Hole sale

I have a query regarding TRADE sale by which I mean cars sold on trade terms. I have read your FAQ section, in which you say, a car bought on Trade terms cannot be rejected under Sale of Good Act if something goes wrong. Many Trading Standards website say trade sales cannot be made to the general public because a trade sale is a trade between 2 traders. They say it is illegal and car traders are trying to work around the Sale of Goods Act. The general public are not traders and any signed receipt saying TRADE SALE NO WARRANTY IMPLIED OR GIVEN is void. If anything goes wrong with the car after sale, they can have redress against the trader. Can you please clarify?

Asked on 15 August 2009 by

Answered by Honest John

If a car is sold to you at a trade price (as if you are a trader), then the car is sold on trade terms. Anyone can trade cars. But if the trader selling the car pretends it is sold on trade terms, yet charges a retail price, or sells the car with an aftermarket warranty, then that is a retail sale and is governed by the various Sale and Supply of Goods acts and case law on them.

Tags: traders legal issues

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