OFT takes action against webuyanycar

THE OFFICE of Fair Trading (OFT) has taken enforcement action against car buying company webuyanycar.com following concerns that its online valuations were misleading.

The OFT’s investigation found that nearly 96% of customers who sold their car to the Rochdale-based company received less for their vehicle than the original online quote – sometimes by several hundred pounds.

The OFT said that consumers were given the impression that they would be paid the online price quoted if an online inspection matched the condition of the vehicle. However, once an appointment was arranged, prices often dropped with “market conditions” being cited as a reason for lower valuations.

It also found that vehicle inspectors were also set targets regarding car purchases, sometimes to reduce valuations by up to 25%.

The OFT said that the company has co-operated with its investigation, and although its directors believed that its practices were legal, they have agreed to certain changes.

These include giving a clear indication that their website valuation is not a price at which the company is offering to buy the car, the scrapping of targets for vehicle inspectors which could encourage them to reduce valuations, not to deduct the refund available to owners from the DVLA for the remaining portion of any road tax and make it clear that a next working day payment service (for which it charged £24.75) is only an optional payment method.

Cavendish Elithorn, Senior Director of the OFT’s Consumer Group, said: “Selling personal possessions through the internet is increasingly popular, especially in these tough economic times.

“But it’s important that the headline figure isn’t chipped away at by the buyer, because it makes it very difficult for consumers to shop around and find the best deal.

“This action makes clear that online businesses offering to purchase cars or other goods must provide clear upfront information on pricing and about how their service operates and company staff should not be incentivised to cut the valuation that has attracted the customer to the business.”

“The growth of new business models on the internet can bring major benefits for consumers, businesses and the UK economy. But for this to work, people need to be able to trust the deals they are offered.”

Webuyanycar.com is owned by brothers Noel and Darren McKee, who also own Carcraft’s parent company, UK Car Group.