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Harder To Be Used Car Dealer With Consumer Rights Act

Entry Point Higher Due to 2015 Legislation

According to the RAC, the entry point into the used car market for dealers could be as high as £2000, because of the Consumer Rights Act.


The RAC have said that it would be difficult to sell a car that meets the requirements of the Consumer Rights Act for under £2,000, AM Online have reported.

What Is The Consumer Rights Act 2015?

The Consumer Rights Act 2015 allows anyone buying goods to be given a full refund within 30 days of purchase, if the product has a fault. After that period of time a consumer has six months to demand a fault product be repaired or replaced. If a repair has been unsuccessful, the consumer can them demand a full refund. In most cases no deduction can be taken for use of the product, however the exception is motor vehicles.

Consumer Rights Act And Brexit

Which? have said that there are no immediate changes to consumer rights following the referendum. Its website says: “The negotiations around our withdrawal from the EU will be lengthy, and there will be no immediate change to your consumer rights when you buy or sell goods and services, or travel abroad. Which? will work with the Government to ensure that the consumer voice is heard throughout this process and your consumer rights are protected.”


Corporate and Independent Dealers Direct or at the Warranty Group, Sean Kent, said: "We are not saying that all cars priced below £2,000 are of poor quality or that dealers operating in that sector are not operating with customer interests at heart. But what we are hearing increasingly from independent dealers is that the cost of acquiring a car and selling it to the standards required by the Consumer Rights Act is difficult to achieve for much below this figure. It is not a hard and fast rule but it is definitely a trend that we are increasingly seeing across the market and chimes with other recent reports that small franchise dealers have abandoned the sub-£1,500 sector. In effect, the Consumer Rights Act is causing a shift in this sector, meaning many dealers are choosing to move into a slightly higher price bracket and changing their proposition."