Find out how you can import, buy and register a car in the UK and get ready to explore the country’s historic glory on your own set of wheels.
If you’re thinking about buying a car, there’s a lot to think about. Buy new or used? Should you buy from a car dealer, broker or private seller?
Fortunately, this article on buying and driving a car in the UK explains all the relevant rules and how to get the best deal on a new or used model. Here you will find important information about:
Buying a car in the UK
It’s fair to say the British love their cars and there’s no sign of the love affair fading. In fact, there are now more cars on UK roads than ever before. Indeed, at the end of 2021 there were 32.7 million cars licensed for use, an average of 1.2 cars per household.
However, the COVID-19 pandemic has reduced demand for cars due to quarantines, travel restrictions and work-from-home directives. Indeed, the Society of Motor Manufacturers and Traders (SMMT) reported that sales were down 28.7% in 2021 compared to pre-pandemic levels. However, with 1.65 million new cars sold annually, the UK remains the third largest new car market in Europe.
Who can buy a car in the UK?
Buying a car in the UK shouldn’t be a problem if you can provide a home address. In addition, there are no residency requirements for foreign nationals wishing to purchase a car in the UK. However, you will need a UK address to register, tax and insure your car. And the legal driving age in Great Britain is 17.
Buying a new car in the UK
Although most British households own at least one car, some consider car ownership an unnecessary expense. For example, if you live in one of the big cities, you may find that public transportation can meet all your needs. After all, you can quickly hire a car for occasional trips to the country or the coast. In addition, parking in cities can also be difficult, unpleasant and expensive.
But if you cannot do without your own car, then you will have to decide whether to buy a new one or, as the English say, a used one. New cars have a long warranty. They’re also more likely to be equipped with the latest fuel-saving and safety technologies. However, there are plenty of used cars in the UK and almost new models can be bought at great discounts from reputable dealers. Also, buying a used car can be a quicker option to get on the road, as some new models can have long queues.
If you decide to buy new, you’ll need a valid driver’s license and car insurance before driving. Then the main franchise dealer will take care of all the necessary documents; including vehicle registration, which will require proof of your identity, address and insurance. The UK Government provides an online guide to the processes you need to follow.
How to pay for a new car
Dealers will want to discuss payment options with you and offer to arrange financing. But do not rush to make a decision. Your options include using cash or a credit card, a personal loan from the bank, installment plans, a personal lease, or financing from the car manufacturer or dealer.
It’s important to remember that UK car finance is a complex market, so it pays to shop around. Independent consumer magazine Which? has a helpful guide to negotiating the best finance deals and discounts. It indicates that most dealerships are willing to bargain to secure a sale. It also shows that sometimes buyers can get a bigger discount by taking a dealer finance package.
MoneyHelper also provides a guide to the many options and how to shop around to find the best deal. You can also use an online comparison site to pick the best deals available at the time. Some of the most popular price comparison sites include:
Where to buy a new car in the UK
Car dealerships
According to CarDealer magazine, there were approximately 5,000 franchise car dealerships in the UK as of the end of January 2021 . So wherever you live in the UK, you’ll never be far from one. Indeed, it’s likely that you’ll be able to find major dealers nearby that sell brands such as Ford, Vauxhall, Volkswagen, Kia and Toyota. For example, there are 360 Ford dealers in the UK alone. This is useful when it comes to getting the best price and finance package as you can play dealers against each other.
However, even if you’re looking to buy a new car from one of the more obscure manufacturers, you shouldn’t have any trouble finding a dealer. In addition, they are often located in groups, making it easy to visit several franchises in one trip.
Some of the largest car dealers in the UK include:
Car brokers
If you want to avoid the hassle of finding and negotiating a deal, you can contact a broker. Automotive magazine Auto Express explains that a good broker can make the process easier.
