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EU crackdown on used car dealers

Used car dealers should prepare for a clampdown on "unfair sales practice" as new EU consumer protection laws come into place on Monday.

Introduced by the Department for Business, Enterprise and Regulatory Reform, will affect all European member state business but second-hand motor traders were singled out as one of the main targets.

The new rules will outright ban 31 specific practices which are all outlined in the report which can be downloaded by clicking here.

The BERR has said it will put a stop to any "aggressive selling techniques". Any company which doesn't follow the new rules will be subject to "lengthy investigations from local trading standards".

Websites with advice on the new BERR rules have been set up for England, Scotland, Wales and Northern Ireland.

In terms of the used car market, Experian predicts that the new directive is likely to put even more pressure on dealers to ensure precautions, such as vehicle provenance checks, are undertaken.

Kirk Fletcher, managing director of Experian’s Automotive division, said: "The scope of the new directive is still unclear and open to interpretation, so the full impact on the automotive industry is yet to unfold.

"However, we strongly recommend that dealers need to make sure that customers are provided, in a clear and transparent fashion, with all the information about a vehicle’s status.

“This is especially vital at a time when there is increased media attention on protecting consumers from rogue dealers.”

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