Summary report: Consumer challenges in Scotland's used car sector (HTML)

This summary report highlights the main findings, evidence and recommendations from Consumer Scotland's investigation into the used car market in Scotland.

It is intended to provide an accessible overview of the investigation findings, including why the market matters, what the evidence showed as the main issues, and what actions are recommended to improve outcomes for consumers. 

For a fairer used-car market in Scotland, consumers need:

Consumer Scotland selected the used car market for investigation because pre-launch evidence pointed to persistent consumer detriment in a high-value sector. National consumer detriment survey evidence identified second-hand vehicles as a significant source of harm, and Advice Direct Scotland (ADS) data showed that used cars were consistently at or near the top of consumer advice cases.

The investigation was designed to understand the nature and scale of that harm, the main causes of disputes, and whether existing rights, redress routes, regulatory arrangements and industry standards support good outcomes for consumers.

Evidence that pointed to consumer harm

The investigation examined: 

• the scale and trends within Scotland’s used-car market
• consumer experiences before, during and after purchase
• common problems identified through advice and complaints evidence
• how rights and redress work in practice
• whether standards, licensing and enforcement arrangements support consumers

Consumer Scotland undertook this investigation through its statutory role to identify consumer harm, assess how markets are working for consumers in Scotland, and make evidence-based recommendations to improve consumer outcomes.

The used car sector was selected because pre-launch evidence pointed to recurring consumer detriment in a high-value market, with potential for financial, practical and emotional harm.

Consumer Scotland investigation evidence base

Six evidence sources were bought together and tested against each other to build a rounded picture of consumer harm.

This section summarises the market context from the full report, drawing primarily on Consumer Scotland analysis of used-car transaction data for 2020-2025 from the Society of Motor Manufacturers and Traders. The data helps show why problems in this sector matter. Even a relatively small proportion of problematic transactions can affect a large number of consumers.

• The average number of used car sales in Scotland since 2020 was 589,000
• There were 3.54m used car transactions between 2020 and 2025
• The indicative annual market value in Scotland is around £9.6bn annually

Consumer Scotland commissioned independent research with 1,002 recent buyers of used cars in Scotland. The survey gives a broader view of the market than complaints evidence alone, because it includes consumers with positive experiences as well as those who encountered problems.

Key survey findings:

• 87% viewed the car in person before buying
• 90% said their experience met or exceeded expectations
• 29% experienced an issue causing detriment
• 53% reported an issue during or after purchase
• 95% carried out some pre-purchase research
• 70% of respondents chose based on price

A broadly positive market experience 

Almost all respondents did some pre-purchase research, most commonly online or through friends and family. 

• Many sought advice on buying with confidence or understanding consumer rights, but some relied only on unverified advice/information sources.
• Most respondents viewed the car at the trader’s premises before buying, suggesting in-person inspection is important even if search journeys begin online.

Issues were common enough to matter 

Just over half of respondents reported at least one issue during or after purchase. While many issues were resolved, this still points to a significant risk of detriment in a high-value market. The survey also found that 29% experienced an issue causing detriment, meaning an issue that cost money, caused stress or took time to resolve.

Rights awareness was generally positive, but uneven 

Respondents generally felt aware of their rights and many felt confident about seeking advice or complaining. Awareness was lower for some groups, including rural, lower value and older-car buyers. This reinforces the need for clear, accessible and trusted guidance before and after purchase.

Quotes from survey respondents

“Made me lose sleep and affected my mental health.”“Unexpected repairs led to unplanned costs and disrupted my routine, especially when I needed the car for work or daily travel.”

“I trusted the seller and got answers to all my questions in a timely and truthful manner.”

“I live in a rural area, and a car is [the] only reliable means of transport. It is imperative for my everyday living that I have a reliable car.”

While the consumer survey gives the broadest picture of recent used-car buyer experiences, Advice Direct Scotland case analysis provides a different view: what happens when some problems become serious, unresolved or contested enough for consumers to seek advice. For this investigation, Consumer Scotland analysed 745 cases where consumers sought advice about their used-car purchase.

