Motor Trade Insurance

Dealers - Steer clear of 'one owner cars'!

Daily Telegraph readers received a front page warning that their 'one owner car' may be ex-rental. Of course this story is something that car dealers should beware of.

The paper has carried out an investigation, and alleges that ‘tens of thousands of used car buyers have unwittingly bought former rental vehicles from official dealerships’.

This, continues the paper, has led to some paying ‘thousands of pounds over the odds’. They thought they were buying one-owner cars, but the models have in fact been used by ‘dozens of drivers’.

It has been made possible two of Britain’s biggest car hire companies using a ‘front’ firm, says The Daily Telegraph. This used an abbreviated name to register vehicles, so car buyers wouldn’t know it was a rental company from the documents.

A move, reckons the paper, that could lead to the OFT investigating car dealers further. It is already looking at the £35 billion used car market…

… And apparently is preparing to publish fresh evidence on ‘when companies should be prosecuted for misleading buyers.’

The paper reports how some Volkswagen customers, for example, have been mislead. One owner bought an ‘ex-VW’ Passat, which was previously registered to ERAC UK Ltd.

This turned out to be Enterprise Rent-A-Car. ‘Shady trading,’ said Norman Baker, Lib Dem transport spokesman, ‘in an attempt to get higher prices for vehicles’.

Traders should look closely at a vehicle history prior to considering a purchase in order to avoid potentially handing over too much money.