Complaints about used car sales are consistently high and the investigation will seek to identify the most harmful issues and propose recommendations to strengthen fairness, transparency and confidence in the sector.

The investigation will examine the full range of used car transactions affecting consumers in Scotland, including those made online or at a distance from sellers elsewhere in the UK.

For many households, buying a second-hand vehicle is essential for work, family and daily life and figures show there were almost 160,000 used car transactions in Scotland between April and June this year alone.

However, evidence from advice body Advice Direct Scotland shows consistently high levels of complaints related to second-hand car purchases, with more than 19,500 cases logged between April 2019 and December 2024.

National data ranks second-hand vehicles among the leading causes of consumer harm in the UK.

Common issues include faults, misleading information, poor after-sales support and difficulties resolving problems.

The sector is also going through rapid changes which have created new pressures and risks including greater online sales, complex finance options and the transition to low-emission and electric vehicles.

Sam Ghibaldan, chief executive of Consumer Scotland, said: “While most transactions go smoothly, thousands each year end in frustration with consumers reporting a range of issues that are hard to resolve.

“This investigation will help us build a clear, evidence-based picture of the issues facing used car buyers in Scotland.

“We want to ensure consumers are better protected, better informed and more confident when making such a significant purchase in future.”

Andrew Bartlett, chief executive officer of Advice Direct Scotland, said: “Used cars remain one of the most common issues raised with Advice Direct Scotland, with thousands of consumers seeking help each year.

“We welcome the opportunity to work with Consumer Scotland on this investigation to improve outcomes, strengthen protections and build confidence in this important market.”

Alan Gall, chief executive officer of the Scottish Motor Trade Association, added: “As the voice of the automotive industry the Scottish Motor Trade Association supports Consumer Scotland’s investigation as an important step toward clearer expectations, better understanding of rights and stronger trust across the market.

“Consumer confidence drives our industry and our members continually aim for excellence in how they serve customers.”

The investigation will examine a range of consumer experiences across the used car sector and will include new research on the challenges faced, an analysis of existing complaints data and individual case studies.

Consumer Scotland has also issued a call for information – which closes on 12 December – which will target a range of organisations including consumer advice, advocacy and enforcement bodies, trade associations, industry representatives and those involved with dispute resolution.

Consumer Scotland is the statutory body for consumers in Scotland which was established by the Consumer Scotland Act 2020.

Under the Act, Consumer Scotland may undertake investigations into sectors or practices which it considers cause, or may cause, harm to consumers.

The call for information is open until 5 December and submissions can be made via email to usedcarinvestigation@consumer.scot.