Buying from a dealer - advice and tips

The price

Dealers' prices tend to be higher than private sellers, although they may be open to haggling.

If you're trading in a car, remember to concentrate on both sides of the deal - you need a good deal on the car you're buying AND on the trade-in price.

Check what the price involves, too - does it include VAT, road tax and so on?

Dealers might give you a discount if you pay cash up front - and they might also give you one if you arrange any finance, such as a loan, through them. If you do go for dealer finance, make sure you check the APR and total cost of credit - ignore any "flat rate" that's quoted.

Your legal rights

When you buy from a dealer, the car must be:

• of satisfactory quality - taking into account how old it is and how many miles it's done,
• as described - so the dealer must answer any questions truthfully, and
• fit for the purpose - so it should be capable of being driven safely.

(When you buy privately, the car only need be "as described").

The dealer is also obliged to run certain checks on the mileage, the car's condition and to make sure the car isn't stolen.

If a used car turns out not to meet these requirements, you can reject it (if you act quickly) or claim for the cost of repairs.

These rights are on top of any warranty you buy - and warranties are another advantage of buying from a dealer. They will cover the costs of repairs for a certain period (but check what's covered).

Watch out for unscrupulous dealers

Opt for an established dealer with a good reputation - ask around friends or colleague for recommendations. Make sure they are a member of a trade association, such as the Retail Motor Industry Federation or Scottish Motor Trade Association.

Some dealers are in schemes - such as Ford Direct or Vauxhall Network Q - which offer car checks, warranties and 30-day exchange options.

Should you buy from a dealer?

There are lots of advantages of buying from a dealer, such as warranties, finance options, and extra rights if the car has any issues. But you're likely to pay more than if you bought the same car privately.