Car manufacturers and the iPhone generation

548 More

Earning the right to be successful

535 More

Knowledge is power

609 More

Selling cars – it’s all about timing

852 More

Truemag

  • Home
  • About
  • Advertise
  • Archives
  • Contact
  • Subscribe

OFT takes action against used car supermarket Carcraft over sales practices

The OFT has taken enforcement action against Carcraft, which has 11 car supermarkets across England and Wales, over concerns about its business practices when selling cars, finance and after-sale guarantees.

Following its investigation, the OFT believed that Carcraft:

  • Was not always properly carrying out the comprehensive pre-sale vehicle inspections it advertised, with customers complaining about vehicles suffering significant problems shortly after purchase.
  • Did not always meet its legal obligations to repair or replace cars when cars sold were not of satisfactory quality.
  • Did not make clear to some customers the terms of motor finance, such as the level of repayments or that they were signing more than one finance agreement.
  • Gave some customers a misleading impression about the scope of the after-sale vehicle guarantee, or that the guarantee was free when in fact it was being charged for.
  • Allowed some customers to drive vehicles off its premises without valid road tax.
  • Carcraft fully co-operated with the OFT’s investigation. Whilst the company said it believed that its business practices complied with the law, it has made changes to its practices and given undertakings about its future conduct, which address the OFT’s concerns.

    Cavendish Elithorn, Senior Director of the OFT’s Goods and Consumer Group, said:

    ‘Car buyers often choose to purchase from a large dealer in expectation of peace of mind. Carcraft promised customers that it aimed to help them ‘find the perfect car with confidence’, but we don’t think its practices ensured that it always lived up to expectations or met its legal obligations. We welcome Carcraft’s undertakings which should ensure customers are treated fairly.

    ‘The industry should take note of our action against Carcraft as it shows that dealers will face enforcement action where their practices cause serious problems for consumers.’

    Last year’s OFT market study into second hand car sales found that the market was often not working well for consumers. The results of that study led the OFT to warn used car dealers they must comply with the law or face enforcement action.

    The OFT will shortly be launching a consumer campaign to increase awareness of consumer rights when buying a used car and where consumers can go for advice should they encounter problems after they buy.

    Nov 10, 2011MTI
  • The world of car sales is definitely evolving
  • Used car sales on dealer finance up 21% in August but new car sales suffer
  • Car finance refusals still hampering sales growth
  • Decline in Spanish new car sales slows as scrappage takes effect
  • Vehicle traders call for action as slump goes on
  • Dealer reports surge in drop-top sales
  • First pictures of new Kia Ray city carA car sales person with a certain je ne se quoi
    MTI
    9 years ago Consumer, News43
    Most viewed
    Top 100 UK Dealer Groups
    38,736 views
    The car sales process and the “9 point plan”
    10,813 views
    webuyanycar review – They will buy any car but beware of the asterisk
    5,490 views
    Most commented
    Car sales and the power of silence…
    25 Comments
    Car dealers still not prepared to play the “we buy any car” game
    23 Comments
    A Traders Tale – Part Four
    22 Comments
    Win a pre-loaded Ipod Shuffle!
    19 Comments
    Bargain of the Week – StreetKa 1.6i Luxury
    14 Comments
    Bridal Hair Berkshire
    Fox Body to 2018 Mustang Parts
    and Accessories
    About MTI

    Motor Trade Insider
    is written by people working actively in the motor trade for people on the inside and people on the outside.

    Our aims
    Build a bridge between consumers and the trade, create Interesting and informative content, break down barriers and create better understanding, expose bad practices and rip-offs and promote outstanding products and service.
    Have something to say?
    We are always looking for experienced writers who can write good original quality posts on motor-trade-insider.com. Please contact us if you would like us to consider you. Make sure you give us details of your own blog or a link to some articles you have written.
    2017 © Motor Trade Insider
    Truemag theme by StrictThemes