In theory, the broker will be an expert negotiator and should be able to get a big discount. One important thing to know is that you don’t have to pay a broker to get a car. In return, reputable brokerage firms charge dealers a small percentage for representing the client. Auto Express also warns that the level of service varies, so it’s worth checking what the broker offers before signing up.
While it’s easy to find car brokers online, it’s hard to find an independent guide to who offers the best service. Which? suggests searching for a broker online and checking customer reviews on forums such as MoneySavingExpert to get details on previous customer experiences.
Some of the biggest car brokers in the UK include:
Buying a car online
Buying a new car from the comfort of your own home is becoming increasingly common in the UK. Indeed, there are several suppliers that allow you to choose and order exactly the car you need at a good price. They include:
The process depends on the company. For example, Buyacar offers a phone line, while Carwow does not. The latter also works similar to a large broker, where he supplies you with a car at a good price and you pay him, not the dealer. Both Carwow and Autoebid are online only and offer the best prices from all over the country. Then you must close the deal. Meanwhile, some car manufacturers sell directly from their website, which means that there is no possibility to bargain.
According to The Car Expert , the top 10 websites to buy a new or used car online in England are:
Buying a used car in the UK
Drive past any car dealer in the UK and you’ll find that there are plenty of used and almost new cars available. Indeed, in the first nine months of 2021, Britons bought an estimated six million used cars , close to pre-pandemic levels.
The main factor driving demand for used cars in the UK is price. This is due to the fact that new cars usually depreciate by 20% as soon as they leave the showroom. In fact, according to What Car? , new cars can lose up to two-thirds of their purchase price in just three years.
The reliability of used cars has improved in recent years, and many are now sold with a multi-year manufacturer’s warranty. Lease Fetcher comparison tool provides a useful guide to the average car price in 2021 and highlights the difference between buying new and used. The average price of a new mid-size hatchback such as the VW Golf is £21,964. Meanwhile, a similar study of used car prices, published by CarDealer magazine , found the average price of a used car to be £19,254, while the average price of a mid-size hatchback was £14,418.
If you do decide to buy a used car, a full range of payment options should be available.
Where to buy a used car in the UK
Car dealerships
Which? published a comprehensive consumer guide to buying a used car . It compares the experience of buying from a manufacturer’s franchised dealer versus an independent dealer that specializes in used cars. It also suggests the best models and highlights what to look for to avoid buying a problem car.
There are thousands of dealerships in the UK and they vary in size; from those selling a few cars in a small area to huge national operators with thousands of cars. Most dealers offer finance packages and warranties and will make sure you meet all legal requirements before you drive off.
The Automobile Association (AA) is a long-standing membership organization offering a full range of services to motorists, including roadside assistance and vehicle inspections. Non-members can find approved dealers where experts have inspected cars for quality.
CarDealer magazine lists the top 50 used car dealers in the UK by the number of cars they have in stock. Here are some of the big names to look out for:
Buying a car from a private owner
Private car sales are booming in the UK. And according to Auto Express , buyers can benefit from lower prices by buying privately rather than through a dealer. There are also many good deals. However, at the same time, the magazine emphasizes the associated risks. These include reduced legal protection if something goes wrong and no warranty. However, buyers can take steps to ensure they are not being scammed.
You can search online and try sites like eBay or Gumtree to find cars for sale privately. Alternatively, you can search for well-known specialist journals such as:
What to pay attention to when buying a car privately
Citizens Advice provides a helpful step-by-step guide on how to avoid potential pitfalls when it comes to buying a used car in the UK. For example, carrying out some simple checks will reduce your chances of buying a car that is being sold illegally or after major repairs. And it doesn’t take much time or cost much. You can also find out if the current owner still has money for the car.
In addition, you should ask the seller for the car’s registration number (on the license plate), MOT number, mileage, as well as the make and model. You can then use the DVLA’s free online vehicle information check to ensure that what the seller is telling you matches the DVLA’s records.
It is also important to ensure that you receive the original logbook (V5C registration certificate) and a valid MOT document. In fact, you should never buy a car without a logbook.
