8:17 am, November 8, 2024
Used car dealers advertising cars as ‘spares or repairs’ need to be incredibly careful they meet their legal obligations first.
Often used car dealers may take in cars that are beyond repair, but too good to scrap – so how can they legitimately sell them on without landing themselves in trouble with the law?
Car Dealer spoke to Owen Kennedy, senior Trading Standards officer at City of Doncaster Council, who warned dealers to be cautious.
He said there are two potential pitfalls – one being consumer rights, and the second, obligations under ‘road traffic laws’.
He said: ‘The consumer issue is really that the item needs to be adequately described, and any material information disclosed that might affect a consumer’s transactional decision. Otherwise offences under the Consumer Protection from Unfair Trading Regulations could be committed.
‘The road traffic consideration is that the selling of a vehicle that is unroadworthy is also an offence against S75 of the Road Traffic Act 1988 unless one of a few conditions are met.’
Kennedy explained that those conditions include:
- The vehicle is sold to be exported outside of the UK
- There is reasonable grounds to believe that the vehicle will not be used on a road unless fully repaired
- Or, if as a trade seller, they took reasonable steps to ensure the buyer knows that the vehicle cannot be used lawfully on a road
Kennedy said that Trading Standards advice was that the car is clearly marked if on display on a forecourt as being for parts or breaking only.
He added: ‘The buyer should be asked to sign a document stating that they know that the vehicle is not lawful to drive on the road, and must be collected by transporter/trailer.
‘We would suggest that no MoT Certificate is given with the vehicle, even if one is still current.
‘A trader who was found to be selling their cars as scrap simply to evade their responsibilities as traders could well face prosecution. So we would not expect to see many vehicles like this on a typical forecourt.’
Kennedy added that the ‘safest way’ to dispose of cars of this type would be to scrap them.
Car Dealer also spoke to Joel Combes, from motor trade legal experts Lawgistics, about the issue and he said his company provides clients with the relevant documents to enable a sale of this type to take place.
However, he also issued a word of caution saying dealers need to make it very clear that the cars being sold for spares or repairs cannot be used on the road until they are fixed.
He said: ‘An MOT is only valid on the day it is issued so even if a car has a valid MOT and is unroadworthy that does not mean you are safe to sell it.
‘We provide a detailed form that lays out clearly the stipulations the buyer must adhere to. Our clients can find it in their warranty portal.’
