Government To Introduce New Sales Guidlines To Car Dealers
Friday, 12. February 2010
It would seem that the Office of Fair Trading (OFT) is about to clean up the act of used car dealers (fat chance). It will be issuing new guidelines later this year when consultations are completed on 12th March. The action has been taken as a result of used car complaints topping the list of complaints received over the past 3 years by Consumer Direct, the Government’s independent advice service. In 2008 this amounted to 68,000 complaints ranging from simple cases of poor quality goods through to garages deliberately misleading buyers in order to sell a car. It is illegal under current legislation to clock cars (wind back the milometer) or to falsify a service history but it is often difficult to establish where the crime lies so the new guidelines will clear up any confusion over current legislation as well as address many other problems encountered by consumers when buying vehicles from dealers. The new rules will mainly cover used vehicles sold on forecourts but will also cover cars sold by dealers via auctions. The rules will broaden Consumer Protection for Unfair Trading Regulations (CPRs) 2008 and the Sale of Goods Act 1979. Under the rules buyers are already protected from dealers providing misleading or false information either verbally or in writing, including advising the customer if the car is an ex lease car or ex rental car. Other areas such as pressure selling and exploiting customers’ emotions are being re-visited as well as dealers pretending to be private sellers and advertising cars via classified ads or selling cars by the side of a road. The trick of ‘baiting’ has also been identified whereby dealers advertise non existent cars at low prices to tempt buyers with the intention of selling a more expensive car. The new rules are likely to include due diligence with the onus on the dealer to ensure that all the details provided are correct such as condition of the car, this may require a pre-sale inspection, mileage check, service history check and MOT verification. In the past many used car dealers have simply had an MOT test carried out and relied upon this as a confirmation that the car is in faultless condition. This will no longer be the case. As soon as I have an update I’ll keep you advised. In the meantime be very careful when dealing with Mr Slick the used car salesman! By Graham Hill
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