Two weeks cooling off for online sales
Different rules to apply for cars bought on the Internet
CAR buyers who purchase their vehicle online will have up to two weeks to decide if they like the vehicle before they can hand it back with no questions asked, thanks to a set of consumer laws relating to goods purchased online.
The revelation comes as a growing number of manufacturers look to establish digital dealerships where cars can be ordered and bought entirely online.
Speaking to Auto Express, Marcus Hodgkinson, founder of Sophus3, a web analytics firm working with many of the UK’S car manufacturers, said: “BMW already has a digital avenue in place, and Vauxhall is working on one in Germany [via Opel]. There isn’t a single manufacturer that isn’t seriously looking into it.”
While vehicles and other goods bought at retailers fall under the Consumer Rights Act, goods purchased online fall under an additional set of laws. The Consumer Contracts Regulations (2013) give online buyers a 14-day ‘cooling-off’ period to decide whether or not they want to keep the goods. Within the 14 days they can hand back the product with no questions asked.
Consumer rights lawyer Joanne Lezemore said: “The [14-day] time starts the day after the goods are received, in which to cancel the contract and obtain a full refund of the goods and delivery costs.” Within the trial period buyers are still liable for any damage and diminished value for the goods.
Lezemore added that guidance published by the Directorate-general for Justice states that buyers won’t be able to extensively test products during the two-week period, meaning lots of mileage will probably result in depreciation penalties.
However, Auto Express understands online retailers allow a mileage limit of around 100 miles before charging for depreciation. Any car, despite the mileage and condition, can be handed back after two weeks, but buyers will likely face penalty fees. Manufacturers will also have to be transparent about the trial period, as Lezemore says that if buyers aren’t made aware of their rights, the trial period is extended to 12 months. “They could use the car for up to 12 months and then return it, and the seller could not charge for the consumer’s use during that period,” she said.
“A growing number of car manufacturers are looking to establish digital dealerships where cars are bought online”