Distance Sales

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Distance Sales (16 Articles)
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Is a ‘click and collect’ service offered by a car dealership classed as a distance sale?

The answer is generally no – a ‘click-and-collect’ style purchase is not usually a distance sale. This is because, whilst you might have placed the order online and paid a deposit, you will still sign the contract and any finance agreements, or pay the balance on site, the same as with a ‘bricks and mortar’ purchase.

As you have had contact with the seller on their premises during the process of finalising your purchase, the additional right to cancel your purchase within 14 days given by the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 will not apply. You will still have your statutory rights under the Consumer Rights Act 2015, which gives you the right to reject the car for a full refund within the first 30 days after purchase – but only if you’re able to demonstrate that the car doesn’t meet the standards required of it under the Act.

What happens if I want to return the car more than 14 days after taking delivery? 

After 14 days has passed since you took delivery of the car, you no longer have the right to automatically return the car without specifying a reason. You’re still protected under the Consumer Rights Act 2015, but this only allows you to return the car if it can be demonstrated that it isn’t of satisfactory quality, is unfit for purpose or isn’t as described.

What happens if the seller of the car won’t take the car back within 14 days if I have notified them within this period about the return of the vehicle?

If the seller won’t take back the vehicle, then it’s time to raise a formal complaint. We’d recommend putting your concerns down in writing, so sending it by post or by email, and giving the business up to eight weeks to investigate what’s happened and issue their final response. If they still refuse to take back the car, and they’re accredited to The Motor Ombudsman, then get in touch with us. We’ll look at what’s happened and, if we find something has gone wrong, we’ll find the fairest way of putting things right.

I’ve been offered a no-quibble, money-back guarantee for 14 days from the seller when I ordered and bought my car online and had it delivered to my home. Am I not entitled to this anyway by law when it’s a distance sale?

Yes, absolutely. Under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, you have 14 days after the date of delivery to give the car back to the seller and the right to a full refund without having to tell them why you’re handing the vehicle back. Any money-back guarantees offered by sellers, which could be shorter or longer than the 14 days you’re entitled to by law, are over and above your consumer rights and can’t be used to evade them.

For example, if a seller has a seven-day no-quibble money back guarantee, but you bought your car at a distance, you’ll still be able to take advantage of the 14-day cancellation period.

If I return the car within the first 14 days after delivery, will my finance agreement be cancelled at the same time?

All finance agreements include a 14-day cooling-off period from the date you signed the agreement. This should kick in at the point the finance company pays the dealership the price of the car so, if the car’s being delivered to your house, the start date of your cooling-off period may be different from the delivery date.

If you’ve bought the car on finance and you’re looking to cancel it under your distance sales rights, we’d advise you to get in touch with your finance company before you cancel, so you can make sure you’re able to hand the car back without any penalties.

Will my refund be subject to any deductions, if I caused damage to the car prior to notifying the seller within the first two weeks of ownership that I wished to return it?

Yes, if the damage goes beyond what could be considered fair wear and tear and wasn’t present on the car when it was delivered to you. This could include any kerb damage to the alloy wheels, dents, scrapes, bumps or scratches.

Will my refund be subject to any deductions, even if I have driven the car (e.g. 500 miles) before notifying the seller within the first two weeks of ownership that I wanted to return it?

According to the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (the Distance Sales Regulations), i.e. you have bought your car online, you’re allowed to use a product in a way consistent with you needing to test it out to see if it’s right for you. For example, if you’ve bought a car, you might need to drive a few miles to check that everything’s working and you’re comfortable. However, if you’d driven the car for 500 miles in the space of a week, then it might be fair for the seller to make a deduction for some of that use.

It’s also worth checking the terms and conditions of the contract. Some sellers will specify what deductions they’ll apply in the event of a return – for example, this could be a flat fee or a pence-per-mile deduction.

If I order and purchase a car online and collect it from the seller’s premises, can I still return the vehicle if I don’t like it?

In this scenario, your vehicle purchase would no longer be classed as a distance sale, as you have visited the seller’s premises in person when buying the car. Therefore, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 will not apply.

