Dealers can reduce the likelihood of becoming involved in disputes with used car buyers through clear communication and diligent pre-sale checks.
Those are among the findings of a new report on used car purchase disputes between consumers and businesses, published by The Motor Ombudsman.
The report is based on analysis of used car purchase cases where The Motor Ombudsman issued a decision between 2023 and 2025.
According to the report, by far the most common source for disputes was customer service, which accounted for an average of 57% of cases over the three-year period, rising to 64% in 2025. This included complaints relating to both the point of sale and the period after purchase, including vehicle preparation, disclosure of information, communication, complaint handling and the completion of agreed repairs. This included vehicles which, from the customer’s point of view, had been sold with defects, on the basis that questions arose about pre-sale inspections, vehicle preparation and communication – such cases accounted for 27% of customer service complaints.
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The report states: “Disputes are not driven solely by mechanical or technical issues. They are also influenced by how clearly a business communicates with the consumer, how quickly it responds, and whether it explains the available options in a way that manages expectations.
“Delays, limited updates or uncertainty around responsibility can heighten the level of dissatisfaction, even where a remedy is ultimately provided.
“For used car retailers, the findings underline the value of thorough pre-sale checks, accurate vehicle descriptions, well-documented handovers and prompt aftersales communication.”
Other sources of complaints identified by The Motor Ombudsman were a vehicle’s drivetrain (accounting for 17% of complaints), chassis (12%), exterior (5%), interior (4%), electrics (3%) and fuel and emissions (2%).
According to the report, a recurring theme in disputes was the importance of evidence in determining whether a fault was likely to have been present when a vehicle was sold – a factor it states may alternately favour the consumer or the business depending on how much time elapses before complaints are made.
The report states: “Where a problem arises within the first six months, the evidential position may favour the consumer unless the business can show otherwise; after that point, the consumer generally needs to provide supporting evidence that the issue was inherent.
“This distinction helps explain why seemingly serious faults do not automatically result in a complaint being upheld.”
EVs on the rise – and adding complexity
Another trend highlighted by the report is an increase in complaints concerning electrified vehicles. Cases involving hybrid and electric vehicles rose from 4% and 2% respectively of cases in 2023 to 9% and 5% in 2025, in line with their increasing presence on the used market – something which The Motor Ombudsman argued increased the need for dealer diligence to avoid disputes.
The report states: “The rising presence of hybrid and electric vehicle disputes points to a used car market that is becoming more technically complex.
“As more electrified vehicles enter second ownership, disputes may increasingly involve higher-value components, software-led diagnostics, charging systems and battery-related concerns.
“This reinforces the need for retailers to maintain clear records, robust preparation processes and transparent explanations of vehicle condition at the point of sale.”
Despite the increased number of electrified vehicles on the used market, most disputes in the data period still involved petrol or diesel vehicles – also consistent with the wider used car market fuel mix. However, diesel replaced petrol as the fuel type associated with most disputes in 2025, which The Motor Ombudsman said may reflect the ageing profile of the vehicles, the complexity and cost associated with emissions-related systems and longer-distance usage patterns.
Number of disputes increasing
The three years covered by the report have seen an increase in the number of used car purchase cases submitted to The Motor Ombudsman, from 10,262 in 2023 to 16,317 in 2024 and 18,570 in 2025. However, the body pointed out that the 2025 figure still only represented 0.24% of used car transactions during the year; albeit this was up from 0.14% in 2023.
The Motor Ombudsman said that as well as growth in used car sales, the increase in cases could also be attributed to increased cost-of-living pressures on motorists making them feel like the cost of putting issues right themselves was unaffordable or disproportionate. It also said increased awareness of The Motor Ombudsman and the free-of-charge Alternative Dispute Resolution (ADR) process was a likely factor, as was consumers using AI tools to help them put together complaints.
The average age of vehicles involved in used car disputes was 4.7 years – a figure which was fairly static throughout the data period. The Motor Ombudsman noted that this was beyond the three-year period commonly covered by manufacturer warranties, which it said explained why warranty coverage was often not the focus of complaints.
During the data period, SUVs accounted for 46% of closed used car purchase cases, well above their 20% share of the overall car park. However, The Motor Ombudsman said this did not mean they were more problematic than other car types, but instead reflected increased consumer demand for the vehicles over time.
Hatchbacks accounted for 23% of closed cases compared with a 26% car parc share; executive cars and saloons accounted for 15% of closed cases compared with a 4% parc share; city cars and superminis accounted for only 6% of closed cases despite a 35% parc share; and MPVs accounted for 2% of closed cases with a 4% car parc share.
Customer expectations changing
The Motor Ombudsman said that during the three-year period covered by the report, the outcome to disputes most desired by consumers shifted from a full refund to compensation, with the latter at 26% in 2025, ahead of a full refund at 22% and a free-of-charge repair at 20%. It said the averaged desired financial value of a resolution was £8,007 in 2025 – although it noted that this was only an indication of the consumer’s expectations, rather than what they might actually receive.
The most common award to consumers by The Motor Ombudsman in 2025 was a free-of-charge repair, awarded in 27% of cases, ahead of rejection of the vehicle at 21% and a goodwill gesture at 15% – the latter typically in the form of a discretionary/settlement payment or reimbursement offered by a business.
During the three-year period, The Motor Ombudsman said an average of 55% of cases were either partially or fully upheld in the consumer’s favour – although this figure declined from 60% in 2023 to 52% in 2025. This decline was mostly accounted for by a quadrupling of the share of consumers withdrawing from the ADR process, from 2% in 2023 to 8% in 2025, which The Motor Ombudsman said could happen in cases where an early informal resolution or mutually acceptable settlement was agreed.
The report states: “The outcomes analysis reinforces the value of engaging in a certified ADR process that is balanced, evidence[1]led and proportionate. Although a majority of cases across the three-year period were upheld in the consumer’s favour, the relatively stable share of business-upheld decisions demonstrates that the process is not simply weighted towards one side, but instead reflects the merits of individual cases.
“Equally, the gap between the remedies consumers hope to receive and the awards ultimately attached to outcomes highlights a pertinent point at the heart of used car disputes: expectations at the outset of a case do not always align with what the available evidence and the circumstances justify. This is especially relevant in a market where repair costs are rising, vehicles are becoming more technologically complex, and electrified models are beginning to feature more regularly in complaint volumes.
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“For businesses, the findings point to the importance of prevention as much as resolution. Thorough vehicle preparation, accurate advertising, clear handover information, documented checks, prompt responses, as well as fair and transparent complaint handling, can all help reduce the likelihood of escalation.”