Cloned cars and forged documentation are all too common in the second-hand car market, according to consumer groups.

Richard Headland, of Which? Car magazine, says: “The more you look into the used-car market, the murkier it gets. It is a minefield for consumers. Many people simply have no idea whether or not what they are buying is legitimate.”

Here we identify the main pitfalls when buying a second hard car and how to avoid them.

Stolen and cloned cars

More than 170,000 cars were stolen last year, the Home Office says. If you buy a stolen car, you risk losing the vehicle and your money as the police can take a stolen car from you to return it to the original owner or the insurance company. You will not receive any compensation, even though you bought the car in good faith.

Car cloning is another problem. This involves stealing a car and changing its identity before selling it on. Criminals replace the numberplates and vehicle identification number (VIN) with the identity from a legitimate vehicle of the same make, model and colour.

Cloning can also have serious consequences for the owner of the original, legitimate car, because they can find themselves held responsible for speeding or parking tickets in places they have never visited.

How to avoid being caught out

Check the vehicle registration document (V5C). Buyers should not proceed with the sale until this document has been produced and they have examined it carefully.

Buyers should check that numbers on the V5C match the car’s number plate, engine number and VIN, which is usually found in the engine compartment. Make sure that none of the numbers have been tampered with.

If you do inadvertently buy a stolen or cloned car, you are likely to run into problems when making an insurance claim.

Niki Bolton, of eSure, the insurer, says: “If the vehicle was stolen, this would be identified when a policyholder made a claim. While we would cover all third-party costs, it is unlikely that we would pay for any damage to the vehicle because it is not the policyholder’s property.”

If a vehicle has a numberplate starting with Q, which means that the identity of the vehicle is unknown or it has been built using several used parts, it will be very difficult to obtain car insurance.

Cars owned by a credit company

Helen Saxon, of the Finance and Leasing Association, the trade body, says: “If money is owed on a car by a previous owner, the car still belongs to the finance company and can be taken from the new owner at any time. This is why it is very important to get a vehicle check on any used car you are considering buying.”

What to do

Checks, which can be carried out online or over the phone, cost about £20 and tell the buyer if a vehicle has been stolen, cloned, written off or has any outstanding finance. They normally include a guarantee.

Defective cars

Common problems include a leaky gearbox and faulty clutch. Clocking, where the mileometer is turned back to reduce the number of miles shown, is a big problem and costs consumers £100 million a year, according to the Office of Fair Trading. If the mileage appears low but wear and tear on the car looks heavy, there is a chance that the car has been clocked.

What to do

Check MoT certificates and service documentation for mileage readings. Previous owners named on the V5C should be able to tell you what the mileage was when they sold the car.

It is also important to research the market value of a car by using a website such as Parkers.co.uk. If you are paying less than 70 per cent of the market price, the car is more likely to be defective, stolen or cloned.

Write-offs

It is also important to check if a car has already been “written off” by an insurance company. If a vehicle has been declared a total loss, or write-off, it has almost certainly been involved in a big accident. Many can be repaired safely, but others will always be unsafe.

Write-offs have four insurance categories: A and B refer to very damaged vehicles that should not be allowed back on the road, while C and D generally refer to older vehicles with minor damage that can be repaired.

What to do

Ian Crowder, of the AA, says: “If you go ahead with the purchase, you must tell your insurer. It may not affect premiums, but you are likely to receive very little if you make a claim. Also perform, or pay for, a mechanical inspection — an MoT certificate is not sufficient — to ensure that the car has been repaired to a high standard. The vehicle’s market value will have been reduced considerably, so do not pay the full price.”

Know your rights

Consumer rights depend on whether the car is bought from a dealer, at auction or privately.

If buying from a dealer, you are covered by the Sale of Goods Act 1979, which states that goods should be of satisfactory quality and fit for purpose. If they are not, you can demand redress.

Look for an established dealer with a good reputation and make sure that it is a member of the Retail Motor Industry Federation, which offers a conciliation and arbitration service. Consumer Direct recommends choosing a dealer with a quality-checking scheme, such as Ford Direct or Vauxhall’s Network Q.

You can find bargains at auction or privately, but you may not be covered by the Sale of Goods Act and have little hope of redress if something goes wrong. The buyer enters into a contract with the owner of the goods, not the auctioneer, and it can be difficult to track down the owner later.

Mr Headland says that consumers should also be wary when buying privately. “Many traders pose as private dealers to shirk their responsibilities to the customer,” he says. “If you do buy privately, always say that you are calling about ‘the car’ and be wary if the seller asks ‘which one?’. Make sure that you view the car at the seller’s home, not a public place, and that the seller's phone number does not appear in several advertisements.”

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