• 57% of recorded trader-type cases involved independent traders
• 32% of recorded trader-location cases involved traders in England
• 80% of sampled cases arose within the first sixth months 

Distance sales can make redress harder

Independent traders and cross-border purchases:

• Cross-border sales: Around 1 in 3 recorded trader-location ADS cases involved traders based in England highlighting that detriment is not confined to Scotland.
• Consumers buy at distance because of choice, lower prices and access: Some buyers travel or buy partly remotely to widen options or reduce cost.
• Our survey and ADS data align: Distance buying was more common among rural and independent-trader buyers, and linked to lower satisfaction.
• Implication: Clearer advice is needed before purchase on complaints, repairs and ADR.

Escalated cases centred on faults and disputed remedies 

The ADS evidence shows that many cases involved more than minor dissatisfaction. Consumers often sought advice after a vehicle developed a fault, became unusable or required repair work, creating repair costs, loss of transport and uncertainty about responsibility. 

Independent traders featured prominently in the sampled ADS cases. This does not show outcomes across the whole independent sector, as ADS cases only reflect consumers who sought advice. However, within the sample, independent traders were associated with higher levels of major faults, remedy refusals, misleading descriptions and court escalation.

Cross-border and distance sales 

Around a third of sampled ADS cases with a recorded trader location involved traders based in England. This shows that detriment affecting Scottish consumers can arise beyond Scotland. 

Consumers may travel or buy partly remotely to access choice or lower prices, but distance can make return, repair, inspection and rejection more difficult. Survey evidence supports this: distance purchasing was more common among rural respondents and independent-trader buyers, and was linked to lower satisfaction.

The full report explains that the Consumer Rights Act 2015 provides the core legal framework for used car sales by traders.

The issues identified by the investigation are not the absence of rights, but how difficult they can be to apply in practice when a second-hand vehicle develops a fault. 

• Satisfactory quality: The key test is that used cars must be of satisfactory quality, i.e. what a reasonable person would consider acceptable, taking account of description, price, age, mileage, history and other relevant circumstances
• Fit for purpose and safe: A vehicle should be capable of normal use as safe and reliable transport, and fit for any specific purpose made known by the consumer to the trader
• As described: The vehicle must match the description, advertising and key information provided by the trader, including condition, specification and history

Satisfactory quality is the key test

For used cars, the standard of satisfactory quality is highly contextual. The goods have been used and will naturally come with wear-and-tear and unclear histories. 

A lower-cost older vehicle will not be assessed in the same way as a newer or more expensive vehicle. However, consumers should still be able to expect a vehicle that is safe, drivable, reasonably durable and not materially different from what was represented at sale.

Relevant factors include the vehicle description, price, age, mileage, history, advertising and public statements.

Durability matters - but is often an area of dispute: the vehicle should last for a reasonable period considering all relevant circumstances. 

Warranties add protection, but do not replace statutory rights.

Remedies depend highly on timescales 

The remedy available depends on timing and circumstances. The short-term right to reject is particularly important, but many disputes arise after the first 30 days, when repair, replacement, price reduction or final rejection may become relevant. A key consumer protection is the six-month burden of proof. If a fault appears within the first six months after purchase - it is for the trader to prove that the fault was not present at the time of sale.

• Within the first 30 days, consumers may be able to reject a vehicle that does not conform to the contract
• After that period, the trader normally has one opportunity to repair or replace the vehicle
• If repair or replacement is unsuccessful or not provided, the consumer may be able to reject the vehicle or keep it with a price reduction

A simplified statutory remedies timeline for cars not of satisfactory quality

• 0-30 days - short-term right to reject: A consumer may be able to reject the vehicle and receive a refund where it does not conform to the contract
• After 30 days - Repair or replacement: The trader normally has one opportunity to repair or replace the vehicle before further remedies apply
• If not resolved - Final rejection or price reduction: If repair or replacement is not successful, the consumer may be entitled to reject the vehicle or keep the car with a price reduction
• First 6 months - Burden of proof: This period is important, but disputes can still arise about diagnosis, evidence and responsibility

The full report finds that consumer rights are important, but they do not always translate into a quick or practical remedy. Once a used-car fault is disputed, consumers may face evidence problems, delay, cost and uncertainty about who is responsible.

