Investigation launch: Scotland's used car sector

Consumer Scotland is launching an investigation into the used car market, a sector where too many buyers face unexpected problems, costs, and stress when things go wrong.

For many households, a used car is essential for work, family, and daily life, but it can also be one of the most financially and emotionally demanding purchases. Second-hand car buyers now engage with a rapidly changing market, shaped by online and distance sales, complex finance options, and the transition to low-emission and electric vehicles.

While most transactions go smoothly, thousands each year end in frustration, with reports of faulty cars, misleading information, and poor after-sales support that make problems hard to resolve. Data from Advice Direct Scotland shows persistently high complaint levels, and national evidence ranks second-hand vehicles among the UK’s leading causes of consumer harm[1]. The combination of rapid, disruptive change and strong demand for high value used goods exposes consumers to possible risks, such as potentially hidden problems from previous use, unclear histories and complex consumer rights.

Together, this highlights the need for clearer information, stronger protections, and fairer outcomes for buyers across Scotland.

The investigation will focus on the consumer experience within the used car market in Scotland and will allow us to build a clear, evidence-based picture of those experiences. It will identify the most harmful issues faced and propose practical recommendations – whether for policy, regulation, or industry practice - to strengthen fairness, transparency and confidence in the used car market, and to help drive meaningful change in a sector that matters to households across Scotland.

The investigation will follow four main strands to build a clear picture of consumer experiences in Scotland’s used car market:

• Research – We will commission independent research to understand how consumers buy used cars, what challenges they face, and how confident they feel about their rights
• Analysis – We will analyse complaints data from Advice Direct Scotland and other partners to identify key patterns of harm and where protections may fall short
• Deep Dives – We will explore real consumer cases in more detail to uncover the barriers people face in seeking redress and resolution
• Stakeholder Engagement – We will work with industry, regulators, and consumer organisations to test findings, share insights, and shape practical recommendations for a fairer market

We are keen to hear the views of stakeholders from across the sector and beyond, such as:

• Consumer advice, advocacy and enforcement bodies
• Trade associations, industry representatives and those involved with dispute resolution
• Any other person or body that can assist with our evidence and recommendations in this market

We are particularly keen to hear from those with evidence of:

• Diverging standards or practices across different types of traders (e.g. franchised vs. independent dealers vs. online platforms)
• Causes of consumer detriment (e.g. issues with misdescribed or poor quality vehicles, vehicle histories, vendor checks and warranty issues)
• The adequacy of existing standards, consumer protections and quality assurance, including business advice and enforcement capacity
• Remedies and redress when things go wrong, including the routes to redress, the adequacy of those options and any complexity caused by involvement of various parties (e.g. traders, finance companies, warranty providers and ombudsmen schemes)

This call for information will remain open until 12 December 2025. To hear more and/or provide your views, please get in touch with us via email: usedcarinvestigation@consumer.scot

Please note, Consumer Scotland does not give individual consumer advice or investigate consumer complaints. For advice about the market or to make a complaint about a trader, please contact Advice Direct Scotland or call 0808 164 6000.

Consumer Scotland is the statutory and independent body for consumers in Scotland. We were established by the Scottish Parliament under the Consumer Scotland Act 2020 (the Act) to advocate on behalf of consumers and represent consumer interests. The Act sets out our five key areas of focus:

• Reducing harm to consumers
• Increasing consumer confidence in dealing with businesses that supply goods and services
• Increasing the extent to which consumer matters are taken into account by public authorities
• Promoting the sustainable consumption of natural resources and other sustainable practices
• Advancing inclusion, fairness, prosperity and other aspects of wellbeing in Scotland

Under Section 4(2) of the Act, Consumer Scotland can undertake investigations by into sectors or practices which it considers cause, or may cause, harm to consumers, or otherwise for the purpose of fulfilling our general function. Under Section 15 of the Act, Consumer Scotland must publish a report on the findings and recommendations of any investigation - and send a copy of this report to Scottish Ministers.