Primary Authority: Dace Motors In this feature l fair trading l second-hand sales l consumer complaints Motoring ahead A small business that had faced complaints, prosecution and disrepute has transformed into the largest car retailer in Stockport. Dennis Chalmers explains how trading standards lies behind the success V ehicles are among the biggest purchases consumers are likely to make in their lifetime. Unfortunately, issues with second-hand cars and other motors make up the largest source of complaints to the Citizens Advice Consumer Service (CACS) and to trading standards. Half of faulty used cars display problems within a month of being bought, and Citizens Advice has helped with more than 84,000 such problems in the past 12 months. Common issues include smoke emerging from the engine, corroded brake pipes and broken clutches. UK drivers spend more than 363m on these complained about cars, so its a crucial topic. However, perceptions get in the way of resolving issues. Second-hand car dealers are commonly viewed by the public as being dodgy, while car dealers perceive trading standards as the enemy always against them and in favour of the consumer. Dace Motors We decided to try a new approach by working alongside businesses that wanted to work with trading standards As part of the National Intelligence Model (NIM), Stockport Trading Standards holds a monthly tasking meeting to highlight the traders causing the most consumer detriment. Dace Motor Company was always in our top 10 most problematic. After a series of complaints about non-roadworthy vehicles, trading standards officers along with colleagues from the Driver & Vehicle Standards Agency (DVSA) carried out a surprise inspection of the company in March 2010. As a result, the DVSA issued six prohibition notices under the Road Traffic Act 1988 over vehicles offered for sale. After this, Dace Motors was removed from the Fair Play Charter (seebox, Fair Play Charter ) and the company faced prosecution. Novel approach Our usual stance in combating what we perceived as a rogue element was no nonsense enforcement action, but this had its downsides. Itwas costly and, more importantly, very time consuming as anyone who has investigated a car trader and examined hundreds of vehicles and documents will know. Prosecutions were still brought against the worst traders operating in our area. However, it was decided that experienced officers with responsibility for prosecuting offenders would be given the scope to exercise discretion and we decided to try a new approach by working alongside businesses that wanted to work with trading standards. Dace Motors was one such company. Starting in early 2012, we had a number of meetings with Dace Motors to analyse complaints and find the areas of concern. Over time, we laid the foundations of a partnership and, crucially, built up trust, which was key to developing the relationship. As you can imagine, it was highly unlikely, at first, that the company would call trading standards when it received a complaint about a vehicle it had sold. However, once a strong trust had developed between Dace Motors and our team, the business started to act upon our advice resulting in a more consumer-focused company. It soon became apparent how positive Dace Motors was in its efforts to ensure and increase consumer confidence in the business, and to gain knowledge from trading standards to help it do so. It took around 12months to implement all the actions we had discussed. F AULT BREAKDOWN Of 2,519 complaints made about secondhand cars to the Citizens Advice Consumer Service nationally in the first two weeks of September 2013, 83 per cent were about faults, of which: G More than half (53 per cent) developed within a month of buying the car On to greater partnership The benefits of a Primary Authority partnership and how this could shape Dace Motors future vision were discussed. An action plan was created, initially focusing on what the company did well, instead of on the negatives, as well as ways to create a sustainable competitive advantage. The partnership was formalised in August 2014. G Four out of five cars required essential repairs G 139 cars were only fit for the scrap heap Dace Motors premises The nature of the beast with second-hand car sales is that there will always be complaints. Its how the business deals with these complaints that gives confidence to consumers The CACS database was analysed to gain an in-depth understanding of the type of enquiries received. Regular monthly meetings with the company were set, to discuss the review of procedures, new measures to be introduced, and meticulous checks and balances to beimplemented. We suggested and introduced new pre-delivery inspection (PDI) vehicle check documents and a complaints procedure that works on a traffic light system. Together, we combined the knowledge and experience of trading standards with Dace Motors experience of what worked well within the industry. It was soon evident that trust in, and enthusiasm for, the Primary Authority partnership was being fostered within the business. Word spread throughout Stockport, consumers learned of the work we were doing, and results started to have an impact on Dace Motors business sales. The number of complaints also decreased. TOP TIPS G A good working Smashing results Since 2013, Dace Motors has experienced a 47 per cent increase in its car sales and set up an additional sales centre. Despite these increased sales, trading standards has received 11 per cent fewer enquiries about the company in the past calendar year than in previous years with justified complaints now rare. Because of the continued success of the Primary Authority partnership, Dace Motors now employs more than 80 staff, sells around 400 vehicles per month from three branches, and has enjoyed an accelerated period of growth, with its annual turnover increasing by 78per cent. The nature of the beast with second-hand car sales is that there will always be complaints its how the business deals with these complaints that gives confidence to consumers. Monthly analysis of the justified complaints received via the CACS portal is now undertaken. We have designed a bespoke database so this analysis can be easily monitored and continuous improvement achieved. It means issues can be highlighted, and result in a new procedure within the company learning from the issue so as to avoid repeating it. Dace Motors was once the most complained about business in Stockport, removed from the Fair Play Charter and facing prosecution. In partnership with trading standards, however, the company has transformed and is now the largest used car retailer in the town. relationship with the Driver & Vehicle Standards Agency is something our team would highly recommend G For partnerships such as this, picking a garage that actually wants to improve is crucial to making the relationship work FAIR PL AY CHARTER Striving to combat rogue elements in the were judged to be operating in a fair Although not an approval scheme, car industry, the Fair Play Charter scheme and honest way. A voluntary registration member businesses had to demonstrate was introduced in 2004, in partnership scheme for traders, it looked to address a commitment to fair trading and to sign with councils in Bury, Manchester, Oldham, the problems many people experience a pledge to comply with the schemes St Helens, Salford, Stockport, Tameside when buying, servicing or repairing specific terms and conditions. and Wigan. their cars. It was developed by trading standards It was hoped the charter would The Fair Play Charter was discontinued in 2011 because of a lack of resources, for the motor vehicle trade sector, to help consumers recognise when they and was replaced with the Buy With recognise and promote businesses that were dealing with a reputable trader. Confidence Scheme. To share this page, in the toolbar click on You might also like Credits Dennis Chalmers is a trading standards enforcement officer at Stockport Metropolitan Borough Council. Images: DisobeyArt / Shutterstock Turning back the clocks May 2016