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Trade Sale – Sold As Seen

9th May 2014

When you sell a used motor vehicle to a retail customer, you are entering into a legally binding contract. The customer has the right to expect the vehicle to be of a satisfactory quality; fit for the purpose, and, as described.

As a trader, misleading consumers by using phrases such as “Trade Sale – Sold as Seen” or “No Refunds” is not only illegal but also completely voids the contract.

The only occasion whereby this term could possibly be used, is for private sales. A private sale is defined as a private individual selling to another private individual, not a trader selling to a private individual.

For dealers selling used vehicles to other traders, it is a pointless activity using the term ‘Trade Sale’ as this is implicit, i.e. stating the obvious. In short, “Trade Sale – Sold as Seen”, should never appear on your customer invoices unless you would like a meeting with your local trading standards officer and it is a waste of your time if you are selling to another trader. So, don’t do it – you have been warned!

For further guidance on compliance with Consumer Protection from Unfair Trading Regulations 2008 and the Sales of Goods Act 1979, the Office of Fair Trading has produced a pdf guide especially for second hand car dealers.

The guide is available here. The Road Traffic Act 1988 also lays out a detailed guide.

To find out more, visit http://www.legislation.gov.uk/ukpga/1988/52/section/75



Dragon2000 have been helping dealers and garages drive their businesses forward since 1995. Talk to our team today on 01327 222 333 or email sales@dragon2000.co.uk to find out how our dealer management system, car dealer websites and mobile apps can help your business increase profits and reduce costs.

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