Part-ex scams


A couple of members have recently fallen foul of customers scamming them over the vehicle they part-exchanged.

Author: Darren Fletcher
Reading time: 2 minutes

This article is 4 months 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.

We don’t have many scams get past our eagle-eyed members, but recently we have had some that have bitten some of our newer recruits to the profession.

Motor traders have been in business ever since there were motors to sell, but the industry is ever changing, and we are here to give advice to both the long-established and those new to the trade.

A couple of members have recently fallen foul of customers scamming them over the vehicle they part-exchanged.

One customer produced a fake letter from the finance company advising that the settlement figure was much less than the actual figure, so the difference was credited to the customer. However, when it came to paying off the finance on the vehicle, the dealer transferred what they thought was the settlement figure only to find out the consumer still owed thousands. 

The second scenario involved the customer advising that they would sort out the finance and as they were downsizing cars, the trader paid the customer the overspend. But, of course, the customer never did pay the finance.

In both cases, the traders could not sell the part-exchange car and they were severely out of pocket.

Our advice is always contact the finance company by telephone to check any outstanding figure, and to be safe, ask them to confirm it in writing to avoid any unpleasant surprises.

Darren Fletcher

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.