06/03/2004
It's a sinking feeling. You've driven off the forecourt, excited about your new (or new-to-you) vehicle, only for it to develop a significant fault within weeks, or perhaps even days. If you purchased your car using a finance agreement, such as Personal Contract Purchase (PCP), Hire Purchase (HP), or a lease, you might assume your rights are limited. However, this couldn't be further from the truth. You possess the same fundamental consumer rights as someone who paid outright for their vehicle. The key, as with many things, lies in understanding these rights and knowing how to exercise them, especially when a finance agreement is involved. While getting your money back can sometimes feel more complex, it is by no means impossible. Let's delve into what the law says and what steps you can take.
The Consumer Rights Act 2015: Your Shield
The cornerstone of your protection in the UK is the Consumer Rights Act 2015. This comprehensive piece of legislation supersedes the older Sale of Goods Act 1979 and provides a robust framework for consumer protection. Crucially, it states that any product you buy must be of 'satisfactory quality', 'fit for purpose', and 'as described'. This applies unequivocally to vehicles purchased on finance, whether they are brand new or pre-owned. It's important to note that these rights do not typically extend to private sales, vehicles bought at auction, or those acquired for business use. However, for most consumer purchases, this Act is your primary recourse.
When Can You Reject a Faulty Car?
The Act provides specific timelines and conditions under which you can reject a faulty vehicle and seek a refund:
The First 30 Days: A Clear Right to Reject
If a significant problem with your vehicle surfaces within the first 30 days of ownership, you have a statutory right to reject the car. The law presumes that if a fault appears this early, it was present at the point of sale. This means you are entitled to a full refund of all monies paid. You are not obligated to accept a repair or a replacement vehicle; however, if you prefer one of these options, you can opt for them. This initial period offers the strongest protection, allowing you to walk away from a vehicle that is clearly not up to scratch.
Between 30 Days and Six Months: The Dealer's Opportunity to Rectify
Should a fault emerge after the initial 30-day period but still within the first six months of ownership, the situation shifts slightly. During this phase, the dealer is granted the opportunity to attempt to repair the vehicle. Many consumers find this acceptable, as a successful repair can resolve the issue, and you can continue to enjoy your car. However, if the dealer is unable to fix the problem after a reasonable number of attempts, you retain the right to reject the car and claim a refund. When a refund is issued after this period, there will likely be a consideration for the 'use' you have had from the vehicle. This means the refund amount may be reduced to account for the time and mileage you have already enjoyed with the car.
After Six Months: Proving Your Case Becomes Key
Rejecting a car and seeking a refund after six months is still possible, but it generally becomes more challenging. The onus is on you to prove that the fault you are experiencing was present at the time of purchase. The longer you have owned the car, the more difficult this becomes, as 'natural wear and tear' can be cited by the seller. Therefore, it is crucial to gather strong evidence to support your claim if you wish to successfully reject a vehicle after this six-month mark. Acting promptly once a fault is identified is always advisable.
What Constitutes a 'Faulty' Car?
It's important to understand that not every minor issue with a car will give you the right to reject it. Your rights under the Consumer Rights Act 2015 are designed to address significant problems. For example, finding the seats uncomfortable or a minor bulb blowing are unlikely to be grounds for rejection; these might be covered under a warranty. However, if your car's engine repeatedly cuts out, or there are fundamental issues that make it unsafe or unusable, then you are likely within your rights to reject it. In essence, the fault must be serious, rendering the car not of satisfactory quality, not fit for its intended purpose, or not as described in the contract.
The Six-Year Window: Don't Delay!
While your rights under the Consumer Rights Act 2015 technically last for up to six years from the date of purchase, it is essential not to delay in addressing faults. The longer you wait, the harder it will be to prove that the fault existed at the time of sale, and any issues could be more easily attributed to normal usage and wear. Prompt action is your best ally when dealing with a faulty car.
Taking Action: Your Step-by-Step Guide
So, you've identified a significant fault with your car purchased on finance. What are the practical steps you should take?
