Internet car buying in the UK

Internet car buying is a relatively new area. Whilst selling new and used cars on the internet has been around since 1998 or so, it is only since the year 2007 and beyond that consumers have had the ability to offer their vehicle to UK trade buyers directly.
History
There have been internet car dealers operating in the UK almost as long the internet has been in the public mainstream. Established trade bodies and trade magazines embraced the technology and in several places the online media overtook the printed copy. For example the online version of Autotraderhas approximately thrice the readership of the printed version.
As the popularity of the Internet increased, the first pure online car dealers appeared around 2003. These car dealers are typified by the lack of a dealer's license, and only dealing in new cars. This minimises the labour component of the business and allows a high level of automation.
Buying used cars
Some car brokers can help source used cars as well as new ones. In many of these cases, the car broker will buy the car and then sell it to their client. Used car brokers are generally licensed. The reasons for having a dealer's license are:
<LI>The car may be bought at an auction where private sellers cannot bid.
<LI>The car may be sourced from a private seller, but the buyer must purchase from a licensed dealer due to financing requirements.
<LI>Clients often prefer buying from a licensed dealer as statutory warranties apply in most cases.
Many clients buy used cars via brokers without first seeing the car.
Regulations
Car brokers are unregulated in the UK.

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