Sell vehicles: rules for dealers

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.

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.

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.

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.

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.