Retail Motor Law

The OFT is currently undertaking a market study into the second-hand car market. The study has been prompted by concerns at the large numbers of consumer complaints about the sector. During 2008 sales of £35 billion from approximately 7.5 million cars were made but the sales by independent second-hand car dealerships topped the list of complaints to Consumer Direct. The Study will not include the sale of new cars.

The purpose of the short study is to understand exactly what causes such a high level of consumer complaints and to consider whether existing consumer protection legislation is sufficient and effective in this market.

The OFT intends to complete the study before the end of 2009 and will publish updates on this webpage as the study progresses.

The possible outcomes of the study could include:

• working with our trading standards partners to improve consumer protection in this area

• giving the market a clean bill of health

• publishing information to help consumers

• encouraging an industry code of practice

• making recommendations to the Government or to sector regulators, and 

• investigation and enforcement action against businesses suspected of breaching consumer or competition law.

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