1. Contact Your Finance Company First
Your primary point of contact should be the finance company with whom you have your agreement. If you do not have a copy of your Consumer Credit Act (CCA) agreement readily available, you can request it. Clearly explain the problems you are experiencing with the vehicle and state your intention to reject it or request a repair. It is highly recommended to put your complaint and request in writing, whether via email or a formal letter. This creates a clear record of your communication and allows you to detail the issues comprehensively, referencing your finance agreement.
2. The Assessment Process
Finance companies have a duty to investigate your complaint. They will typically arrange for the vehicle to be inspected by an engineer to verify your claims and assess the fault. They are unlikely to simply accept your word without an independent assessment. Once this assessment is complete, the finance company should provide you with a written response detailing their findings and proposed course of action. In many cases, if a significant fault is confirmed, you will be able to reach an agreement with the finance company regarding a repair, replacement, or refund, often in conjunction with the dealership.
3. Escalating to the Financial Ombudsman Service
If, for any reason, the finance company (and potentially the dealership) is unwilling to resolve the issue by repairing, replacing, or refunding your vehicle, you have an additional avenue for recourse. You can escalate your case to the Financial Ombudsman Service (FOS). The FOS is an independent and impartial body that specialises in resolving disputes between consumers and financial services firms. They will thoroughly examine both sides of the argument and make a fair decision, which could result in you receiving your money back.
4. Building Your Case for the FOS
When submitting your case to the FOS, it is vital to provide them with all relevant documentation and evidence to support your claim. This should include copies of your finance agreement, detailed records of the problems with your car, any communication you've had with the finance company or dealership, and the outcome of any independent inspections. Furthermore, you may be able to claim compensation for additional expenses incurred due to the faulty car. For instance, if you've had to rely on public transport or taxis to get to work because your car was undrivable, you can seek reimbursement for these costs.
Key Considerations and a Comparative Overview
Understanding your rights is paramount. Here's a quick comparison of what happens at different stages:
| Timeframe | Your Rights | Dealer/Finance Company Action | Potential Outcome |
|---|---|---|---|
| First 30 Days | Right to reject | Must accept rejection and provide refund | Full refund |
| 30 Days - 6 Months | Right to reject if repair fails | One opportunity to repair | Refund (potentially reduced for use) or replacement |
| 6 Months - 6 Years | Right to reject, but must prove fault existed at purchase | May offer repair, but refund is harder to secure | Repair is more likely; refund requires strong evidence |
Frequently Asked Questions
Q1: Can I reject a car if I don't like the colour?
No, the Consumer Rights Act 2015 applies to faults related to quality, fitness for purpose, and description. Personal preference unrelated to the car's condition or agreed specifications is not grounds for rejection.
Q2: What if the fault is minor, like a squeaky brake?
Minor faults that can be easily rectified, especially under warranty, are unlikely to be considered a breach of the Consumer Rights Act 2015. The fault must be significant and affect the car's satisfactory quality or fitness for purpose.
Q3: Do I have to use the dealer's recommended repairer?
If the dealer offers a repair within the first six months, they will typically want to carry it out. If you are rejecting the car, the finance company will usually arrange an assessment. Always keep clear records of all repairs and assessments.
Q4: What if I bought the car privately?
Your rights are significantly more limited when buying privately. The Consumer Rights Act 2015 does not apply. You would need to rely on the seller not misrepresenting the car and proving they acted fraudulently.
Q5: How long does the Financial Ombudsman Service take?
The timeframe can vary depending on the complexity of the case, but the FOS aims to resolve disputes efficiently. It's advisable to check their website for current estimated timescales.
Conclusion: Empower Yourself with Knowledge
Purchasing a car on finance should not leave you vulnerable if the vehicle proves to be faulty. By understanding your rights under the Consumer Rights Act 2015 and knowing the correct procedures to follow, you can effectively address issues with your vehicle. Remember to document everything, act promptly, and don't hesitate to seek assistance from the Financial Ombudsman Service if your initial attempts to resolve the problem are unsuccessful. Your consumer rights are a powerful tool to ensure you receive value for money and a car that meets the expected standards.
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