The Office of Fair Trading (OFT) has taken enforcement action against used car supermarket group Carcraft.
Carcraft, which operates 11 sites in England and Wales and fully cooperated with the OFT investigation, was cited by the OFT for its business practices when selling cars, finance and after-sale guarantees.
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The OFT believes Carcraft did not clearly explain terms and conditions on financial products, carry out comprehensive pre-sale car checks as advertised or meet legal obligations to repair or replace vehicles.
It also asserts that the company misled customers over aftersales guarantees and even allowed some customers to drive away vehicles without sufficient road tax.
Though Carcraft believed it had been operating within the law it has told the OFT that it will make changes in line with their findings.
The OFT last year published a market survey that admonished the used car industry and will soon launch a rights awareness campaign for second-hand vehicle buyers.
An F&I professional who did not wish to be named commented to Motor Finance on the situation: This OFT action has big implications with regard to how dealers sell finance, and should make a lot of people out there sit up and take notice. It sets a very serious precedent.
A full analysis of the findings and the implications for dealer F&I will be printed in Decembers issue of Motor Finance.
richard.brown@vrlfinancialnews.com