• Evidence: A consumer may be able to reject the vehicle and receive a refund where it does not conform to the contract
• Responsibility: The trder normally has one opportunity to repair or replace the vehicle before further remedies apply
• Delay: If repair or replacement is not successful, the consumer may be entitled to reject the car or keep the car with a price reduction
• Cost: This period is important, but disputes can still arise about diagnosis, evidence and responsibility

The gap between rights and remedy

The ADS case analysis shows a recurring gap between what consumers expected to happen when a fault arose and  what happened in practice. Consumers often sought help after a trader refused, delayed or disputed a requested repair, refund or rejection. Bridging this gap requires better information, stronger standards and clearer redress. 

Evidence and diagnosis

Used-car disputes often depend on technical evidence. Consumers and traders may disagree about whether a fault was present at sale, whether it reflects wear and tear, and what evidence is needed. Inspections and expert reports can be costly, and delays can leave consumers without transport. Trader evidence suggested that cars are increasingly complex products and that consumer expectations should align with modern realities of the issues.

Complex routes to resolution

Redress can become harder where consumers must deal with several organisations, including traders, finance providers, warranty providers, ADR bodies, advice services or courts. Finance and warranty cases can be particularly confusing where consumers are unsure who is responsible or whether warranty terms affect statutory rights.

Distance and vulnerability can intensify harm 

Distance, lower-value purchases and limited financial resilience can make problems worse. Cross-border or distance purchases can make return, inspection, repair and rejection harder, while the impact is greatest for consumers who rely on their car for work, caring responsibilities or essential journeys.

Used cars create an expectation gap

Consumer expectation and trader context can differ with consumers seeking reliable everyday use and clear remedies while the wider context may be that the condition of the vehicle is variable and wear and tear may emerge.

Advice case evidence shows how used-car disputes can quickly move beyond a technical disagreement about a vehicle fault. Problems can affect household finances, transport, work, caring responsibilities and confidence in the complaints process. 

The full report finds that ADR, recognised codes and trusted trader schemes can help turn consumer rights into practical outcomes. However, access is uneven across the used-car market, particularly where consumers buy from smaller or independent traders.

• ADR: Alternative Dispute Resolution can provide an important route short of court where trader complaint handling has not resolved the issue
• Coverage: Access is inconsistent where participation is voluntary or linked to membership of a code, trade body or scheme
• Codes: Codes of practice and trusted trader schemes can set clearer expectations, but only where they are visible and understood
• Standards: Practical guidance is needed so traders apply consumer law consistently in real-world used-car disputes

ADR as a practical route to redress

• ADR can support earlier resolution and more consistent outcomes where consumers know how and when to use it
• The new ADR framework strengthens the policy context and creates an opportunity to improve consistency and accreditation
• Stakeholders also reported pressure on ADR systems, including more complex evidence and increasing case volumes

Uneven access across the market

The report highlights that ADR is not equally available across the used-car sector. Access can depend on trader membership of a code, trade body, finance route or other scheme. 

This is particularly relevant for independent trader disputes, where sampled ADS cases showed serious faults, contested remedies and limited access to structured complaint processes.

Where ADR is unavailable, consumers may be left with advice, negotiation or court action, widening the gap between rights and enforceability.

Codes and trusted trader schemes

Codes of practice and trusted trader arrangements can raise standards and provide clearer expectations for traders and consumers. Their impact depends on coverage, awareness and signposting at the point of sale and when complaints arise.

