Advice required regarding offering a warranty with a car

[anonymous-user]

Hi all,

I have recently bought a couple of classic cars with the intention of re-selling them.

I have tidied then up in various ways and checked they are good to go.

I do not however, wish to be one of these people who sells a cars whilst pretending they are not a trader of any kind to avoid having to give a guarantee/warranty or pay tax...

So can anyone point me in the direction of where smaller dealers/traders might purchase warranties from for classic/sports cars?

Or do they just guarantee the car themselves and just take the hit if the customer brings it back with faults that need repaired?

Are they any circumstances where a dealer can't offer or doesn't have to offer a warranty due to the age or condition of a car? I know when I bought my 993 from a large and well known sports car dealer he said very clearly that as it was nearly 15 years old it was sold as seen and he couldn't offer me a warranty or guarantee like he would offer on his 4 or 5 year old stock.

Thanks

[AngryPartsBloke]

As far as i was aware a dealer is not obliged to offer a warranty on Second hand cars, that the value of second hand goods represents the fact that a new owner might have to pay for reapirs out of their own pocket but this does not allow the trader to get out of his obligations under SOGA.

So, even without a warranty a dealer/trader can't sell a car "Sold as seen".

[anonymous-user]

So providing the car is essentially sound and fit for purpose at the time of sale, a dealer does not need to offer any warranty?

[markmullen]

NinjaPower said:

So providing the car is essentially sound and fit for purpose at the time of sale, a dealer does not need to offer any warranty?

You don't need to offer a warranty as such but be prepared for customers coming back 18 months down the line complaining the cigarette lighter has stopped working and demanding to reject the car

[Snowboy]

AngryPartsBloke said:

As far as i was aware a dealer is not obliged to offer a warranty on Second hand cars, that the value of second hand goods represents the fact that a new owner might have to pay for reapirs out of their own pocket but this does not allow the trader to get out of his obligations under SOGA.

So, even without a warranty a dealer/trader can't sell a car "Sold as seen".

This.

Traders do not have to offer warranties.
But they do have to abide by SOGA.

In the case of an unusual old classic car SOGA requirements will be quite different to a 7 year old Ford.

[anonymous-user]

markmullen said:

NinjaPower said:

So providing the car is essentially sound and fit for purpose at the time of sale, a dealer does not need to offer any warranty?

You don't need to offer a warranty as such but be prepared for customers coming back 18 months down the line complaining the cigarette lighter has stopped working and demanding to reject the car

Mark, what I think what you are trying to say is 'be prepared for the potential hell of dealing with the general public with regards to selling cars'

[TA14]

NinjaPower said:

So providing the car is essentially sound and fit for purpose at the time of sale, a dealer does not need to offer any warranty?

I often think that the warranty is more benefit to the dealer than the punter since it limits the dealer's financial liability.

AIUI SOGA applies to a fifteen year old car in the same way as a two year old car, the difference being what is reasonable to expect; if a gearbox blew up a month after purchase on a two year old car you might reasonably expect the dealer to replace it but on a fifteen year old car the liability will be less clear cut and may depend on the description of the car in the ad, the mileage and what the punter might reasonably expect for the model of car at that price - great news for the lawyers.

[rog007]

All above re 'SOGA' is sound. But why are you operating as a trader? Are you a trader? Is this your main business? Do you make a living from the buying and selling of goods? If you've bought things in the past, polished them up and then decided to sell them because you wanted something else, that doesn't necessarily make you a trader. There is a tipping point of course, but each example would be looked at on its own merits.

Have you declared that you're running a motor trade from your home? Do you have the necessary business and liability insurances?

You could call your council and HMRC to seek their views of your circumstances then you would be on firmer ground. Good luck!

[Spangles]

rog007 said:

All above re 'SOGA' is sound. But why are you operating as a trader? Are you a trader? Is this your main business? Do you make a living from the buying and selling of goods? If you've bought things in the past, polished them up and then decided to sell them because you wanted something else, that doesn't necessarily make you a trader. There is a tipping point of course, but each example would be looked at on its own merits.

Have you declared that you're running a motor trade from your home? Do you have the necessary business and liability insurances?

You could call your council and HMRC to seek their views of your circumstances then you would be on firmer ground. Good luck!

"I have recently bought a couple of classic cars with the intention of re-selling them."

Seems fairly clear cut to me.