Is This Car Dealer Legit?

How to Check if a Car Dealer is Legitimate

Before buying a car, especially from an independent dealer, it's important to do your homework. Rogue traders cost UK consumers millions every year through mis-sold vehicles, hidden defects, and outright fraud.

What to Check Before Buying

• FCA Registration: If they offer finance, they must be authorised by the Financial Conduct Authority. Selling finance without authorisation is illegal.
• Companies House: Check if they're a registered company, how long they've been trading, and if they have any red flags like frequent director changes.
• Reviews: Look at Google Reviews, Trustpilot, and AutoTrader reviews. Be wary of dealers with very few reviews or only recent 5-star reviews.
• Physical Premises: Do they have a proper forecourt or operate from a residential address? Meet at their business address, not "halfway".
• Trading Standards: Check if they're members of any approved trader schemes like Trading Standards "Buy With Confidence".

Red Flags to Watch For

• Dealer insists on cash payment only
• Won't provide paperwork or receipts
• Pressures you to decide immediately
• Won't let you have the car independently inspected
• Company is very new or has been dissolved and re-formed
• Multiple businesses registered at the same residential address
• Mixed or suspicious online reviews

Why FCA Registration Matters

If a dealer offers car finance (PCP, HP, or personal loans), they must be authorised by the Financial Conduct Authority (FCA). This gives you important protections:

• Access to the Financial Ombudsman if things go wrong
• The dealer must follow strict rules about affordability checks
• The finance company is responsible for the car's quality on PCP and HP agreements
• The FCA can take action against rogue dealers

What If the Dealer Has Closed Down?

If you bought on finance and the dealer has since closed, you may still have options. On PCP, HP and conditional sale the finance company legally supplied the car, so your claim runs against them even if the dealer has gone. This is another reason why FCA registration and buying on finance can actually protect you.