• Codes can set standards on complaint handling, ADR, advertising, vehicle information and trader conduct
• Consumers may not know whether a trader is part of a code or what protections membership provides.
• Wider uptake among independent traders and new licence holders could help reduce inconsistency across the market

Clearer standards for trader conduct

The report also points to the need for practical guidance for traders on how consumer law applies in everyday used-car sales, including satisfactory quality, durability, warranties, finance agreements, distance sales and complaint handling.

• Clearer guidance should support responsible traders and reduce avoidable disputes
• Better signposting could help consumers identify complaint routes and understand when ADR may be appropriate

The full report finds that Scotland’s regulatory and standards framework is broad but fragmented. Civic licensing of second-hand dealers remains important, but it has not kept pace with the modern used-car market, including online and multi-site retailers. Local trading standards services are central to prevention, compliance and enforcement, but their resources are critically limited. As a result, responsibilities are spread across several bodies, leaving consumers with gaps in protection. 

• Enforcement capacity is constrained: Scottish trading standards evidence identifies compliance gaps, including pricing, distance-selling information, cancellation rights, complaints and ADR signposting. Resource pressures on local services limit routine proactive checks and market surveillance.
• Licences give limited consumer assurance: The “fit and proper person” test can exclude unsuitable traders, but does not consistently assess trader competence, complaint handling, consumer law knowledge or future compliance. Consumers may therefore overestimate what a licence means.
• Licensing has not kept pace: Scotland's second-hand dealer licensing framework was designed for a more local and analogue market. The report finds it is not well aligned with modern consumer risks such as online sales, cross-boundary trading, faults, complaints and access to redress.
• Coordination can be improved: The report identified the need for a prompt overall review of civic licensing. At present there is inconsistent local authority practice, limited intelligence sharing and unclear routes for raising concerns, particularly where traders operate online or across boundaries.

Second-hand vehicle dealer licensing

How the current framework compares with a more consumer-focused modern approach

The investigation found that Scotland’s used-car market works well for many consumers - but when problems arise they can cause serious financial, practical and emotional harm.

The full report makes ten recommendations. To make the actions easier to navigate, they are grouped around three main opportunities for impact: better information, stronger standards and clearer redress. Together, these changes are intended to reduce avoidable disputes, improve trader practice and make it easier for consumers to resolve problems when faults arise.

Better information

Consumers and traders need clearer, more practical information on rights, remedies, warranties, finance responsibilities and distance sales including:

• Practical guidance on used-car rights and remedies
• Strengthening consumer advice case intelligence on used-car complaints
• Updated business guidance on distance and cross-border sales
• Stronger support and protections for consumers in vulnerable financial circumstances

Intended impact: Better-informed decisions, fewer avoidable disputes and clearer expectations when faults arise.

Clearer redress

Consumers need complaint and redress routes that are visible, trusted and easier to use, particularly where disputes involve independent traders.

• Improved access to ADR
• Dissemination of Trading Standards Car Dealer Project findings
• Wider uptake of recognised motor industry codes of practice

Intended impact: Earlier resolution, better complaint handling and fewer consumers left relying on court action.

Stronger standards

Licensing, enforcement and oversight need to keep pace with online, cross-border and modern used-car sales.

• Examination of subprime motor finance pricing and access
• Wider reform of Scotland’s civic licensing framework as a priority
• Best-practice licence conditions for second-hand vehicle dealers

Intended impact: Consistent standards, better prevention and protections where consumer risks are greatest.

How the recommendations fit together

Clearer information should reduce avoidable disputes; stronger standards should improve trader practice; and more accessible redress should help consumers resolve problems earlier when faults arise.

The recommendations identify the organisations best placed to lead each action, with others supporting delivery where needed. Lead bodies are expected to consider the recommendation, agree proportionate next steps with relevant partners, and support practical progress over the short to medium term. This table summarises the action and intended consumer benefit.

The full report concludes that Scotland’s used-car market works well for many consumers, but that when problems arise they can cause serious financial, practical and emotional harm. The recommendations are designed to support a market where consumers have clearer information, traders understand and meet their obligations, and routes to redress are easier to access.