OFT Guidance for second hand car dealers

legal updates

We believe the publishing of this new guidance will turbo charge Trading Standards Departments into enforcement.

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.

The OFT has published guidance on practical interpretation of:

  1. The Consumer Protection from Unfair Trading Regulations 2008 (CPR).  These are the new all embracing regulations which replace several earlier pieces of legislation including the Trade Descriptions Act.  They give a broad ban on unfair commercial practices towards consumers.
  2. The Sale of Goods Act 1979 (SOGA) – satisfactory qualtiy, fitness for purpose, descriptions and remedies for consumers when things go wrong.

We believe the publishing of this new guidance will turbo charge Trading Standards Departments into enforcement.  The CPR regulations have been difficult to interpret for Trading Standards Officers, let alone motor dealers.  Now there is flesh on the bones which the Trading Standards Officer will use to instantly check whether the motor dealer is complying or not.

We strongly recommend you read the guidance which is available at www.oft.gov.uk/shared_oft/reports/676408/oft1241.pdf.

Over the next few months we will include some items as food for thought – prepare to be surprised!

The broad rules under CPR set out the flavour of the new legislation in regard to unfair business practices:

  1. Giving false or deceptive information to consumers including advertisements, verbally or paperwork.
  2. Giving insufficient information eg failing to provide on MOT advisory note, withholding service history.
  3. Acting aggressively.
  4. Failing to act in accordance with reasonable expectations of acceptable trading practice (honest market practice good faith).
  5. The CPR also contains bans on 31 specific practices outright.

A practice is unfair under the first four rules above if it causes, or is likely to cause, the average consumer to take a difficult decision eg viewing or buying a vehicle when they wouldn’t have otherwise done so, buying the car at a higher price or disadvantageous terms when they wouldn’t have otherwise done so and not pursuing a legitimate complaint when they would otherwise have done so. An unfair practice can occur trade to trade if it could potentially affect a later consumer sale, eg selling a clocked car at auction. The guidance sets out various practical steps to help comply with CPR.

  • These include steps under
  • Pre sales checks
  • Checking mechanical condition
  • Vehicles under preparation
  • Providing information prior to sale
  • Warranties/Guarantees
  • After Sales Service

As an example, as part of pre sales checks the guidance requires you to carry out a mileage check and you should not rely on a mileage disclaimer as a substitute for carrying out reasonable checks.

We will address more points in future bulletins.

WeRecruit Auto LtdPermanent Automotive Recruitment from an experienced and trustworthy recruitment partner.

We cover roles within all departments and sectors of the Automotive industry, and are here to listen to your specific needs and find the most suitable candidates to fit your business.

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

Related Legal Updates

Claim Dismissed: No Proof of Fault at Purchase

Our member argued that numerous issues could have caused the overheating and ultimate failure.

Is it the end of Trading Standards enforcement as we know it?

Earlier this year, the Digital Markets, Competition, and Consumers Act 2024 obtained Royal Assent.

Court Rules Against ‘Serial Returner’ in Distance Selling Dispute

It is clear from his evidence that his true intention was that he wanted the ability to reject the car at a time of his choosing.

The omni-channel approach and distance sales

The conclusion of a contract when purchasing a vehicle occurs when a deposit or the full purchase price is paid.

Always prep, check, then check again

If you state that every vehicle comes with a new MOT, then ensure that they do!

How to legally get rid of an uncollected vehicle

Unlike a notice to collect goods, a notice of intention to sell uncollected goods can be used for all types of conventional bailment, and not just where the goods were left for repair, valuation, or storage.

What are your legal obligations once you have a customer’s vehicle?

Bailment is one of the most common legal relationships that many businesses find themselves in with consumers.

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.