Thursday, October 23, 2008
Carmakers to crackdown on companies who sell-on discounted cars
Vehicle leasing companies and brokers have been warned that their contracts will be terminated immediately if they are caught selling on discounted new cars.
There are industry-wide fears that pseudo contract hire companies and brokers are posing as buying vehicles for fleet customers and then immediately selling the cars on websites for cash.
Ford says it is monitoring websites that advertise heavily-discounted cars in a bid to discover the sources of the vehicles.
The company says that 'in a handful of cases we have terminated dealers' and rival General Motors says it has also 'taken action' against brokers who have breached their agreements.
The practice is illegal, but Ford said it had decided not to take legal action. The manufacturer said it had recovered the cars and ended the contracts.
Nissan and Volkswagen are among other manufacturers that say they would take 'very seriously' any action that resulted in their brands being damaged as a consequence of cars being disposed of before the required retention period.
The British Vehicle Rental and Leasing Association's broker committee says it has established compulsory standards for members.
BVRLA director general John Lewis said: "We will do everything in our power to stop people posing as leasing brokers or contract hire companies in order to obtain discounted cars that they can sell on at a profit."
DATED: 23.10.08
FEED: AW
