The OFT has taken action against a used car buying company over concerns that its online valuations were misleading.
The regulator found that nearly 96 per cent of customers who sold their car to webuyanycar.com received hundreds of pounds less for their vehicle than their original online quote.The site’s users thought they would be paid the online valuation if the company's onsite inspection of the car’s condition matched the details entered online by the prospective seller. But some customers found that other factors, such as 'market conditions', reduced the final price after their vehicles were inspected.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.”The OFT also found that vehicle inspectors were given buying targets and were sometimes told to reduce the valuation offered by up to 25 per cent upon reappraisal.Mr Elithorn said: “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.Furthermore, sellers were given the impression that the online quote was valid for seven days, so were encouraged to make an appointment quickly. “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,” he continued.The OFT also expressed concern that prospective customers would accept reduced valuations, even if they were unhappy with it, once at the company’s premises. The reasons for this included expenses already incurred and personal circumstances meaning a quick sale was imperative.The used car site has been ordered to make clear to the consumer that the website valuation is not set in stone and to stop setting targets for vehicle inspectors that would make reduced car valuations be beneficial to the valuer.Manchester debt firm is liquidated owing creditors over £2.2m
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