Fair trading, accurate descriptions and Trading Standards

If you sell used vehicles, you must ensure that the descriptions are listed accurately. This includes the mileage, condition, history and specification. This type of information will likely affect a consumer's decision whether to purchase the vehicle. These descriptions are controlled by the Consumer Protection from Unfair Trading Regulations 2008 (CPRs).

How to ensure accurate descriptions are applied

To comply with the law, a trader and their employees need to show that they took all reasonable steps to trade fairly and honestly with their customers when selling used vehicles. This practice is known as acting with due diligence. Reasonable steps you would carry out as a trader include:

• When buying motor vehicles always ask about their mileage and make sure it is written on the purchase document and not given verbally. Get the seller's signature declaring whether the history is correct, incorrect or unknown.
• Do not rely solely on the mileage statement of the previous owner unless they are the original owner. Only offer a vehicle for sale as genuine mileage when the full mileage history is known.
• Check the vehicle’s history. For example, whether it is recorded as stolen, is subject to outstanding finance, has been written off as an insurance loss or accident damaged.
• Check that you have the right to sell the vehicle. For instance, is the vehicle still subject to a hire purchase agreement. If yes, you do not own it.
• When inspecting a vehicle, make sure that the overall condition, both mechanically and physically is consistent with its age. Look at the vehicle's service history and MOT history to determine if there is a consistent increase in mileage over time.
• Inspect the vehicle yourself including reading the service history and contacting traders who have previously serviced the vehicle to establish that the service history is correct and keep a record of this inspection.
• Ensure that all staff who may meet customers are properly trained and instructed in these matters and have access to all relevant details (for example, purchase invoices and results of any checks made).

What is unlawful – mileage description

The mileage displayed on a vehicle odometer should accurately represent the distance the vehicle has travelled. Displaying an incorrect odometer reading may be a misleading action. To comply with the law, you must tell the consumer the accurate mileage, as failure to do this may be a misleading omission.

There are several practices that are prohibited, including: 

• Making a misleading statement about a vehicle’s mileage, such as altering the odometer to a lower figure or zero, or making other false claims in writing or verbally.
• Selling a vehicle that has been subject to a prior misleading action or omission. This could include having the vehicle on the forecourt, selling it with an incorrect odometer reading or not informing the consumer of the actual mileage.
• Having false mileage in an advertisement, for example, 'low mileage' stickers.
• Not telling the consumer the odometer reading or the fact that an odometer unit was faulty and replaced (either with a new or second-hand unit) may be a misleading omission.
• If the accuracy of the odometer reading is in doubt, you must make this clear to prospective customers. This is usually done using disclaimers (which obscure the entire odometer reading). It is always advisable to use disclaimers to avoid the potential false mileage description being read by consumers.
• It is not sufficient to disclaim all mileage without carrying out checks to confirm their accuracy. Even if a trader wasn't aware that the mileage was wrong, their actions could still be against the law.

You should be able to show that you have checks in place to verify the mileage on the odometer and show that these checks are carried out. However, despite having these checks in place, verifying the mileage recorded may still be impossible, and you should state this to customers.

What is unlawful – description of used vehicle sales 

Examples of unlawful trading practices include:

• Having false information in an advertisement. For example, ‘in excellent condition’ or ‘drives like new’ when you have knowledge of an existing fault with the vehicle.
• Making incorrect statements or not informing consumers of the correct service history, previous accident damage, number of previous owners, technical specification (e.g. engine size, miles per gallon), insurance grouping or environmental performance.
• Misleading consumers by making them believe they have no right to redress under the Consumer Rights Act, using statements such as 'sold as seen' or 'trade sale'.
• Hiding additional costs. For example, administration fees, delivery or other non-optional charges.
• Not disclosing that a vehicle was previously used for business purposes, such as rental or taxi.

The CPRs list banned trading practices which are considered unfair and provide a defence to any criminal charges. For example, a banned practice includes claiming or creating the impression that you are a private seller when you are a trader. A full list of the 31 banned practices can be found in the Consumer Protection from Unfair Trading Regulations 2008 (CPRs)

All unlawful practices can be made verbally, in writing, visually or by association. They can be made by anyone in your business, including staff members. Businesses, business owners and staff members can all be held accountable for their actions.    

Used vehicle warranties

Any warranty or guarantee you supply free of charge or sell separately with a vehicle is in addition to a consumer's legal rights under the Consumer Rights Act 2015. You cannot refuse to deal with a complaint because it is excluded from a warranty, or the warranty period has expired. Any warranty you give is legally binding.