Selling a car over the phone

[Max Branning 149]

Ok so a customer has rung me late last night and wants to buy a car without seeing it. They also want us to arrange delivery which is no problem. I have only ever done this once before and that was to a customer around 20 miles away but this customer lives nearly 200 miles away!

I am a bit worried with the new consumer laws ets and whether its best to take a debit card payment or bank transfer may be better to avoid chargebacks?

Any advice appreciated.

[Trident 24]

Hi Max, Be very careful, if it was me, i would only accept cleared funds by bank transfer into account, i would charge a delivery fee of say £1 a mile, which is non refundable if he changes his mind on arrival, but foc if he accepts it. Do a full test drive and pdi check on arrival, take a copy on your phone of his driving licence and make sure the delivery address matches it... if he is genuine non of this would be a problem, a scam and he will cough and splutter...good luck, boom another one...

[Rory RSC 596]

I would do it. Ask for a bank transfer for payment in full and get them to put the reg number as the reference. 

Alternatively take the card payment over the phone using post code and house number to ensure a match. Then when delivering the car ask to see the card they used to pay along with photo ID.

Personally I would be delivering the car as a delivery agent not arranging a test drive etc on the customers door step. In my opinion you are delivering a car that is sold and purchased not travelling 200 miles for a customer to have a think about it and try and haggle you down on price. 

We have probably delivered 4 cars over the last 6 weeks and they do tend to go smoothly. I always vet the customer as much as possible over the phone, google search the location, ask the customer if they are happy to drop the driver at the nearest station. 

Most people/customers are nice and not scammers.

Get it sold Max another one out the door.

[Jack Regan 116]

Don't they have even more rights under the Distance selling regulations, think they have a cooling off period... basically they can use it for a period of time then if they change their mind then they can just back it, I'd look into it if I was you .

[Cornish Guy 45]

If you do not have distance selling regulations stipulated in your terms and conditions then the can legally return goods up to 90 days.

You are liable for the return!

[Andy Entwistle 96]

Max

The gents are correct, as you are selling the vehicle this way it will be subject to distance selling. The recent changes to Consumer rights also strengthen their rights. There may be some genuine people, particularly if it is a rare car or specific test, but if not i would ask why they are doing it this way.

I assume you will be adding a non refundable delivery charge, the only problem is if the car car does go wrong youw ill end up paying to get it back !

 

[SC Derby 259]

If you deliver it to them and get them to inspect it before purchasing does that then negate the distance selling bit.

My thoughts on that would be make them pay £150-£200 up front for delivery and that is lost whatever. Then get them to expect the car as they would in the showroom and pay via bank transfer there and then in happy. Can't see whys thats any different to normal?

 

[sk 4]

bank transfer in full before hand,charge for delivery..non refundable...make sure you right on the invoice that the customer covers any cost of returning the vehicle if needed....got caught out once before from a chap in scotland that wasn't happy with a small scratch on the bumper and a small mark on interior trim...he new his rights and said come get the car or ill go to court or give me £££ back....wasnt worth the hassle so suffered a £300 loss of profit

[Jack Regan 116]

I'm sure where distance selling is concerned ...I read somewhere if you customise the car in any way for the customer which includes taxing it for them, then they lose the rights they have of just being able to return the car.

[jamslug 91]

Be extremely careful and only accept a bank transfer as payment. DO NOT ACCEPT A CREDIT CARD OVER THE PHONE 

[Gavin@Rousdon 137]

Its an old scam, Car paid for over the phone, get delivered and then the card payment is subject to a chargeback. You lose the money and the car. If the customer in genuine they will work around the problem as it's a problem they will find with lots of dealers they call. 

[Rory RSC 596]

 There are genuine people who will pay in that way for the vehicle. If you see the card, the person had photo id and a proof of address in reality there will be no issue.

 

 

 

 

[LawJaw 50]

On premises sales, off premises sale and distance contracts …All of these are caught by The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 which came in last year.  

Most sales by our dealers will be subject to the ‘on premises’ sales rules within the Regulations given that an on ‘on premises’ sale is defined in the Regulations as:

A contract between a trader and a consumer which is neither a distance contract nor an off premises contract.

So on a very general level, if you are not operating an organised distance selling scheme or going to people’s homes to complete a sale, you will be selling by way of ‘on premises’.

The fact that these Regulations contain the word ‘information’ in their title does give a clue that even ‘on premises’ sales require you to give certain information to your customers. The required information is set out in Schedule 1 of the Regulations and includes the requirement to provide your complaint handling policy.

To check if you are complying with all the information requirements, do check Schedule 1 .
 
For more details on the updated Distance Selling Regulations you can listen to our podcast .