Car Dealers

Consumer Rights

SPRING 2016 CAR DEALERS GEARING UP FOR CHANGE With the introduction of new rules, do you know your legal obligations when selling motor vehicles? The Consumer Rights Act 2015 brought changes to the law in relation to the sale of motor vehicles. Your customers have a number of core rights. If these are breached, the consumer has the right to reject the goods in appropriate circumstances. Any vehicle purchased must be of satisfactory quality. This includes: l Fit for all the purposes for which a vehicle of that kind is usually supplied l Free from minor defects l Safe l Durable It must also be t for purpose, including for a particular purpose the customer has made known to you. For example, it must be possible to t a roof rack if the customer has made it known to you that this is what they require from the vehicle. Any vehicle sold should also: match any description given, whether by advertisement, online or verbally; and match any model that they examined or saw, unless you tell them otherwise. In addition, a trader should ensure that they are legally entitled to sell the vehicle and that it has no outstanding nance on it. If any of your customers core rights are breached within the rst 30 days of a purchase, the consumer has a number of rights. First, in the short term, they can reject the car and get a full refund and all associated costs. Second, any refund must be given without delay and, in any event, within 14 days of a trader agreeing that the consumer is entitled to a refund. Alternatively, the consumer can request a free repair or replacement. Third, as a trader you have only one opportunity to repair or replace the goods; then the consumer has a nal right to reject the car or, if they wish to keep it, a reduction in price. Traders only have one chance to make the car of full satisfactory quality, so if a further fault occurs, which is considered to be a failure to repair, the consumer has the right to reject the car, or request a reduction in price. After 30 days, the consumer loses the right to reject the vehicle, but can still request a repair or replacement. If you are unable to repair or replace after one attempt, the consumers rights are as follows: l The consumer can keep the car and receive a refund, less an appropriate amount l Reject the car and receive a refund, less an amount for use (this does not include depreciation) A consumer cannot make a claim if: l The defect was brought to his attention before the sale l The consumer examined the car before sale, and the fault should have been obvious l The simply changes his mind l The fault is due to wear and tear Credit: Carrie Morris Images: Peter Gudella / Shutterstock This is only a brief guide for the sale of motor vehicles. For more in-depth guidance see the Business Companion website or view a video on the subject.