03/07/2022
Purchasing a used car can be an exciting prospect, offering a more affordable route to vehicle ownership. However, it can also be fraught with anxiety, as the prospect of hidden faults or misrepresentation looms large. Fortunately, consumers in the UK are not left entirely to their own devices when a pre-owned vehicle doesn't live up to expectations. The Sale of Goods Act 1979 provides a crucial legal framework, offering a degree of protection and a pathway to recourse should your recent acquisition prove problematic. Understanding your rights under this Act is paramount to ensuring a fair transaction and knowing what steps to take if things go awry.
The Sale of Goods Act 1979 (SGA), while now largely complemented by the Consumer Rights Act 2015 for business-to-consumer transactions, still holds significant relevance, particularly when dealing with private sellers, and its core principles remain foundational for all goods bought and sold. It establishes fundamental implied terms in contracts for the sale of goods, including used vehicles, ensuring that buyers receive what they are reasonably entitled to expect.
The Sale of Goods Act 1979: Your Cornerstone of Protection
The Sale of Goods Act 1979 provides a legal framework for transactions where goods, including vehicles, are bought and sold. It imposes a duty on sellers to ensure that any car they sell meets specific standards. These obligations are critical to ensuring that buyers receive what they have paid for, irrespective of whether the seller is a private individual or a professional dealership.
Key Principles of the SGA 1979
When you purchase a used car, the Sale of Goods Act 1979 stipulates three key conditions that the vehicle must meet. These are fundamental to your consumer rights and form the basis of any potential complaint:
- Satisfactory Quality: Any vehicle purchased must meet the standard that a reasonable person would regard as satisfactory, taking into account factors such as its price, age, mileage, and condition. For a used car, this does not mean it must be perfect or fault-free, but it should be fit for its everyday use unless faults were specifically disclosed at the point of sale. For instance, a ten-year-old car with high mileage might be expected to have some wear and tear, but a major engine failure shortly after purchase, if not disclosed, would likely not be considered of satisfactory quality.
- Fit for Purpose: If you inform the seller that you require the car for a specific purpose, such as long-distance commuting or towing a caravan, the vehicle must be suitable for that use. Even if no specific purpose is stated, a car must inherently be fit for its common purpose – to be driven safely and reliably on public roads. A failure to meet this expectation could amount to a breach of the SGA.
- As Described: The vehicle must match any descriptions provided by the seller, whether in advertisements, on their website, or during discussions. This includes details about the make, model, mileage, service history, and condition of the car. For instance, if a car is advertised as “one owner, low mileage” but the history reveals multiple owners and higher mileage, this would constitute a breach. This principle is particularly vital in private sales, where the car primarily needs to be as described.
Failure by a seller to meet these obligations can leave them in breach of the SGA, which provides buyers with legal remedies.
Private Seller vs. Dealership: Understanding the Nuances
While the Sale of Goods Act 1979 applies to both private and professional sellers, the practical implications and the ease of seeking redress can differ significantly. Understanding these distinctions is key to navigating any dispute.
| Feature | Buying from a Private Seller | Buying from a Dealership |
|---|---|---|
| Primary Act | Sale of Goods Act 1979 | Sale of Goods Act 1979 (complemented by Consumer Rights Act 2015) |
| Key Obligations | Car must be as described. | Car must be of satisfactory quality, fit for purpose, and as described. |
| "Buyer Beware" | Stronger emphasis. It's harder to claim against undisclosed faults unless misrepresentation can be proven. | Less emphasis. Higher expectations of quality and disclosure from professional sellers. |
| Disclaimers | A seller giving a disclaimer (e.g., "sold as seen") may significantly limit your rights. | Disclaimers from dealers are generally less effective against statutory rights. |
| Ease of Claim | More challenging. Often relies on proving the car was not as described or misrepresentation. | Generally easier due to professional obligations and dedicated dispute resolution services. |
| Typical Remedies | Repairs (paid by seller), difference in value. Full refunds are rare unless significant misdescription. | Repair, replacement, or refund, depending on the fault and time of discovery. |
For private sales, the car essentially needs to be as described in the advert and reflect what the seller told you when you bought the car. If the car is faulty or the vendor has failed to mention something, it doesn’t necessarily mean you will be entitled to anything. And if a vendor has given a disclaimer as part of the sale, then you may not have any rights at all. Conversely, dealerships are held to a higher standard under the SGA, and remedies are typically more robust.
Common Issues in Dealership Purchases
Even when buying from a reputable dealer, issues can arise. The SGA helps protect against these common problems:
- Faulty Vehicles: One of the most frequent complaints arises when cars develop faults shortly after purchase. Under the SGA, dealerships are obligated to ensure the vehicle is of satisfactory quality. If defects or faults significantly reduce the car’s value or render it unsafe or unfit to drive, buyers can take legal action to hold the dealership accountable.
- Misrepresentation: Misrepresentation occurs when a dealership provides false, misleading, or incomplete information about a car. Examples include incorrect mileage, an undisclosed accident history, or false claims about the vehicle’s condition. If you relied on this information when deciding to purchase, and it turns out to be untrue, you may have grounds to cancel the contract and demand a refund.
