One of the most common car buying scams involves dealers disguising themselves as private sellers to avoid their legal obligations. Here's how to spot it and what to do if you've been caught out.
Why Dealers Pose as Private Sellers
When you buy from a dealer (trader), you're protected by the Consumer Rights Act 2015. The car must be of satisfactory quality, you have a 30-day right to reject, repair and replacement rights, and a 6-month presumption that any fault existed at sale.
When you buy from a private seller, your protection is much more limited. You're only covered if they misrepresented the car or didn't have the right to sell it.
The difference is huge. Unscrupulous dealers know this – so they pretend to be private sellers.
How the Scam Works
The "Private Seller" Listing
The car is advertised on Facebook Marketplace, Gumtree, or Auto Trader as a "private" sale. You meet at a residential address (often not theirs), pay in cash, receive no paperwork, invoice, or company details, and they tell you they're "just selling my own car."
The Reality
They're actually trading in cars as a business. They buy cheap cars at auction, give them a quick cosmetic clean-up, sell at a profit, and move straight on to the next one. This cycle of buying and selling is trading, not private selling.
When It Goes Wrong
You discover faults and contact the "seller." They claim it was a "private sale, buyer beware, nothing I can do." You're left with a faulty car and apparently no rights – which is exactly what they planned.
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How to Spot a Disguised Trader
Red Flags Before Purchase
Multiple cars for sale – check if they have other listings. Look for the same phone number appearing on multiple ads, or different cars being sold from the same location.
The meeting location – if they want to meet at a random car park rather than their home, the address doesn't match the V5C, or they're reluctant to show where they live, be suspicious.
Their knowledge – someone who's very knowledgeable about cars (more than a typical private seller), has professional cleaning or valeting equipment, and talks like a dealer probably is one.
The paperwork – no service history or documents, a fresh MOT done just before sale, and a recently changed V5C are all warning signs.
Their availability – if they're available at any time as though it's their job, respond quickly, and have a practiced sales patter, they're likely doing this commercially.
Questions to Ask
- "How long have you owned this car?"
- "Can I see the V5C with your name and address?"
- "Why are you selling?"
- "Do you sell cars often?"
Watch for evasive answers.
Digital Checks
Search their phone number online – does it appear on other car ads? Check their Facebook profile to see if they're sharing car-related content constantly. And reverse image search the listing photos to see if they're used elsewhere.
Your Rights If You've Been Scammed
They're Still a Trader
Here's the important bit: if someone is trading in cars as a business, they're a trader under law – regardless of what they claim.
The test isn't what they say. It's what they do.
Evidence They're Trading
Gather evidence that they're actually a trader. Screenshot their other car listings, record their ad history, note the frequency of sales, search Companies House to see if they're a registered business, and check social media for photos showing multiple cars.
Consumer Rights Apply
If you can prove they're a trader, the Consumer Rights Act 2015 applies in full. You have the same rights as buying from any dealer – a 30-day rejection right, right to repair or replacement, and the right to reject after failed repair.
Misrepresentation Claims
Even if they somehow aren't trading, if they lied about the car's condition that's misrepresentation. You can claim under the Misrepresentation Act 1967, and this applies to private sales too.
What to Do If You've Been Caught
Step 1: Gather Evidence
Screenshot their other listings, save all communications, document the fault, get an independent inspection, and search for evidence of their other sales.
Step 2: Write to Them
State that you believe they are trading in cars as a business, that the Consumer Rights Act therefore applies, that you are rejecting the car, and that you require a full refund.
Step 3: Report to Trading Standards
This is potentially criminal. Contact Citizens Advice Consumer Service on 0808 223 1133 – they'll pass it to Trading Standards, who can investigate and prosecute.
Step 4: Consider Court
If they refuse to refund, you can take them to small claims court. Present your evidence they're a trader and the judge will decide based on the facts, not their claims about being "private."
The "Sold As Seen" Defence
They might claim the car was "sold as seen" – which supposedly removes your rights.
This is nonsense.
"Sold as seen" has no legal effect when buying from a trader, consumer rights cannot be excluded, and it's just words – not a legal defence.
See our full guide on sold as seen myths.
Recommended reading
Prevention: Spotting Scams Before Purchase
Insist on Proper Paperwork
Get a full invoice with the seller's name and address, see the V5C in their name at that address, and get a proper receipt.
Meet at Their Home
If they won't meet at the address on the V5C, walk away. Verify they actually live there.
Do Your Checks
Get an HPI/history check before purchase, check their phone number for other ads, and trust your instincts. See our guide on red flags when buying used cars.
Pay Securely
Bank transfer leaves a paper trail. Get their bank details, which reveals their real identity. Never pay in cash to strangers.
The Bottom Line
Dealers posing as private sellers is a common scam designed to strip you of your consumer rights. What matters legally is what they do, not what they claim – if someone regularly buys and sells cars for profit, they're a trader. Gather evidence of their trading activity if you suspect a scam, because the Consumer Rights Act still applies if they're actually trading. Report to Trading Standards because this can be criminal fraud. And remember that "sold as seen" means nothing when buying from a trader – your statutory rights cannot be excluded.
Bought from someone you now suspect was a dealer in disguise? Check if you qualify for our rejection service – we can help establish your rights.
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