Who Regulates UK Car Dealers?

Buying a car is a big deal; it’s exciting but can also feel a bit overwhelming, especially when you’re faced with different dealerships, offers, and all those shiny cars vying for your attention. But here’s the thing, knowing that car dealers are held to certain standards helps make the whole experience a little less daunting.

If you’ve been wondering, "Who actually regulates car dealers in the UK, and what does that mean for me?", you’re in the right place. This guide explains how dealerships operate, what rules they follow, and who’s there to protect you as a buyer.

How Are UK Car Dealers Regulated?

When you step into a car dealership—or visit their virtual showroom—you’re interacting with a business that operates within a framework of laws, trade associations, and codes of practice. While not all regulation is mandatory, a combination of consumer laws and industry standards keeps dealers in check and ensures fair treatment for customers.

Consumer Rights Act

The Consumer Rights Act 2015 is the backbone of customer protection in the UK. It sets out your rights when buying a car, whether it’s new or used, from a dealership. Under this law, cars sold by dealers must be:

• Fit for purpose—it should do what the dealer said it would.
• Of satisfactory quality—free of defects unless explicitly stated otherwise.
• As described—any details listed in adverts or shared by the dealer must be accurate.

If something isn’t quite right, you’re entitled to a refund, repair, or replacement, depending on the issue.

Trade Associations

While not a requirement, many UK car dealerships are members of industry trade associations. These organisations set specific standards and codes of practice for their members. Dealers who join promise to follow these guidelines, which often go above and beyond basic legal obligations.

Here are the key players you'll come across in the UK car industry:

• Motor Ombudsman (formerly Motor Codes)

Oversees three Codes of Practice, covering:

• New car sales
• Warranty products
• Service and repairs

With 99% of UK new car sales falling under its remit, this association ensures transparency, and if conflicts arise, they offer dispute resolution services.

• Retail Motor Industry Federation (RMI)

Represents franchised car dealers, garages, and independent used car sellers across the UK. Their members must adhere to a high standard of customer service.

• Motor Cycle Industry Association (MCIA) and Scottish Motor Trade Association (SMTA)

Though smaller in scope, these associations cater to niche segments like motorbikes or Scotland’s automotive market, maintaining vital industry standards.

How Can You Check if a Dealership Is Regulated?

Many respected dealerships proudly display the logos of their associated trade bodies on their premises, paperwork, or websites. If you’re unsure, don’t hesitate to ask directly whether they belong to an organisation or contact the association to confirm. Most trade bodies also offer online tools to help you find verified dealers in your area.

By choosing a dealership on Cazoo that belongs to a reputable trade association, you gain the added reassurance that they’re accountable to a code of conduct and have access to impartial dispute resolution options if needed.

Common Tactics to Watch For

While most dealerships operate fairly, it’s no secret that some might use sneaky tactics to close a deal. Here are a few things to look out for so you can stay one step ahead:

Unrealistically Low Prices

Ever spotted an incredible deal online, only to be told when visiting the dealership that "the car just sold" or "it’s not exactly like in the photos"? This tactic, known as bait-and-switch, is designed to lure you into the dealership, where they’ll upsell higher-priced alternatives.

Pressure to Buy Quickly

Hearing phrases like, "There’s another interested buyer," or "This offer ends today," can trick you into rushing a decision. Leave if you feel pressured—your dream car should never come with buyer’s remorse.

High Part-Exchange Valuations

Offering an over-the-odds trade-in price might sound generous, but watch out—it could simply mask a reduction in discounts on your new car.

Inflated Finance Deals

With financing, the devil is in the detail. Misleading offers might highlight low monthly payments while skipping over significant costs like high interest rates or balloon payments at the end of the agreement. Always read the terms carefully and compare deals elsewhere before committing.