You’re still protected by the Consumer Rights Act 2015, which gives you a 30-day right to a full refund if the car isn’t of satisfactory quality, is unfit for purpose or not as described. However, you can’t get a refund for the car just because you’ve changed your mind about it.

If I wish to return a car within 14 days, can I still use it once I have notified the seller that I no longer want it?

Once you have notified the seller that you don’t want the car, thereby effectively cancelling the contract that you have with them, we’d advise you to immediately stop using the car, and making sure you maintain its original condition.

If I order and purchase a car online and have it delivered to my home, can I return the vehicle if I don’t like it, even if there’s nothing wrong with it?

Yes, under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, you have 14 days from the date of delivery to give the car back to the seller, and you have the right to a full refund during this time, even if you change your mind and don’t wish to keep the vehicle. You don’t need to provide a reason to the seller for the return of the vehicle within this two-week period. Make sure that if you’re looking to cancel the contract, you put this in writing – we’d advise not doing it over the phone.

Remember that if you don’t want to give back the car, you’ll probably need to return your V5C registration certificate (logbook) to the dealership and any accessories or extras that came with the car, like a spare key. It’s also worth checking your terms and conditions to see who’s responsible for bringing the car back and who will have to pay for it. This is particularly important if the dealership you bought the car from is a long way from you, as the cost of returning the car could prove expensive.

I wasn’t aware that my car purchase was a distance sale. Should the seller have told me when the vehicle was delivered, and does this affect my rights?

Yes, the Regulations say exactly what information should have been provided to you by the seller. If you haven’t been given information about your rights in relation to a distance sale at the point of delivery, including your right to cancel the purchase within 14 days, then you may have up to a year to cancel your order for the vehicle and receive a refund.

If I pay a deposit over the phone or online to reserve a car that I have only ever seen a picture of, is this is classed as a distance sale?

If you’ve signed terms and conditions and paid a deposit over the phone or Internet without ever visiting the retailer’s premises, and you have not ever seen the exact car you’re buying in person (i.e. not an equivalent example), this is classed as a distance sale. This means that you have the right to cancel your order within 14 days and receive a full refund of your deposit, regardless of your reasons or any money the retailer has spent on the sale. However, if at some point during the sales process you visit the dealership’s premises, this would no longer be a distance sale.

For example, you find a car you like online and you reserve it, paying a fee of £200 with your card over the Internet. You then go into the dealership to view the vehicle and sign the paperwork. This wouldn’t be a distance sale because you’ve visited the retailer’s premises during the sales process.

How do the Consumer Contracts Regulations differ to the Consumer Rights Act 2015, and do car buyers have the same rights under the two pieces of legislation?

All car buyers have protection under the Consumer Rights Act 2015, a key piece of consumer law in the United Kingdom. The Act says that any goods purchased by customers must meet certain standards, including that they must be of satisfactory quality considering their age, description and condition – amongst other factors, fit for purpose and meet any description given of them. The Act also sets out the remedies to which a consumer may be entitled if they buy faulty goods.

For people who buy their cars at a distance, normally online, they have additional rights under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. This is because people buying products at a distance don’t have the opportunity to view and inspect them before making their decision to buy, so the Regulations mean consumers have an opportunity to decide whether they’d like to keep the product or not, and can return it if they don’t want it without having to prove it’s in some way faulty or misdescribed.

I have a dispute regarding a distance sale. Is this something that The Motor Ombudsman can look at?

Yes, distance sales are covered under provision 2.12 in The Motor Ombudsman’s Vehicle Sales Code, which states the following:

“Where a vehicle sale is concluded at a distance, the accredited business will make clear your right to cancel within 14 days.”

If a dispute around a distance sale has not been resolved with a retailer that is accredited to The Motor Ombudsman, and the business has been given up to eight weeks to provide a formal response, you can then get in touch with us and we’ll see what we can do to help.

What UK legislation governs distance sales?

The UK legislation that covers the process of distance selling is called the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, sometimes referred to as the ‘Distance Selling Regulations’. It came into force in June 2014.

What is a distance sale?

A distance sale is defined as when a customer buys a product, such as a car, and the contract is formed completely at a distance. When we say a contract is formed, we mean that the consumer has made an offer to buy the product at a particular price, the retailer has accepted that offer, and payment (full or part) has been made by the customer.