Retail & Consumer Goods UK-wide

Sell vehicles: rules for dealers

Selling cars, vans or motorcycles brings duties beyond ordinary consumer law: you must not mislead buyers about a vehicle's history, you must display fuel and CO2 information on new cars, and if you arrange finance or sell add-on insurance you must be authorised by the FCA. Dealers who import or first-register vehicles also have type-approval duties.

Updated 9 Jun 2026

Guide summary

You must not mislead buyers about a vehicle's history, mileage, or accident record. On new cars, display a fuel economy and CO2 label. If you arrange finance or sell insurance like GAP, get authorisation from the Financial Conduct Authority. If you import or first-register vehicles, ensure they are type-approved. Breaking these rules can lead to fines or imprisonment.

Do not mislead buyers about mileage, write-off status, previous keepers, or accident history
Give buyers a 30-day right to reject a faulty vehicle for a full refund
Display a fuel economy and CO2 label on every new passenger car
Show fuel economy and CO2 figures in your adverts and promotional material
Get FCA authorisation if you arrange hire purchase, PCP, or conditional sale finance
Get FCA authorisation if you sell add-on insurance like GAP
If you are a secondary credit broker, cap your fee at £250
Ensure vehicles you import or first-register are type-approved
Trading Standards enforces these rules and can prosecute you

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Selling vehicles is more regulated than ordinary retail. On top of the general fair-trading duties every motor business has, dealers must be accurate about a vehicle's history, give buyers the right information, stay on the right side of the rules when they arrange finance, and — if they import or first-register vehicles — make sure each one is type-approved. The rules below apply to cars, vans and motorcycles alike unless stated.

Do not mislead buyers about a vehicle

Omitting or misrepresenting material information — mileage ("clocking"), a previous write-off or Cat S/N status, outstanding finance, the number of keepers or accident history — is an unfair commercial practice. A faulty vehicle gives the buyer the short-term right to reject (30 days) under the Consumer Rights Act. The same applies to used motorcycles.

Used-vehicle material-information disclosure

Consumer-protection duties for dealers selling used cars (SIC 45) — the prohibition on misleading practices and omissions (now under Part 4 of the Digital Markets, Competition and Consumers Act 2024) about a vehicle's history and the short-term right to reject under the Consumer Rights Act 2015.

If you sell used cars (SIC 45), you must not mislead buyers about the vehicle you are selling. Under the unfair commercial practices regime in Part 4 of the Digital Markets, Competition and Consumers Act 2024 (which replaced the Consumer Protection from Unfair Trading Regulations 2008 from 6 April 2025), giving false information or omitting material information — about the recorded mileage (clocking), write-off or insurance category (Cat S/N) status, outstanding finance, the number of previous keepers, or accident or repair history — is an unfair commercial practice and an offence. Material facts a reasonable buyer needs to make an informed decision must be disclosed, not just withheld. Under the Consumer Rights Act 2015 a used vehicle must be of satisfactory quality, fit for purpose and as described. The consumer has a 30-day short-term right to reject a faulty vehicle for a full refund. Enforcement is by local Trading Standards.

Statutory source: Digital Markets, Competition and Consumers Act 2024 (c. 13), Part 4 (replacing the Consumer Protection from Unfair Trading Regulations 2008 from 6 April 2025); Consumer Rights Act 2015 (c. 15)
Regulator: Local Trading Standards
Core duties: Do not give false or misleading information or omit material information about mileage, write-off/Cat S/N status, outstanding finance, previous keepers or accident history. Supply a vehicle of satisfactory quality, fit for purpose and as described. Honour the 30-day short-term right to reject a faulty vehicle
Territorial scope: United Kingdom (England, Scotland, Wales and Northern Ireland)
Consequence of breach: Misleading actions or omissions are criminal offences carrying fines and, on indictment, imprisonment. Trading Standards can prosecute, and the consumer may reject the vehicle or claim a refund or compensation

Display fuel consumption and CO2 information on new cars

A fuel economy and CO2 emissions label must be shown on or near each new passenger car you offer for sale, and the figures must appear in your promotional material. Trading Standards enforces this.

New car fuel consumption and CO2 emissions information

Information duties for dealers offering new passenger cars for sale (SIC 45) — the requirement to display a fuel economy and CO2 emissions label on or near each new car and to show the figures in promotional literature, under the Passenger Car (Fuel Consumption and CO2 Emissions Information) Regulations 2001.

If you sell new passenger cars (SIC 45), you must give buyers standard fuel economy and emissions information under the Passenger Car (Fuel Consumption and CO2 Emissions Information) Regulations 2001 (SI 2001/3523). A fuel economy label showing the car's official fuel consumption and CO2 emissions figures must be displayed on or near each new passenger car offered for sale at the point of sale. The same official figures must be shown in promotional literature and advertising for new cars. A poster or display listing the figures for all models on offer must also be available. (This instrument is cited in prose only — it is not yet held in the local legislation registry. Flagged for ingest in the residual ticket.)

