Diary of a DMS Guy

They most certainly can!

There was a recent story in the news of a Car Dealership who had two cars returned for refund 12 months after purchase.  (see https://www.am-online.com/news/latest-news/2022/09/16/solicitor-exploits-legal-loophole-to-gain-full-refund-on-two-teslas-after-a-year-s-ownership)

The refund was claimed under the Distance Selling Act Regulations.

But, hang on, don't the Regulations only give 14 days for the Consumer to Return any goods buy online ?

The Distance Selling Act is very precise as to how it should be applied and puts the onus very strictly on the dealer to provide information to the consumer of his rights.  

If he does this correctly, the Consumer only receives 14 days with which he can cancel the transaction and return his car.

Don't get this wrong!

Get it wrong, and the legislation then states that the Consumer then has a Right to Cancel period extended to One Year and 14 days.

You definitely don't want to be getting this wrong!

The first key thing is to be able to identify when a Distance Sale has taken place.  This in itself isn't always straightforward.

There is a difference between a "distance" sale and a contract concluded away from the sellers trade premises.   For example, it probably doesn't apply to Financed Sales (as he Finance company is the buyer of the car and isn't a consumer).  

So, as a dealer it's important as a first step to identify whether your transaction is actually covered by the act.  Lawgistics provide a excellent article on line  (https://www.lawgistics.co.uk/blog/legal_updates/covid-19-the-distance-selling-cancellation-notice/)  on this.

Once you've identified a Distance Sale has taken place, it's then absolutely critical that you provide the correct notification to the customer of his Rights to Cancel and how to do this.

Again, Lawgistics have created some great templates for this - see  their article at (https://www.lawgistics.co.uk/blog/legal_updates/is-your-distance-selling-paperwork-up-to-date/)

However, it's easy to get it wrong, and in my experience it's often easier to cover with an explanation of when the Distance Selling Act applies into your order form and then always include the Distance Selling Terms.

For Navigator users, it's very simple to create two sets of Terms and Conditions, one for non-Distance Selling Sales and one where the Act applies.   It's then important that you are very clear as to when the Act applies and doesn't within the dealership!

There are other implications, for example not registering the car as a sale with the DVLA until the 14 day period concludes, to ensure that if returned, you've not added an extra owner!

What to do ?

My advice is simple :-

1. Check that you understand what you do today in terms of Distance Selling
2. Check the regulations with what you should be doing - use experts such as Lawgistics (https://www.lawgistics.co.uk/) to ensure you have this correct.
3. Document how the Distance Selling Act applies to the sales that you make - ensure that everyone involved in  the Sales Process  fully understands this.
4. If you take deposits or sell cars online, ensure that the documentation on the web site makes it very clear when this is a Distance Sale and that the terms are clear there too!
5. Review your Sales Order forms to ensure they are fully compliance.
6. Don't take any of what I've said as Legal Guidance - I'm not qualified! Use an expert like Lawgistics who is!
7. Do it today!

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