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Warnings from the trade experts about new auction rules
publication date: Feb 15, 2010
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author/source: Robin Roberts
Private buyers will get additional protection at auction sales under Government plans which have raised warnings from industry experts at Glass’s Guide. Glass's recently attended a workshop at the Office of Fair Trading, to discuss the OFT's draft guidance for second hand car dealers. Whilst the guidance is being produced primarily for traders, the OFT feels that "it will also be of use to enforcers such as Trading Standards officers, and to consumer advisors in understanding how the law applies to this sector." Though the primary focus is on used car sales made through forecourts or other trade premises, the OFT says it will also be of relevance to dealers who sell to consumers via auction, as part of compliance with the Consumer Protection from Unfair Trading Regulations 2008. Unsurprisingly, this view brought forth strong reactions. The increased risk inherent in a sold-as-seen auction sale has led to lower prices than if bought privately, which has attracted many amateur bargain hunters to the auction halls. The OFT believes that, as 7pc of consumers now buy their cars from auction, consumer protection legislation must apply to cars bought in this way, a rationale most dealers will find difficult to accept. Unlike retail cars or cars sold in private sale, auction cars are sold in quick succession via an intimidating trade arena. The majority come untested - the trade off for increased risk being lower prices. It makes no sense that cars bought in this way should be afforded the same consumer protection as those bought through retail channels, governed by the Sale of Goods Act. Should the guidance adhere to this position, the consumer will be the ultimate loser, as auction houses close their doors to private buyers, and dealers either send older part exchanges straight to the crusher, or simply refuse to accept risky prospects. Such cars will still enter the market through private sale, from sellers who wanted the ease of trading in but were unable to get it, to buyers who have had to do many more miles in search of a vehicle. The guidance will have inconvenienced those involved in the transaction every step of the way: hardly the result a consumer watchdog wants to see. |
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