Specialist learning and development group RTS is staging training courses to help car dealerships get to grips with the biggest change in consumer rules to affect the motor trade for decades.
The new Consumer Rights Act will give buyers of new and second-hand cars more power to demand full refunds if the vehicle is faulty. 
But according to Chippenham-based RTS, which specialises in developing frontline staff in the automotive sector, the industry is underprepared for the changes that come into force on October 1.
The firm has teamed up with lawyer Mark Reeves, who specialises in the motor industry, to make sure dealerships are aware of the legislation and what they must do to comply with it.
Mark said: “I have been working in motor trade law for 27 years, and I know the industry is simply not ready for this. The new Act means that, when it comes to problems with the product, the ball is firmly in the consumer’s court.”
While the Act is not specifically aimed at the motor industry, one of the biggest impacts will be in this area.
In 2013/14 Citizens Advice Bureaux helped with more than 84,000 problems relating to used cars worth £363m, according to Trading Standards – with most complaints about consumer service.
Under the new Act, anyone buying goods (such as a car) found to be faulty within 30 days of delivery can demand a full refund. Known as the ‘early right to reject’, this replaces earlier rules which said a vendor could merely replace or repair a faulty item or part. Any defect found after 30 days but within six months entitles the customer to a repair or replacement.
Dealers will have only one chance at repair or replacement. If they fail, the customer is, again, entitled to a full or partial refund.
Mark said these changes meant dealerships would have to use due diligence in all sales, paying close attention to presale vehicle checks. If they miss or overlook faults – and the customer then decides they want a refund – they could end up with forecourts full of returned motors.
Mark added: “The Consumer Rights Act is the most important piece of legislation in this area for 40 years, and will prove a huge shock to the franchised dealers. I think it means that motor dealers will have to be much more focused on ensuring that vehicles are free of faults at delivery; greater emphasis on pre-delivery inspections, vehicle health checks, approved used car checks and service schedules.”
RTS managing director Malcolm Miller, pictured above, said dealerships were gradually waking up to the new legislation, and his team were taking more and more calls from principals wanting training in the new rules.
“They started as a trickle but we are getting calls from dealerships every day now,” he said. “It is a big industry and Mark is quite correct when he says that this is a real wake-up call to traders in their selling practices.”
The legislation applies only to sales to consumers – not between private individuals or between businesses – and affects both new and used goods.
Additionally, the new Act comes in on the back of changes in June last year to distance selling where, if the contract was made over the phone or internet, consumers were granted a 14-day cooling off period, during which time they have the right to return a product for any reason or no reason at all.
RTS Group has been providing learning and development services to the automotive industry since 1989 and works across Europe, the Middle East, China and South Africa, including with manufacturers and brands, such as Mercedes-Benz, Mazda and Nissan.