It’s also a good idea to get a private background check, sometimes called a background check. This will cost up to £20 and will tell you whether:
- the car was reported stolen
- the seller still owes the car
- the car had previously been in a serious accident
- it shows the correct mileage
- the car was scrapped , repaired, and then returned to the road
Buying a used car online in the UK
Online used car sales have soared during the UK’s COVID-19 lockdown. If you choose to go this route, it’s good to know that many companies offer services that include finding, financing and delivering a car to your home entirely online.
Fortunately, there are legal protections for customers who choose to buy a car online, and the AA has a very useful guide to all the laws that apply to buying and selling a car. In essence, customers who buy online have the same rights as those who buy in person at a dealership. It is useful to know that you can cancel the order from the moment of placing the order up to 14 days after the delivery of the car. You then have another 14 days to return the vehicle. You must receive your refund within 14 days of the dealer receiving the vehicle.
Many brick-and-mortar used car dealers only offer online services. Some specialized online used car dealers include:
Car registration in Great Britain
All vehicles in the UK must be officially taxed and registered with the Driving License Agency (DVLA) . Dealers should walk you through the processes you need to follow in order to be able to drive the car. They will also tax and register the vehicle for you and send the necessary completed forms to the DVLA.
It is noteworthy that if you buy a car from a private seller, you will have to prepare the documents yourself. AutoTrader magazine provides helpful guides on all the required paperwork.
Obtaining a maintenance certificate
It’s important to know that if your car is three years old or older, you’ll need a Ministry of Transport (MOT) certificate to prove it’s roadworthy . In addition, the maximum penalty for driving without a valid license is a £1,000 fine.
Cars sold by dealers must always have a valid maintenance certificate, but you must renew it annually. Thousands of garages and repair shops can issue certificates, and the maximum fee is £54.85 ; although you will find many that offer a better price.
The UK Government provides a useful online guide with everything you need to know about buying a used car. In particular, you should ensure that you have the car’s registration number, make, model and MOT number. You will also need to see the vehicle’s V5C registration certificate, commonly known as a log book.
To make sure you’re buying a safe car and complying with all legal requirements, it’s a good idea to check that:
- The information you have provided matches that of the DVLA
- You know the status and maintenance history of the car
- Do you know if a vehicle has been recalled due to safety issues?
- It is not listed in the logbook of stolen cars
The cost of a car in the UK
As in other countries, the cost of a car in the UK varies significantly depending on the make, model, engine type and size. Below are some of the main costs you need to keep in mind.
Vehicle tax
The UK has a complex system of car taxation , which encourages drivers to buy models with the highest fuel consumption and the least pollution. Tariffs depend on the age of the car and CO2 emissions. They range from £0 to £2,245 in the first year of registration. There is also tax on cars with a price tag of £40,000 or more, which is not charged on zero-emission cars.
You can find out the relevant tax rate for any vehicle for free on the Car Tax Check website by entering the registration number. Dealers will also report the tax payable on the new car. However, you can also check this yourself using the online UK car tax calculator .
Car insurance
It is important to understand that in Great Britain it is illegal to drive a car without prior insurance . There are three main types of coverage: minimum injury coverage, third party damage coverage, and comprehensive coverage.
The motor insurance industry in the UK is extensive and well established and competition is fierce. Therefore, you should always look for the lowest premiums and the best coverage. There are also numerous comparison sites to help you find the best option.
Premiums depend on the type of coverage, the make and model of the car, the age of the driver and the driving experience. The location of the home is also a factor. In October 2021, figures from the Association of British Insurers showed that the average comprehensive premium was around £430.
Maintenance
As mentioned, all vehicles older than three years must have a maintenance certificate. This covers the basics like tires, brakes, emissions, steering and bodywork. Please note that only certified test centers can issue certificates after verification.
