any - used car warranties

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Sat 13 Nov 2010 13:25
any - used car warranties - sole trader

Can anyone tell me the law on used car warranties. I am thinking of setting up as a sole trader selling cars top the trade and public. If I retail a car to the public do I have to provide a warranty. Is there a limit on the retail selling price at which you don'y have to provide a warranty?

I am told that I must provide at least a minimum of a 3 month warranty when I sell a used car to the public as a sole trader, is this correct?

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Sat 13 Nov 2010 13:56
any - used car warranties - bonzo dog

Hi ST, despite what most of the public & dealers think, there is no law specifically stating you have to provide a warranty.

However the goods have to perform as they are supposed to given the age, mileage & price. Perform includes durability & reliability & there is no definition of what this entails - it is up to the court to decide on the individual merit of each case before it.

What the law does say is that if the goods fail to perform as they should (???) within the first six months of ownership, it is deemed that the goods were faulty at time of sale unless the dealer can prove otherwise. If you have pointed out to a customer a defect prior to sale, this would not apply to that particular defect.

I certainly know of cases where trading standards have told dealers to fix major problems (eg complete engine or gearbox failures) at month 5, in the expectation that a court would say the same. On the other hand if an electric window motor failed on a 10 year old car at month 5, it is unlikely the court would insist on a repair.

What a warranty does give is additional confidence in the vehicle to a customer & help him to make a positive decision. It will also mean that should the car have a costly failure, neither you nor the customer is having to fork out.

Good luck with your venture

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Sat 13 Nov 2010 14:06
any - used car warranties - sole trader

Thanks for that, it really helps. I probably will provide a 3 month warranty as the cost for this is minimal and as you say it will install confidence in the buyer and also provide me with some level of protection with regards to any mechanical faults.

Thanks.

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Sun 14 Nov 2010 06:28
any - used car warranties - LucyBC
The warranties are cheap because they are borderline useless and also offer you as a dealer very little protection in the first six months after the sale.

If you are selling decent quality vehicles you would be better off joining 24Cover's Dealer Club.

You pay to join but you get discounts on your Traders Insurance and it comes with legal support on disputes with customers on Sale of Goods Act Issues.

Furthermore if you pass leads to us at time of sale we will provide your customers with 7 Day Drive Away Insurance and you with a commission on any subsequent sale of motor insurance, GAP cover, breakdown cover and a decent warranty which will take them well beyond the six months you are liable to them under the Sale of Goods Act issues.

The commissions you will make are likely to far outweigh your membership fee and you will be providing your customer with a useful service that will protect you and them if the car goes wrong.

Contact me via lucy.bonhamcarter@autolaw.co.uk if you need more information.
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10 warranty myths exposed

Here’s how to sort the fact from the fiction when it comes to car warranties.

Cheap Car Warranties

Our honest used car pricing is a little bit different to all the others. You can get to our values through make or model - you don’t have to follow a prescribed route. Plus, it’s live, which means we can react to changes in the market quicker than any printed price guide.

Honest Used Car Prices