Distance Selling Regulations – Beware

legal updates

You could end up with the customer having 3 months and 7 days to cancel the deal and give you back the car FOR NO REASON!

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.

If you, as a motor dealer, are prepared to sell cars over the telephone or internet then it is likely you will be caught by the Distance Selling Regulations. 

The danger for the dealer is that if you have not provided the necessary information as laid down in the legislation then you can end up with the customer having 3 months and 7 days to cancel the deal and give you back the car FOR ANY OR NO REASON!  You must refund the full price and the customer only has to make the car available to you at his/her own premises.

The solution – there are really only two ways to protect yourself.  Either don’t make it a binding contract until you are face to face with the customer.  This means you are going to be required to let the customer walk away when they see the car, even if you have carried out work on it OR comply with the legislation, in which case the customer will still have a 7 day cooling off period.

If you wish to comply with the legislation then please see Distance Selling Regulations and Your Customers Right to Reject a Vehicle.

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.

Dennis ChapmanIn remembrance of Dennis Chapman 1951 -2015Read More by this author

Related Legal Updates

Customer reneges on agreed not distance sale

Our member explained they do not offer a delivery service and do not engage in distance selling.

Consumer “Handcuffed” by Deduction for Use Settlement

Don’t sign any contract unless you are fully aware of its terms!

Double or nothing – Consumer’s claim dismissed!

The Claimant countered with a request for more than double the amount that our member had offered.

Non-refundable deposits – Where do you stand?

Relevant paperwork should be provided before payment is taken.

Used car warranties – What are you liable for?

If a fault is found to have been developing at the time of sale, this could become the trader’s responsibility to provide a remedy.

Distance Selling Regulations – A thing of the past?

The regulations only apply to consumer contracts, not business-to-business sales, and only apply to sales conducted at a distance.

Accepting Lowball Offers 

What are your legal obligations when a customer makes a significantly low offer which you ”jokingly” accept? Will it be legally binding?

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.