Your dad is correct. In law, it goes as this :
Retail sale (dealer, etc), is covered by Sale of Goods Act and Consumer Rights Act, also other acts which cover misdescribed items, concealment of faults, etc.
Private sale is covered by what is called 'caveat emptor' or 'buyer beware'. Basically, unless the seller deliberately lies, then you have absolutely no comeback at all. You could drive away 200 yards, the engine blows up, and the seller can stand there and laugh.
Basically, go for private sale cars if you, or a good friend, REALLY know a lot about cars. By that I mean 'works as a mechanic' or 'builds rally cars at home', rather than 'can quote Clarkson and the 0-60 time of an M3'. Apart from that, you're far better off buying from a garage that has a good reputation.
Yes, you'll pay £800-£1000 more for the car. But you might just save yourself from needing to spend £3k on fixing problems.
It's a judgement call, like all in life. On one side, you have better cover, but higher prices. On the other side, you have cheaper, but no protection at all. Only you can decide what matters more to you.
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