Author: Dennis Chapman
Published: May 11, 2010
Reading time: 2 minutes
This article is 11 years old.
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.
A lot of transactions involving a part exchange can leave the dealer high and dry when the part exchange is a ‘pig in a poke’.
We get a number of disgruntled clients complaining that they agree a sale of a vehicle only to find that the part exchange doesn’t match what the customer has said. The timing of the contract is of utmost importance and also points to the need for good order forms/invoices when completing the deal.
In a recent situation a client agreed to sell a vehicle at a price. The sales person asked the customer whether the part exchange car drove well. She said it did. The customer paid a deposit which is usually the agreed time in law that the contract is made.
Unfortunately when the part exchange was delivered, it was noted in a short time that the part exchange car certainly did not drive well. BUT:-
a) Who is to say it didn’t drive well when the contract was made?
b) What if the customer lies about what was said?
So, as a rule, always carefully check over the part exchange vehicle you are buying BEFORE you agreed to the deal. AND use good order forms/invoices which tie down some key descriptions for your part exchange, eg has it had an accident? Is it on finance? Etc etc.