Classic Cars

Buyer Beware!

Did you know English Courts have established a rule of law that a buyer cannot get a refund from a seller, if what is sold is unfit for its ordinary purpose?

There are very few exceptions to this rule which occur only where there has been fraud commited, false statements made or dishonesty -  all of which will require a detailed examination of the case facts in court.

So if you're a buyer, you need to take great caution.

Private Sale

With private sales, unless otherwise agreed by the parties, a buyer cannot get a refund from a seller, if what is sold is unfit for its ordinary purpose.

However, if you've purchased from an internet or magazine advertisement and you feel you have bought something not as described, you may be able to claim for “misrepresentation” and get some money back.

As we don't have a register of car owners in England and Wales, just a register of “keepers”, it is important to establish the person selling the Classic Car, is actually the owner. It is also important to check that they are not bankrupt and that the car is not owned by a finance house or bank, otherwise they will generally be unable to give ownership rights to the buyer. 

Dealer Sale

Unlike private sales Classic Car sales by dealers are subject to consumer protection legislation, which can reduce the buyer’s risk.

In essence this provides a comprehensive code of conduct to avoid unfair business practices, which is enforced by the Trading Standards Service. This includes not:

• giving false information to or deceiving customers
• giving insufficient information, or hiding important information
• acting aggressively through sales techniques
• failing to act in accordance with the reasonable expectations/honest market practice good faith

In addition this legislation requires that certain contract terms apply, such as:

• the dealer has the right to sell the classic car
• that it is accurately described,
• is of satisfactory quality i.e. free from minor defects, safe and durable
• and fit for purpose and if identified the buyers specific purpose

Quite often the dealer will have their own sale contract and terms of business, so if any reference is made to them, you must first obtain a copy and read and understand them before completing a purchase.

If the dealer doesn't own the classic car and is selling it on behalf of the owner, the agreement may provide for the purchase monies to be paid to the owner and the dealer.

What happens if you are not happy with your purchase? Learn more about Litigation and Mediation.

Litigation

Litigation is the traditional method for dispute resolution.

The process is pretty inflexible in terms of resolving disputes because the judge is constrained in interpreting the facts and applying the relevant law.

In addition the judge’s approach, because they are human, can be inconsistent and difficult to predict. The process involves payment of court fees and if the parties are represented, solicitors fees, which depending on the number of issues of fact and issues of law can be considerable.

Litigation is an uncertain process and can be very costly. 

Mediation

Mediation is an alternative method of dispute resolution. 

The disputing parties jointly appoint an independent person, called a mediator to try and help them settle the argument. 

The mediator’s job is to:

• review the papers and respective positions of both parties
• to assist both parties in exploring all the issues that they have. This will be done in individual one on one meetings.
• to assist them in reaching a resolution of the dispute.

The parties meet up with the mediator on an agreed day at a neutral location, often at the mediator’s office.

• the duration of the mediation is usually no more than one day, with considerable cost savings
• the process is not constrained by the sole application of the law
• the mediator is often a lawyer, who is familiar with the relevant law , and so can acid test parties legal positions, but the mediator does not advise the parties on the law, nor determine the legal position 
• the parties can represent themselves without legal representation
• the whole process is confidential and without prejudice, which in essence means it cannot be referred to in any subsequent court proceedings 
• the whole process is not binding on the parties unless they reach an agreement, which is their agreement, rather than one that is imposed upon them.

Whichever route you decide, as litigation lawyers and trained Mediators, BPE can support you. 

Philip Radford

As a solicitor, Philip is responsible for Commercial Litigation and trained in accountancy as well as law.

He has particular expertise in commercial disputes (including shareholder and partnership claims), intellectual property and professional negligence. He is also a qualified mediator working with national mediation group, Talk Mediation.

Philip is passionate about classic cars and has owned, the iconic Golf GTI, the classic Mk1 BMW Series 3 Bauer convertible, the modern classic Mercedes E320 Cabrio, the future classic 2004 Maserati Quatroporte and a 35 year old English built Triumph Stag.

To get in touch with Philip, please call 01242 248247 or email philip.radford@bpe.co.uk

Buying a classic car can be a great investment, but there are some things you should consider before completing your purchase.

1. Get a good understanding of the characteristics of the particular vehicle that you wish to purchase, especially its quirks and challenges. Much of this information is now freely available on the internet, or from the secretary of classic car owners clubs.
2. Having chosen the classic car you wish to purchase, investigate the prices that are being paid, or have been paid in the last few years, for that type of vehicle. Auction houses keep tables of sale prices and classic car magazines have comprehensive price tables which will give plenty of useful information.
3. Identify a specialist mechanical engineer who can advise you about your proposed purchase and who can carry out an insepction before the purchase. Once again, appropriate engineers can be identified from classic car magazines, or classic car owners clubs.
4. Last but not least consult with a specialist lawyer. They can advise you on terms of purchase that you should impose if buying privately, or if buying at auction, what the terms actually mean! A speicalist lawyer may also have a list of special motor engineers, who they have experience with, who can assist in the investigation and in obtaining a written valuation that you are likely to need following the purchase for insurance purposes.