How to Check if a Used Car Dealer is Legitimate

A Complete Guide for Car Buyers in Barnsley and South Yorkshire

Thinking of buying a used car? Make sure the dealer is the real deal before you part with your money. Here’s how to check.

Why It Matters

In today’s digital world, not every used car dealer operates with honesty or transparency. And with so many platforms offering used cars, it’s easier than ever for rogue traders or even scammers to appear legitimate at first glance.

Whether you’re shopping locally in Barnsley, elsewhere in South Yorkshire, or online, this guide from anycolourcar.com will help you spot the signs of a trustworthy car dealer – and avoid the costly mistakes others make.

🔍 11 Things to Check Before Buying from a Used Car Dealer

1. Are They a Registered Limited Company?

Start by checking if the dealer is a registered business in the UK.

• Visit Companies House and search for their name.

• Make sure the company is active, not dissolved or in liquidation.

• Confirm the registered address and director’s name match what’s on their website or paperwork.

2. Are They VAT Registered?

Any dealer with a turnover over £90,000 must be VAT registered.

• Ask for their VAT number – this should appear on quotes and invoices.

• You can verify the number via HMRC or the EU VAT VIES checker.

• If they’re selling lots of stock and aren’t charging VAT, ask why.

3. Are They Registered with the ICO?

Dealers who handle customer data must be registered with the Information Commissioner’s Office (ICO).

• Use the ICO public register to confirm registration.

• If they collect personal information (finance forms, ID, etc.) but aren’t registered – that’s a red flag.

4. Are They Authorised by the Financial Conduct Authority (FCA)?

If they offer finance, they must be FCA authorised or an appointed representative of someone who is.

• Check the FCA register at register.fca.org.uk.

• Avoid taking out finance with an unregulated dealer – you won’t have legal protections.

5. Do They Have a Physical Premises?

Reputable dealers usually have a showroom, office, or forecourt.

• Check the address on Google Maps – is there signage and photos of the site?

• Visit the premises where possible. Avoid dealers who only operate online or use PO boxes.

6. Are the Cars They Advertise Real and Available?

Some dishonest dealers advertise cars they don’t have – just to get your details or a deposit.

• Ask for a video walkaround of the specific car with today’s date.

• Look for consistency in the photos – are all the cars pictured in the same place?

• Be wary of stock that changes too frequently or seems too good to be true.

7. What Do Their Reviews Say?

Customer reviews can reveal a lot.

• Search for reviews on Google, Trustpilot, Autotrader, and Facebook.

• Look for:

  • Repeated positive experiences

  • How the dealer handles complaints

  • Consistent red flags (e.g. poor aftersales service)

⚠️ Be cautious if the reviews are all glowing but vague – they could be fake.

8. Do They Offer a Warranty?

A solid warranty shows confidence in the vehicle’s condition.

• Most reputable dealers offer at least 3–6 months warranty.

• Ask whether it’s with a third-party provider or their own cover.

• Read the terms – what does it actually include?

9. Are Their Prices Too Good to Be True?

If the price is far lower than market value, it might mean:

• Hidden issues

• Outstanding finance

• Or the car simply doesn’t exist

Cross-check the price using platforms like Autotrader, PistonHeads, or Parkers.

10. What Payment Methods Do They Accept?

A trustworthy dealer will offer multiple payment methods.

• Credit card payments offer extra protection.

• Be wary if they only accept bank transfers, especially for deposits.

• Reputable dealers will usually offer finance, card payments, or approved payment platforms.

11. Do They Own the Cars or Are They on Stocking Finance?

Some dealers don’t actually own the cars – they use stocking finance (credit from companies like Black Horse, NextGear Capital, etc.).

This means the finance company owns the car until the dealer pays off the loan. If the dealer fails to pay, the finance company could repossess the car – even if you’ve already bought it.

How to protect yourself:

• Ask the dealer directly: “Is this vehicle owned by you, or on stocking finance?”

• Get a full HPI check – this will show if any finance is still outstanding.

• Request written confirmation that the car is owned outright before completing the sale.

🚫 What Not to Do

• Don’t pay a deposit without verifying the car exists.

• Don’t deal with sellers who refuse to show the car in person or via video.

• Don’t assume a professional-looking website means legitimacy.

• Don’t share sensitive information unless the dealer is ICO registered.

✅ What You Should Do

• ✅ Ask for all registration numbers (Company, VAT, FCA, ICO).

• ✅ Cross-check the dealer’s name and address across different platforms.

• ✅ Use a credit card or trusted finance provider where possible.

• ✅ Get everything in writing – warranty, vehicle condition, and ownership.

Looking for a Trusted Used Car Dealer in Barnsley?

At anycolourcar.com, we pride ourselves on transparency and trust. We are:

• ✅ A registered limited company

• ✅ VAT registered

• ✅ FCA authorised

• ✅ ICO compliant

• ✅ Proudly based in Barnsley, South Yorkshire

All our cars undergo thorough checks and come with a warranty for peace of mind. Whether you’re shopping online or on our forecourt, we’re here to help you drive away with confidence.

💬 Have Questions?

Get in touch with our friendly team today – we’re always happy to answer your questions, show you the paperwork, or give you a live video walkaround of any car.

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