AM Online

Pre-registration u-turn by OFT

The Office of Fair Trading has withdrawn its decision, announced on AM-online on June 13, to allow dealers to sell pre-registered cars without keeping them for three-months.

The OFT has been in legal discussions with their advisors for five months regarding the rule change. The Government body decided to change its mind after it came to the conclusion that the revised ‘Supply of New Cars Order’ was ‘incorrect’.

The RMI National Franchise Dealers Association said the OFT ‘has to date refused to issue a statement to remove industry uncertainty and explain why there has been a change of mind’.

In the absence of a statement from the OFT, the latest ruling would appear to restore the situation that a dealer who voluntarily pre-registers a car will not receive bonus on that vehicle unless the onward sale is after three months of the date of first registration.

Sue Robinson, director of the NFDA said: "Frankly the whole thing is a mess. The confusion over the last few weeks only serves to support the view that this particular piece of legislation needs to be revisited. We hope that the OFT will now agree to a full review of the Supply of New Cars Order."

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