One thing that is easy to forget in the effort to get a sale over the line is the part exchange coming your way.
When a consumer offers their vehicle in part exchange, they are not under a duty to tell you all about it. The onus is on you to ask the right questions. Then, their duty is to answer those questions truthfully. If they do not, you may have a cause of action against them for misrepresentation.
I’ve had clients say, “I asked him if it drove sweet, and he said yes.”
To pursue a claim successfully all the way to court based on the interpretation of “sweet” is asking a lot of the judicial system. Something more robust is required.
Ideally, you want to test drive the vehicle and assess it properly before finalising the deal, but this is not always possible. What you can do—and what you definitely should do—is ask the right questions so that the customer has to be upfront about anything that might be an issue.
You should set out your questions in writing, and the customer should then sign the document once it is completed.
Questions you may wish to ask include:
- How would you describe the overall condition of the vehicle, both inside and out?
- Are there any dents, scratches, or other cosmetic issues?
- Are there any warning lights on the dashboard?
- Does it have a full service history, or are there any gaps?
- Is there any outstanding finance on the vehicle? (You should always do your own HPI check regardless of their answer.)
- How many sets of keys does it have?
- Has the vehicle been modified in any way, or have any aftermarket parts been fitted?
- How long have you owned the vehicle?
- Has it ever been used for hire, reward, or as a hire vehicle, either by you or a previous owner?
- Do you have the V5 logbook?
- Are there any immobilisers fitted?
- Have you had any work carried out on the vehicle during your ownership? If so, what was it, and do you have invoices?
- Has it ever been involved in an accident?
- Are you aware of any repair work that is required?
- Does it drive sweet?
The more information you get from the customer, the easier it is to pursue them for your loss if they have lied and it turns out the vehicle isn’t what you thought it would be.
If you have issues over a part exchange that is causing you grief, call Lawgistics. Our legal team can advise you on your chances of recovering any losses. Remember, our members also have access to documentation and support tools to help manage these scenarios more effectively.
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