- Extended Warranties and Agreements: Many dealerships offer extended warranties or service agreements as part of their sales. If these warranties are not honoured, or if the terms were misrepresented during the sale, this may give rise to a dispute.
What to Do When a Used Car Falls Short: Your Action Plan
If you discover that your used car is not as described, or if it develops a fault that suggests it wasn't of satisfactory quality or fit for purpose, acting promptly and systematically is crucial. The amount of time you have to make a complaint is six years in England and Wales (five years in Scotland), but it will be a lot harder to claim against any private vendor the longer you keep the car, so if you have a complaint, get in touch as soon as possible.
Initial Steps: Document the Issue
Before contacting the seller, ensure you have all relevant documentation. This includes the purchase agreement, any warranty details, the original advertisement, service records, and any correspondence with the seller. Take photographs or videos of any faults or damage to the car as evidence. This paper trail will be invaluable should a dispute escalate.
Contacting the Seller
The first step is always to communicate your concerns directly to the seller. Clearly outline the issue and specify what resolution you are seeking, such as a repair, replacement, or refund. Keep a record of all correspondence and any responses received. As with buying from a dealer, keep the seller informed about the situation, rather than landing them with a repair bill without any notice.
Seeking a Resolution – Your Rights
Under the Sale of Goods Act 1979, several remedies may be available to you:
- Repairs: You can get quotes from a garage for repairs and come back to the seller to ask them to pay for the work. However, the seller may refuse. It's important to note that the repair bill cannot come to more than what you paid for the car in the first place.
- Difference in Value: If a seller refuses to pay for repairs, then the next compromise is for them to offer you the difference in value between what you paid and what the car is really worth. This compensates you for the diminished value of the vehicle due to the undisclosed fault.
- Refund: If the breach is significant and discovered within a reasonable period after purchase, you may be entitled to a full or partial refund. For example, if a car develops major faults shortly after purchase, a full refund may be justified. This remedy is generally more achievable when buying from a dealership.
- Compensation: Buyers may also claim damages for additional expenses incurred due to the seller’s breach, such as repair costs, loss of use, or the expense of hiring alternative transport.
Formalising Your Complaint
If direct communication doesn't yield a satisfactory outcome, the next step is to send a formal complaint letter to the seller. There are form letters online you can use that include legal wording for such situations, and inform the seller that you are looking to escalate your complaint. This formalises your position and demonstrates your intent to pursue the matter.
Escalation Pathways
Should the formal complaint letter not resolve the issue, you have further avenues:
- Alternative Dispute Resolution (ADR): Beyond formal letters, you can choose an Alternative Dispute Resolution (ADR) scheme. This avoids taking the complaint to the Small Claims Court (which can be expensive and time consuming), and sees a third party intervene to help mediate between both sides of the complaint. ADR services are designed to be quicker and less formal than court proceedings.
- Small Claims Court (Simple Procedure in Scotland): As a last resort, if all other avenues fail, you can take your complaint to the Small Claims Court. In Scotland, a small claim is called a Simple Procedure and is limited to goods up to a value of £5,000. While this can be effective, it requires time, effort, and potentially legal costs.
Specific Scenarios & Added Protections
The landscape of car buying is diverse, and your rights can vary slightly depending on how and from whom you purchase your used vehicle.
Buying a Car Online
Buying a car from a dealer through an online auction site or directly online gives you exactly the same legal protections as buying face to face. Furthermore, you are also protected when buying online by The Consumer Contracts (Information, Cancellation, and Additional Charges) Regulations 2013. This gives you the right to cancel within 14 days of placing the order and then a further 14 days to return the car. A dealer should then issue a refund within 14 days of getting the car back. This provides a significant cooling-off period, which is invaluable when purchasing sight unseen.
Buying at an Auction
You need to check the terms and conditions of the auction company very carefully when buying at a physical auction. Many will exclude the Sale of Goods Act in their terms and conditions, so cars will be ‘sold as seen’ or ‘as is’. This means the burden is on the buyer to check the car’s condition thoroughly before bidding. The auction firm is generally not the seller, so they are not liable for any faults – you will have to raise this with the seller who submitted the car to auction, which can be challenging.
Complaining About a Used Car from a Dealer
If you cannot resolve a complaint directly with a car dealer, you can ask The Motor Ombudsman (TMO) to help. This needs the dealer you bought the car from to be signed up to the TMO’s Codes of Practice. When you contact the TMO, explain the issue and what steps have been taken to sort it out. If the TMO can mediate, it acts as an Alternative Dispute Resolution service, though you might not always get the outcome you hope for, it offers a structured pathway for resolution outside of court.
Conclusion
Hopefully, you won’t have to use any of these measures when buying a used car, but it’s good to know that you’re not alone if the vehicle you buy lets you down. Understanding your rights under the Sale of Goods Act 1979, coupled with knowledge of specific consumer protections for online purchases and the role of bodies like The Motor Ombudsman, empowers you to make informed decisions and take appropriate action. Remember, acting promptly, documenting everything, and communicating clearly are your best allies in resolving any issues that may arise with your used car purchase.
If you want to read more articles similar to Used Car Rights: Your Guide to the Sale of Goods Act 1979, you can visit the Automotive category.