Also, you can’t insure a car if it doesn’t have a valid MOT certificate. Thethe maximum charge is £54.85 , but if the car fails the test, all recommended repairs must be carried out before the car can be legally driven.
The cost of fuel in the UK
Gasoline and diesel prices depend on fluctuations in world supply. The Royal Automobile Club’s (RAC) price tracking system shows that diesel usually costs a few pence per liter more than petrol. Both types of fuel have also risen in price by 50p per liter since 2016. In January 2022, the average UK petrol price was 145.6p per liter for petrol and 149.03p for diesel .
Running costs are generally much lower for electric vehicles, especially as the number of charging points continues to increase. An electric car costs around 4.91p per mile or around £5 per 100 miles. In contrast, a petrol car costs an average of £12 per 100 miles.
Importing a car to Great Britain
Unless your car is a beloved classic that you can’t live without, it may be easier to buy or hire a car in the UK. However, it is possible to import a cherished car from your country, and the government provides clear guidelines to help you through the process.
You can pay a specialist importer to handle all the legal steps or do it yourself. It is worth noting that if you decide to import the car yourself into the UK, you must notify Her Majesty’s Customs (HMRC) within 14 days of the car entering the country. And you can’t register the car until you do.
Tax and requirements when importing a car
You will need to get the vehicle approved to confirm that it meets UK environmental and safety regulations. This should be straightforward if the vehicle is registered in the European Union (EU). The European Certificate of Conformity from the manufacturer will certify that you have approval for a vehicle registered in the EU. You also need a mutual recognition certificate if it’s a left-hand drive vehicle.
In addition, you may be required to pay value added tax (VAT) or import duty depending on your status. People who move to the UK to live and bring a car with them are usually exempt from duty. However, it’s a good idea to check with HMRC’s motoring team first.
If you’re moving to the UK from the EU and have owned your vehicle for more than six months while living outside the UK for more than 12 months, you can take it with you tax-free with an HMRC Transfer of Residency (ToR) . scheme . However, if you bought a vehicle in the EU and imported it into the UK, you will have to pay 20% import VAT if it is under 30 years old and 5% if it is over 30. This is calculated on your purchase invoice and any what is the shipping cost to uk.
If the car is from elsewhere, you will need individual vehicle approval and meet UK driving regulations. Once all permits have been obtained and any fees paid, you can tax and register the car.
Selling a car in Great Britain
There are many ways to sell a car in the UK. You can sell it privately through a website or classifieds, take it to a car auction, contact a company that specializes in buying used cars, or trade it in at a dealership for a different model or a new car. However, in all cases you will need to comply with government regulations . You must provide the buyer with the correct information and tell the DVLA the buyer’s name and address.
If you choose to advertise your car online, in a specialty publication, or in a newspaper, the rates will be different. To sell your car at auction, you can pay an entry fee of between £100 and £150. The commission is additional and you will also have to pay 5% VAT on the price it makes up. Alternatively, you can go with a company that will take all the work out of the process and provide an instant online valuation of your car based on its registration number. Examples of such companies:
The equipment you need for your car in the UK
The UK differs from many jurisdictions in not requiring first aid kits or warning triangles. All that is required is that the cars are roadworthy, taxed, registered and insured. Notably, tax drives were abolished in 2014 when the DVLA moved all its systems online.
The AA provides a useful guide for drivers unfamiliar with UK law and common practice. It reminds drivers that if seat belts are fitted (but classic cars may be exempt), they must be fastened. Children under 11 must also be secured in an appropriate child seat.
In addition, it is recommended, but not necessary, to have with you:
- warning triangle
- first aid kit
- extinguisher
- reflective jacket to wear in case of breakdown
Useful resources
- GOV.UK is the UK Government’s official website for guidance on the legal requirements for buying, selling, registering and driving cars
- AA – The official AA website for guidance on insurance, roadside assistance, car care and safe driving
- The Driver and Vehicle Licensing Agency (DVLA) is a government agency that controls driving and vehicles in Great Britain