When is a car dealer doing a 'private sale'? Six month rule applies?

[CAGareBrilliant]

Friend bought a car from a guy who runs a business with a website offering 'Cars for Sale' and his business has a companies house registration showing 'Nature of Business - 45112 - Sale of used cars and light motor vehicles'.

 

He paid for the vehicle by bank transfer into the guy's business bank account and the seller scribbled him a pencil receipt (which my friend also signed), part of which used the phrase "sold for sum private by bank transfer".

 

The car started to go seriously wrong a few months after purchase and my friend phoned him and texted him (the dealer) multiple times asking for help. He was brushed off. Eventually my friend had to have it repaired at his own expense. They were severe engine management faults that caused the vehicle to stall in dangerous situations. He had to sell the vehicle (as he relied on it for work) and took a loss of several thousand on the original purchase price. The repair work cost him an additional £750.

 

Is this a private sale? My hunch is that it was a car dealer sale by a business, in which case presumably the six month rule under the SOGA applies?

 

As he refused to have the car back and my friend was forced to sell it at a loss, does he have a good case to litigate to recover the loss at sale, as well as the repair bill?

 

Many thanks for any helpful pointers!

[sailor sam]

Was the seller's name on the V5C?

[CAGareBrilliant]

Was the seller's name on the V5C?

 

Yes, his own name, not that of the business. However, is this significant, dealer's often don't change the V5?

[ericsbrother]

It was a business sale unless the ownership and insurance were with the dealer on a personal basis for an appreciable length of time. It would be for the dealer to prove that it was a private sale, not you to prove a consumer purchase.

As the dealer is a "professional" motor trader even a private sale of a car with serious faults he would be liable to make good as the sale would undoubtedly be misrepresented. A letter setting out what is desired and a fixed time to respond (say, 14 days)should be sent and if no response a letter before action with the sum claimed should be sent by recoded delivery, again with a time to respond (7days) and then start a civil claim for recovery of the loss (difference in price paid+ repairs and the selling cost).

[sailor sam]

Yes, his own name, not that of the business. However, is this significant, dealer's often don't change the V5?

 

Could be... if the V5 was in the name of the seller rather than his business name, it suggests that it was his own personal car. Unless the sale was completed on his business premises he could argue that it is in fact a private sale. Traders don't normally want more RK's listed on the V5 than necessary. Normally, the previous owner remains on the V5 until the car is sold on. The fact that the V5 has the actual trader named as the RK could convince a court that it was a private sale. HOWEVER, as the seller is a car trader, a court may consider that the seller ought to have the expertise to know about the car he is selling.

[CAGareBrilliant]

It was a business sale unless the ownership and insurance were with the dealer on a personal basis for an appreciable length of time. It would be for the dealer to prove that it was a private sale, not you to prove a consumer purchase.

As the dealer is a "professional" motor trader even a private sale of a car with serious faults he would be liable to make good as the sale would undoubtedly be misrepresented. A letter setting out what is desired and a fixed time to respond (say, 14 days)should be sent and if no response a letter before action with the sum claimed should be sent by recoded delivery, again with a time to respond (7days) and then start a civil claim for recovery of the loss (difference in price paid+ repairs and the selling cost).

 

Thanks for this. We have good reasons to think that, despite the car being registered to him, it was also used for business purposes whilst in his possession.

 

We've sent the initial response-demand in a fixed time letter and I was seeking opinions here (good responses, thank you so much people!) for the specific legal point on the private sale if I do have (as I suspect) to go on to the CCJ stage.