After retiring as a player, he went into coaching, and is currently goalkeeping coach at Barnsley. A goalkeeper, Vaughan came up through the youth ranks at West Ham United although he didn"t make a first team appearance at Upton Park. Whilst at West Ham he was sent out on loan to gain experience at Charlton Athletic, Bristol Rovers, Wrexham and Bristol City before Fulham paid £12,500 for his permanent services in the summer of 1986.
Vaughan spent 2 seasons at Craven Cottage, making 44 league appearances.
He was also in goal the night that Liverpool beat Fulham 10-0 in a Football League Cup game. He was released from Fulham in 1988 and was signed by manager Chris Turner.
Vaughan went onto enjoy success at United as, led by Turner"s successor John Beck, they gained successive promotions from 1989-1991 to take them to the old Second Division. They finished the 1991-1992 season in the play-offs for the inaugural Premier League season but were beaten by Leicester City.
During the following season Vaughan fell out of favour once Beck had been sacked and subsequent United managers Ian Atkins and Gary Johnson preferred either Jon Sheffield or John Filan much of the time.
At the end of the 1992/93 season Vaughan was released and joined Charlton Athletic where he made 6 appearances as back-up goalkeeper to Bob Bolder. When John Beck had taken over as manager of he took Vaughan with him and he made 66 appearances at Deepdale. Beck was sacked and took over at Lincoln City, taking Vaughan with him again where he played a further 65 games.
He wound down his league career with loan spells at Colchester United and Chesterfield before moving into coaching.
Vaughan went into coaching with clubs such as York City (appointed on a part-time basis in September 2003), Maccesfield Town and Grimsby Town. After doing some part-time coaching in the academy, Vaughan was appointed as goalkeeping coach at Huddersfield Town in August 2006.
He was goalkeeping coach of Birmingham City from July 2012 to October 2014. In June 2015, he was appointed goalkeeping coach at Barnsley.