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Ireland could be facing an influx of UK business car imports, claims vehicle history and data company Cartell.ie.
Following a recent ruling in the UK, Cartell.ie suggests the interpretation of consumer protection laws over the water might lead to the number of company imports to Ireland seeing a sudden and significant increase.
The claim comes after the Advertising Standards Authority (ASA) in the UK ruled that the fact a used vehicle was an ex-fleet or rental car is 'material information' and should be disclosed to the consumer. In the past 12 months, one million UK car buyers unwittingly bought ex-rental or company cars.
This particular issue came to light after publication of a guidance note issued by the ASA, in the wake of its criticism of Fiat Chrysler Automobiles UK and Glyn Hopkin in October 2017 for advertising two ex-fleet cars for sale without disclosing that they were previously used for business purposes. The ASA in its ruling on that matter stated: "We considered that if a dealer was aware that a vehicle was ex-fleet because it had previously been used for business purposes, then that was material information likely to influence a consumer's decision to purchase it. Furthermore, if a dealer knew that such an ex-fleet vehicle was used by multiple users, then that, too, was material information for consumers to make an informed decision."
Following this ASA decision, Gateshead Council Trading Standards ruled against Peugeot Citroen Retail UK in January this year under the Consumer Protection from Unfair Trading Regulations 2008. A customer bought a car in January 2017 for around £10,000 (€11,245, at the time of writing) and was told at the time of sale that the car had had one previous owner, when in fact the previous owner was an international car hire firm. The company pleaded guilty to the offence and was fined £5,000 (€5,623) plus costs of £500 (€563). The court also ordered the company to pay the customer £1,000 (€1,125) in compensation.
With all that framing the current state of UK second-hand car sales, Cartell.ie is concerned that the fallout from the Hopkin ruling and the Peugeot Citroen Retail UK case may result in an influx of ex-fleet UK vehicles into Ireland.
Jeff Aherne, director of Cartell.ie, said: "Our biggest fear is that if the UK motor industry fails to prevent this situation escalating, it will be the courts and other regulatory bodies setting the value of second-hand cars rather than the marketplace. The levels of compensation for loss in value potentially awarded in the wake of the Peugeot Citroen Retail UK case could be on a scale which would make it financially attractive to move ex-fleet vehicles out of a developing two-tier UK market and into Ireland - where the benefits of ex-fleet vehicles are better understood.
"While the cross-border flow of used vehicles ebbs and flows with exchange rates and other factors, the risk of ex-fleet vehicles flooding into Ireland could have an impact on used values, which are tracked monthly by Cartell.ie in the 'Trade Retail Guide'. A UK Trading Standards decision causing a significant increase in company imports is not something we want to see as the impact on the Irish car market - and particularly on used values - would be large."
Anything else?
Cartell.ie says one of the difficulties for the UK dealer network is obtaining information that proves that the vehicle in question was an ex-fleet vehicle. While this information is readily available in the Irish market (a Cartell.ie Car History Check will tell if an Irish vehicle was a company vehicle or a taxi/hackney and its tax class), it isn't obtainable in the same way in the UK.
But the impact on values might be mitigated by different buyer sentiment here in Ireland. Here, fleet cars are seen as a good used car purchase, rather than something to be avoided. These vehicles are typically well-maintained to manufacturers' schedules and are normally in good condition. Cartell.ie therefore says it would not agree with the original ASA ruling in the Hopkin case, when the UK body dismissed the argument that ex-business single use vehicles might be at least as well maintained as ex-private vehicles.