COVID-19: Do your T&C's include a Distance Selling cancellation clause?

[LawJaw 50]

In a perfect world, car dealers want their showrooms to be full of stock, with significant numbers of prospective buyers milling around, sitting in cars, test driving, chatting to sales-staff and then driving off in them happy with their new purchase.

 

But today is not the perfect world and won’t be for some time.  A number of clients are wishing to deliver cars to customers at their home (self-isolating permitting!).

 

As this could be considered running an organised distance selling scheme, customers could have the right to cancel the contract for UP TO A YEAR after delivery if they are not advised of the right to cancel the contract.

 

Car dealers can also be prosecuted by Trading Standards.

 

Where a consumer (not a business buyer) has a car delivered to them and where they have not visited the showroom beforehand, we suggest the following is given to consumers either separately (in person at handover) as well as in your terms and conditions online.  Ideally, you should retain a copy of this clause with their signature signalling that they have received the notice - to ensure that they know they have the right to cancel.

 

Do note that the mile limit and fee per mile travelled over that limit is for each dealer to decide and this example is indicative only.  You cannot, though, allow for a 20 mile limit and £20 per mile driven over that amount!

 

Lawgistics suggested wording:

Cancellation under the Distance Selling Regulations

 

Ordinarily we do not run an organised distance selling scheme.

 

However, due to the coronavirus outbreak we need to support our valued customers by delivering your vehicle to your home.

 

If you have ordered and taken delivery of your vehicle without visiting our showroom and you are not buying the car in the course of your trade or business, the following cancellation clause applies:

 

• You have 14 days to get to know your new vehicle and to make sure it suits you.  If you change your mind just let us know in writing by post [insert address] or in email to [insert email address] and to reach us by 6pm on the 14th day following delivery and we will come and collect the vehicle for a refund.  
• We cannot accept a return of the car if it has been damaged, modified or altered from the condition it was delivered in.
• An excess mileage charge of £1 per mile for any mileage over 150 miles in those 14 days will apply.  If you do change your mind you cannot use the car once you have notified us - but you must still tax and insure the vehicle until it is collected.

 

This cancellation (change of mind) clause does not affect any separate rights given to you in The Consumer Rights Act 2015 or the Sale of Goods Act 1979 (as amended).

[Stalker 180]

Thank you very muc LawJaw. This is a good help for many dealers on here. 

[BIGNIT 4]

When a customer wants to have the car delivered without seeing it first. We charge the customer delivery, we do not take any payment for the vehicle. They then get to view/test drive at their home. They then decide if they want to purchase the vehicle after they have seen/driven it. There is no obligation to buy, but they lose the payment for delivery if they don't.

Would this be classed as distance selling? I cant see that it would as the customer is viewing/driving the car before they decide to buy or not.

 

 

[Holmfirth Cars 12]

excellent tip / Many Thanks !!

[LawJaw 50]

37 minutes ago, BIGNIT said:

When a customer wants to have the car delivered without seeing it first. We charge the customer delivery, we do not take any payment for the vehicle. They then get to view/test drive at their home. They then decide if they want to purchase the vehicle after they have seen/driven it. There is no obligation to buy, but they lose the payment for delivery if they don't.

Would this be classed as distance selling? I cant see that it would as the customer is viewing/driving the car before they decide to buy or not.

 

Hi BIGNIT,

This is NOT distance selling but it is a contract concluded away from the business premises and that is subject to the same cancellation notices, periods and rights as distance sales.

It's called an 'Off premises sale' which was originally designed for unsoliceted callers. This is not the case now as the legislation also applies to those who are invited by the consumer.

Off Premises Sales Checklist for Car Sales

All the following information must legally be made clear to the consumer BEFORE the customer is bound to make the purchase. All are required by law but failure to comply with the cancellation requirements (marked with an *) can lead to a fine and criminal conviction.

 Each vehicle’s main characteristics. Be aware of pre-populated descriptions as these are likely to give the customer a reason to seek a refund or price reduction if an item is listed but not actually on the vehicle.

 Your correct trading name.

 Your geographical address, telephone number, fax and email address.

 If you are acting on behalf of another trader, that traders geographical address and identity.

 The address for any complaints.

 The total price inclusive of VAT.

 Any delivery or actual or potential additional charges.

 Payment and delivery arrangements and timescale.

 Your complaint handling policy.

 *Conditions, time limits and procedures for exercising the consumer’s cancelation rights - see model form. NB Failure to provide this information can not only lead to the cancellation period being extended to 12 months but it is a criminal offence under Section 19 of these Regulations.

 That the consumer will have to pay the cost of returning the vehicle and your reasonable costs if they choose to cancel

 If you believe there is no right to cancel (and be very sure about this as you could end up with a fine and prison sentence if you are wrong) you must tell the customer that they have no right to cancel.

 A reminder that you are under a legal duty to supply goods in conformity with the contract.

 Conditions of any after sales support and/or warranty terms.

 Any code of conduct you must meet for example, as part of a trade membership.

 The conditions of any deposit to be paid by the consumer.

 Details of any mediation service you are bound to offer under any Trade Association Membership. Once the contract is signed you must give a copy to the consumer and it must have all the above information as part of it, unless you have already given the above information separately.

Once the contract is signed you must give a copy to the consumer and it must have all the above information as part of it, unless you have already given the above information separately.

[BHM 994]

.......and after you’ve presented that to the prospective customer don’t expect to hear from them again. 

If only the public understood, however many will use it as an opportunity to back a car. 

Edited March 21, 2020 by BHM

[Boycie 30]

Interesting. How do Cazoo cover this?