It is a common grey area, as to what constitutes a ‘Trade Sale’. Trade sales can only be made to persons who are not a consumer.
The Unfair Contract Terms Act defines a consumer as follows;
’12 – Dealing as a consumer’.
(1) A party to a contract ‘deals as consumer’ in relation to another party if;
(a) he neither makes the contract in the course of a business nor holds himself out as doing so; and
(b) the other party does make the contract in the course of a business; and
(c) in the case of a contract governed by the law of sale of goods or hire-purchase, or by section 7 of this Act, the goods passing under or in pursuance of the contract are of a type ordinarily supplied for private use or consumption.
As such only if a purchaser of the vehicle is a business, purchasing a vehicle for business purposes, i.e. A fellow motor trader purchasing a vehicle to sell on at a later date, or a business buying a company vehicle can the sale be classed as a Trade Sale.
As such it is prudent to protect yourself by using a Trade Sale Invoice, specifically making the purchaser aware that they are purchasing the vehicle under these terms. The Invoice should have a clear description of what is meant by a trade sale and a disclaimer, symbolising the purchaser’s agreement that they are eligible for a Trade Sale.
See Lawgistics Trade Sale Invoice stationary pads, but remember these pads can not be used for consumer sales.
Composer is a next-gen automotive platform that has been designed from the ground up to give you an intuitive way to promote your stock. You have extensive stock management options, and you'll gain a brilliantly responsive new website to advertise your stock, starting at just £39.99/month.