Statutory source: Passenger Car (Fuel Consumption and CO2 Emissions Information) Regulations 2001 (SI 2001/3523)
Regulator: Local Trading Standards
Core duties: Display a fuel economy and CO2 emissions label on or near each new passenger car offered for sale. Make a poster or display of the figures for all models available at the point of sale. Show the official fuel consumption and CO2 figures in promotional literature and advertising
Territorial scope: United Kingdom (England, Scotland, Wales and Northern Ireland)
Consequence of breach: Failing to display the required information is an offence. Trading Standards can prosecute, with fines on conviction

Get FCA authorisation if you arrange finance

If you arrange hire purchase, PCP, conditional sale or other credit — or sell add-on insurance such as GAP — you are carrying on a regulated activity and must be authorised by the Financial Conduct Authority or act as an appointed representative. Following the 2024-25 motor-finance commission rulings, the FCA's disclosure expectations and the Consumer Duty bear directly on how commission is arranged and explained. The same applies to motorcycle finance.

Credit broking requirements (CONC 2)

FCA requirements for credit brokers including authorisation, disclosure, fee caps, and commission transparency under CONC 2.

A credit broker is anyone who, in the course of business, introduces consumers to credit providers or helps consumers obtain credit. This includes retailers who offer store cards or point-of-sale finance, motor dealers arranging hire purchase, and specialist brokers. Credit broking is a regulated activity under Article 36A of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, and firms must hold FCA authorisation to carry it on.

FCA permission types: Full permission required for primary credit broking; limited permission sufficient for secondary credit broking and consumer hire introductions
Primary credit broking: Introducing customers to specific lenders or credit products as a main business activity
Secondary credit broking: Introducing customers to credit incidentally to another business (e.g. retailer offering finance at point of sale)
Initial disclosure document: Must be provided to the customer before any credit broking services are performed
Fee transparency: All fees and charges must be disclosed to the customer upfront before services are provided
Fee cap (secondary credit brokers): Maximum fee of GBP 250 for secondary credit brokers under limited permission
Commission disclosure: Must inform the customer that commission may be received from the lender, and disclose the amount on request
Record keeping: Must maintain adequate records of all introductions made, including customer details and lender referrals
RAO articles: Articles 36A to 36H of the Regulated Activities Order 2001 define credit broking activities

FCA consumer credit guidance

Type approval if you import or first-register vehicles

If you import or first-register new vehicles for the GB market, each one must hold GB type approval (or Individual Vehicle Approval) and a Certificate of Conformity before it can be registered, and you must be able to produce that certificate. The Vehicle Certification Agency is the GB approval authority. The same duty applies to motorcycles.

Vehicle type approval / Certificate of Conformity (dealers and importers)

Approval duties for dealers and importers placing new vehicles on the UK market (SIC 45) — the requirement to hold GB type approval or Individual Vehicle Approval and a Certificate of Conformity before first registration, under the Road Vehicles (Approval) Regulations 2020, with VCA responsible for GB type approval and DVSA for Individual Vehicle Approval.

If you import or first-register new vehicles for the UK market as a dealer or importer (SIC 45), each vehicle must hold valid GB type approval — or, for one-off or low-volume vehicles, Individual Vehicle Approval (IVA) — and be covered by a Certificate of Conformity (CoC) before it can be first registered. Under the Road Vehicles (Approval) Regulations 2020, a vehicle supplied to the GB market must be approved to the applicable standard. The supplier must be able to produce the Certificate of Conformity or approval certificate. The Vehicle Certification Agency (VCA) is responsible for GB type approval; the Driver and Vehicle Standards Agency (DVSA) administers IVA. This duty applies to you as the dealer or importer placing the vehicle on the market, not only to the original manufacturer.

Statutory source: Road Vehicles (Approval) Regulations 2020 (SI 2020/818)
Regulator: Vehicle Certification Agency (VCA) for GB type approval; Driver and Vehicle Standards Agency (DVSA) for IVA
Core duties: Ensure each new vehicle holds GB type approval or Individual Vehicle Approval before first registration. Obtain and retain the Certificate of Conformity or approval certificate. Supply it to the buyer and produce it for registration
Territorial scope: United Kingdom (Great Britain type approval; Northern Ireland applies the EU approval rules under the Windsor Framework)
Consequence of breach: Supplying or registering an unapproved vehicle is an offence. The vehicle cannot be registered, and VCA/DVSA enforcement and prosecution may follow

Type approval is mainly the original manufacturer's responsibility. If you manufacture or substantially modify vehicles, see type-approve motor vehicles and trailers for the GB market.

Selling lorries, buses, coaches and heavy vehicles

Vehicles you supply must meet construction-and-use and type-approval standards. Note that operating heavy goods vehicles or PSVs is the buyer's responsibility — they will need a DVSA / Traffic Commissioner operator's licence — which is a downstream duty on the purchaser, not on you as the seller.

Next steps

Make sure the cross-cutting duties for your business are in place — see Run a compliant motor trade business — then confirm everything with the motor trade compliance checklist.

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