Strictly embargoed to Thursday 29 January 2009 at 00:01hrs

Car dealers still taking customers for a ride

Car dealers’ reputation for sharp practices could be justified, says Which? – despite new regulations* designed to stamp out misleading sales tactics.

An undercover investigation by the consumer organisation found plenty of examples of poor, misleading or unclear advice. Of the 26 enquiries Which? made, 12 car dealers made dubious or vague claims, and four of these could have broken the new rules.

Some bad advice could be because dealers are ill-informed about manufacturers’ offers. But Which? suspected some dealers of using “bait and switch” tactics - advertising a car, despite knowing there’s no stock, with the aim of selling an alternative – and “pressure selling”, such as implying a false deadline for a discount offer or saying stocks are low.

One Peugeot dealer said on the phone he had a model that was advertised on its website. Just an hour and a half later in the showroom, the researcher was told the dealer didn’t have that model and was shown a different car. This seems like an example of “bait and switch” - but is difficult to prove.

A Jeep dealer strongly suggested a special offer would finish at the end of that month (October 2008), despite the Jeep website saying it applied to any cars registered before December 31. The salesman claimed “there’s only about 10 left in the country”, although Which? found no apparent shortage from established online brokers.

Which? motoring expert David Evans** also visited some showrooms. He enquired after a Vauxhall Astra advertised on the dealer’s website, and was asked to take a seat while a salesman “checked stocks”. Without even disappearing from view (the dealer walked into a small office, then came straight back out), he said he was sorry but that particular model was gone. He then went into full sales mode, offering a used Astra, with several thousand miles on the clock, for the same price.

David did have one positive experience out of four visits to car salesmen (a Vauxhall Astra dealer who actually had the car in stock that he claimed), but his overall impression was of “swimming with sharks”.

Which? is concerned that the new consumer protection rules can’t be enforced effectively*** as it’s so difficult to determine what is an unfair sales tactic and what is misguided advice.

Richard Headland, Editor, Which? Car, says:

“The ghost of Arthur Daley’s alive and kicking, unfortunately. Dealers have had ample time to get used to the new rules, but too many still let car buyers down.

“Our investigation was just a snapshot, but we still found several examples of dubious sales advice. If dealers want to win the confidence of consumers, especially in these tough times, they need to play by the rules.”

- Ends –

Notes to editors

In October and November 2008, Which? mystery shoppers phoned and then visited 26 franchised dealers in four regions across England, following up on seven specific, advertised manufacturer offers for new cars.

*31 practices have been outlawed completely under the Consumer Protection (from Unfair Trading) Regulations. It is now illegal, for example, for a retailer to invite a prospective buyer to purchase at a specified price, without telling the buyer if it may not be able to supply the goods advertised. Making false claims has always been frowned upon, but now it is against the law, as is omitting vital information the consumer needs to make a purchasing decision. There are also legally binding guidelines on other sales techniques. These aren’t banned outright, but may be judged to be illegal if they mislead, are unduly aggressive, or in some other way lead to a consumer making a decision different to the one they would have made had they been treated fairly.

**David Evans is familiar with the workings of car dealerships. Before joining Which?, he spent five years working for franchised dealers and later spent 13 years working for car manufacturers, including direct liaison with dealers.

***Car buyers who believe a dealer has misled them should contact Consumer Direct on 0845 404 0506.

Which? is the leading independent consumer champion in the UK. We provide impartial, expert information on products and services in our magazines, books and online to help consumers make more informed choices, and we campaign on issues that matter to all consumers, from food to finances, health to estate agents. For more information on how we can help you, visit http://www.which.co.uk

The above article is in the February edition of Which?. Which? Car, now a quarterly magazine, packed full of advice on getting good car deals, will be on sale at Sainsbury’s from Friday 30 January for £3.99. Contact Martin Chapman for a copy. 

Contact Martin Chapman 020 7770 7373 / martin.chapman@which.co.uk