through special websites (e.g., eBay, Gumtree, etc.), you can buy a car cheaper, and payment can be made by card or cash.

Buying from a Car Showroom

The easiest way to buy a new car is from an official showroom. In this case, there is no need to conduct a preliminary technical inspection, which saves your time. Additionally, the showroom will prepare the necessary documents, and in case of any problems with the car (excluding accidents), you can get qualified help under the warranty period.

Necessary Documents for Buying a Car in the UK

To buy a car, you need an identity document, such as a passport or driver's license.

After concluding the deal, it's important to prepare a sales contract, which is a written agreement between the seller and buyer that includes the terms of sale, car information, and its price. The seller must hand over the V5C registration certificate to the buyer, who then sends it to the DVLA so the new owner can receive a new V5C. The buyer also needs to arrange an insurance policy for the car. If the car is over three years old, it must have a valid MOT certificate, confirming it meets EU standards.

On the "Consultant" legal marketplace, you can order a document verification service, including preparing the sales contract and vehicle registration certificate.

Note the mandatory (for all of the above purchase options) payment of Vehicle Tax. It can be paid on the DVLA website or at a local post office. Confirmation will be sent to your email or by mail and recorded in the database. If necessary, the police can check the tax payment status in real-time using the vehicle registration number.

Buying a car is a procedure with many nuances, especially when it happens abroad. Specialists working on the "Consultant" marketplace can conduct legal checks to identify potential restrictions or debts associated with the car (e.g., unpaid loans or liens), helping you avoid unpleasant surprises after the purchase. And, of course, a specialist will protect the buyer's rights, advise on the terms of the deal, and help resolve any disputes that may arise during the purchase process.

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