COVID-19: Do your T&C’s include a Distance Selling cancellation clause?

legal updates

This could be considered running an organised distance selling scheme.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

In a perfect world, car dealers want their showrooms to be full of stock, with significant numbers of prospective buyers milling around, sitting in cars, test driving, chatting to sales-staff and then driving off in them happy with their new purchase.

But today is not the perfect world and won’t be for some time.  A number of clients are wishing to deliver cars to customers at their home (self-isolating permitting!).

As this could be considered running an organised distance selling scheme, customers could have the right to cancel the contract for UP TO A YEAR after delivery if they are not advised of the right to cancel the contract.
Car dealers can also be prosecuted by Trading Standards.

Where a consumer (not a business buyer) has a car delivered to them and where they have not visited the showroom beforehand, we suggest the following is given to consumers either separately (in person at handover) as well as in your terms and conditions online.  Ideally, you should retain a copy of this clause with their signature signalling that they have received the notice – to ensure that they know they have the right to cancel.

Do note that the mile limit and fee per mile travelled over that limit is for each dealer to decide and this example is indicative only.  You cannot, though, allow for a 20 mile limit and £20 per mile driven over that amount!
.

TEMPLATE

Cancellation under the Distance Selling Regulations
Ordinarily we do not run an organised distance selling scheme.

However, due to the coronavirus outbreak we need to support our valued customers by delivering your vehicle to your home.

If you have ordered and taken delivery of your vehicle without visiting our showroom and you are not buying the car in the course of your trade or business, the following cancellation clause applies:

  • You have 14 days to get to know your new vehicle and to make sure it suits you.  If you change your mind just let us know in writing by post [insert address] or in email to [insert email address] and to reach us by 6pm on the 14th day following delivery and we will come and collect the vehicle for a refund.  
  • We cannot accept a return of the car if it has been damaged, modified or altered from the condition it was delivered in.
  • An excess mileage charge of £1 per mile for any mileage over 150 miles in those 14 days will apply.  If you do change your mind you cannot use the car once you have notified us – but you must still tax and insure the vehicle until it is collected.

This cancellation (change of mind) clause does not affect any separate rights given to you in The Consumer Rights Act 2015 or the Sale of Goods Act 1979 (as amended).

Connected Car FinanceReady to take the connected approach?

We’re here to ensure all used car dealerships deliver a better car finance experience for their customers. With over 4,000 approved dealer partners we ensure you are properly supported and connected with a range of flexible finance options, allowing you to lend and your customers to buy in complete confidence.

Jason WilliamsLegal AdvisorRead More by this author

Related Legal Updates

Proving the ‘chain of custody’ can be a challenge

Conflicting interests on a used car can turn a simple purchase into a legal minefield. Here’s how to evidence the chain, challenge a finance claim, and spot the red flags before you hand over the cash.

Sale or Return: Why “Private Sale” won’t save you from Consumer Rights Act responsibilities

Dealers using Sale or Return cannot hide behind “private sale” labels unless the agency position is made crystal clear from the advert onward. Miss that step and you risk CRA 2015 claims and a DMCCA 2024 breach.

WhatsApp chats can seal the deal. Here’s why that matters for distance sales

A 2025 High Court case confirmed that a short WhatsApp exchange can form a binding contract. Here is what that means for distance sales in motor retail, including why collection from your site does not change the status of the deal.

30 Days to Hand the Keys Back: How the Short-Term Right to Reject Really Works

Think a new fault lets buyers walk away, no questions asked? Not quite. Discover why the burden of proof is on the consumer, and how dealers can stay one step ahead.

Don’t Get Caught Out: Why Your Car Warranty Won’t Shield You from the Consumer Rights Act

Think a watertight warranty protects you from refund demands? Think again. We explain how the Consumer Rights Act trumps any small print and what dealers must do to stay safe, or risk costly claims.

When no title means no sale

Four years after selling a Range Rover, a trader was hit with a demand for a full refund when the vehicle was seized in Spain.

Don’t Get Caught Out: Your Essential Part Exchange Checklist

Part exchanges can quickly become costly if a trade-in isn’t as described. Learn what to ask and how to protect yourself with our practical checklist.

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.