Private sellers have many options when looking to flog their used car, but whether you are looking to sell your pre-owned Jaguar through part exchange or your old Peugeot 205 on eBay you should be aware what your legal obligations are.
Selling.On the Roadside
It is perfectly legal for private sellers to sell an old car on the roadside, but many dodgy dealers, avoiding legal obligations and flogging substandard vehicles, often use this method. Avoid parking your car in a lay-by or on a road that always appears to have cars for sale along it, people will be more wary if it looks like the car is being sold by a dealer acting as a private seller.
If as a private seller you have more than one car to sell you should be aware that you may need to prove that you are not acting for the purpose of a business as the Clean Neighbourhoods and Environment Act 2005' makes it illegal to have two or more vehicles for sale parked on a road within 500 metres of each other.
Also remember that it is illegal for an untaxed car to be on the road so even if you are no longer driving the car tax is required for any car parked on a public road.
SellingThrough an Online Auction Site
eBay Motors is the UK's largest online automotive marketplace with a car being sold every 2 minutes on the site. Three million visitors use eBay Motors each month, that's a whole lot of potential buyers!
As important as it is to make your eBay listing as attractive as possible, do not lie or leave out important points about the cars condition. Under the Sales of Goods Act 1979 you have a legal obligation for the goods you sell to be "as described".
When a buyer successfully bids on an item you have both entered into a legally binding contract and as long as you have been as honest about any faults the buyer is legally obliged to pay up. eBay warn buyers to beware of sellers asking for down payment to reserve any item', particularly large items like cars.
Selling.By Part Exchanging
When part exchanging your old car for a new motor you are unlikely to get as much as you would if you sold privately, but it is a quick and hassle free and is still a popular choice with motorists. A dealer does not have to agree to a part exchange and can offer as little as they want for a part exchange deal; likewise you are not obliged to accept if you think the price is unreasonable.
Whilst you are not legally obliged to tell a dealer about any faults with the car it could be considered a moral duty! If the dealer finds any faults after the part exchange contract has been signed the dealer would have to prove that you knew about the faults prior to signing the contract and more often than not it is less expensive for them to just fix the faults.
The dealer will require the logbook, to prove you are the legal owner, and most dealers will expect a current MOT certificate.
Selling..At a Live Car Auction
If you are selling through a live auction you may be required to supply an accurate description of the car to the auction company, although this may not be revealed to potential buyers unless the auctioneers chooses to. Buyers at car auctions are expected to be knowledgeable about cars, the cars are therefore sold "as seen" with fitness for purpose, satisfactory quality or roadworthiness determined by the buyer. The buyer's rights under the Sales of Goods Act may be excluded.
The auction house is required to check you, as the seller, are the legal owner and that the car bears the correct registration mark and chassis number (i.e. is not stolen), beyond that once a car has been bought through a live auction neither the private seller or auction house is liable for any problems.
