Car owners could be eligible for refund on ex-rental cars

Date: 5 JAN 2018posted by Car Rentaledited by WinX

Thousands of car owners in Britain could be eligible for a refund as part of a "used car scandal." According to lawyers, owners may be entitled to compensation payouts if they bought an ex-rental car from dealers without disclosure. The damages could carry between 25 and 100 percent of the vehicle's value for misleading advertisement. Ex-car rental vehicles are sometimes advertised as only having one previous owner and while that fact is true, car rental vehicles are utilized at a much higher degree than a personal vehicle. The additional utilization as a fleet vehicle causes more stress and damage to a vehicle and if re-sold, the pricing should reflect the vehicle's condition. The recent ruling by the Advertising Standards Authority allows owners to have a "viable case" against used-approved dealers. Which means if the dealership failed to notify the buyer that the vehicle was once used as a car rental, the buyer now has an opportunity to claim damages. Previously, dealers only had to disclose the information if the vehicle had been a rental only if they were asked. The controversy was sparked by a reader who had complained to leading car magazine Auto Express over two Alfa Romeo advertisements. They were advertised as only having one previous owner but was later discovered they were both ex-rental vehicles. This sparked the ASA to take on the case. The ASA ruled; "If a dealer knew that a vehicle was ex-fleet because it had previously been used for business purposes, then that was material information likely to influence a customer's transactional decision." The ruling has quickly prompted Fiat Chrysler, Alfa Romeo's parent company, to adjust their online system to notify proper history, while the whole industry is following their lead. "We are telling advertisers that they must include information that they do not currently always include: specifically, if a car is ex-fleet or ex-hire or similar," from an ASA spokesperson. And while it is difficult to put a number on how many car owners have been affected by this, the compensation will be dealt on a case-by-case basis.

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