automotive lawyer

Returning a Faulty Car on Finance

Faulty Car Bought on Finance
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Returning a car on finance due to faults

Cars are one of life’s bigger purchases, and whilst finance agreements can make it easier to spread the cost, they are in themselves a huge commitment. So what happens when there is something wrong with a car you’ve bought on finance? You are well within your rights to reject a car that you have purchased through a finance agreement if there is a fault with it. Stormcatcher Law can help guide you through this process. 

You have rights when it comes to faulty cars on finance, but it is a complex area; we are here to help you avoid the pitfalls so many consumers fall into. Whether it is a right-to-repair issue, broken beyond repair, or something that will require the financial ombudsman, we can help. 

We have many years of experience in helping people with car finance claims for faulty cars. We can provide advice, and deal with the sellers and finance company to ensure that you get the result you need.

Free Initial Legal Advice For a Faulty Car Bought on Finance

What do I do if I bought a faulty car on finance?

Have you ever wondered about your rights concerning a faulty car on finance bought from a dealer? Numerous online forums offer advice on how to address the issue, yet merely 30% of consumers see their complaints validated by the financial ombudsman. Why the discrepancy?

A widespread belief is that you can simply return a malfunctioning car on finance within 6 months of its receipt. Others think that booking their vehicle into a local dealership for repair and sending the bill to the seller is the way to go. Both assumptions are wrong.

Whether your goal is to have your faulty car on finance fixed, or to return it, you should get a health check at a reputable dealer. Recognising the exact issue is vital for your next steps.

The fact that it might need repairs or part replacements doesn't automatically classify the vehicle as being of unsatisfactory quality, granting you the right to a repair or return.

This dynamic can result in customers bouncing between the car dealer, finance broker, and the finance company, each pointing fingers at the other. If you've acquired a defective car on finance and feel stranded, it's time to consult a car finance specialist.

Right to Repair

The right to repair or replace is what most car buyers seek. The law acknowledges that issues arise and expects dealers to rectify them. This premise raises several questions:

  • Can sellers employ second-hand components?
  • Is it permissible for the dealer to utilize my warranty to cover repair costs?
  • Is the use of the warranty mandatory?
  • What’s a reasonable repair duration? Regardless of the proceedings, always keep your finance company in the loop—preferably in written form./cl/

Your car on finance is broken beyond repair: what's next?

Three scenarios can lead to the return of a car on finance:

  1. A defect manifesting within 30 days of delivery, termed as the short-term right to reject. This is arguably the trickiest grounds for a return due to the evidence required.
  2. Post the initial repair, the car's issue persists or a new fault emerges. Does a different defect than the original qualify for a return?
  3. The vehicle can technically be fixed, but the effort is either disproportionate or cannot be done without causing significant inconvenience or beyond a reasonable duration.

A prevalent query revolves around the feasibility of returning a car on finance after the six month mark and the associated legal intricacies.

Like all legal scenarios, the success in returning a car on finance hinges on the strength of evidence and apt application of laws. Relying on consumer rights, where the dealer must demonstrate that your car's issue wasn't present at purchase, can be a risky proposition. Speaking with motor industry lawyers like Stormcatcher can help.

What Our Customers Are Saying

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Lorraine Ballantine
September 8, 2026
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Exceptional Support During the Most Stressful Consumer Dispute I Have Ever Faced There are very few occasions in life when you genuinely feel that someone has stood beside you through a difficult situation and helped you achieve the right outcome. My experience with Philip Harmer and Antonia at Stormcatcher Law was one of those occasions. I approached Stormcatcher after what had already become an exhausting and highly stressful dispute involving a faulty £82,850 motorhome with a Dealer based in Cannock. By that point, I had spent months dealing with repeated faults, unsuccessful repair attempts, cancelled trips, endless correspondence and increasing frustration. What should have been an exciting purchase had turned into one of the most draining experiences I have ever faced as a consumer. From ourfirst conversation, Philip gave me something I had been missing for a very long time: confidence that somebody was actually listening, understood the situation and had a clear plan for how to deal with it. Throughout the dispute, Philip and Antonia were professional, patient, supportive and wonderfully persistent. No matter how many setbacks occurred, they remained calm and focused. When I felt frustrated, they remained measured. When deadlines were missed and arrangements failed, they kept moving the matter forward. When the process became emotionally draining, they gave me confidence that I was not fighting the battle alone. What impressed me most was the balance they struck between legal expertise and genuine human support. I was never made to feel like just another file. The advice was always clear, practical and honest. Expectations were managed properly and communication was excellent throughout. By the time Stormcatcher became involved, the dispute had generated a huge amount of evidence, correspondence and history. Philip took the time to understand every aspect of it and never lost sight of the key objective: achieving the right outcome. After months of resistance, delays, missed commitments and legal arguments, Stormcatcher ultimately secured repayment of the full £82,850 purchase price and brought a dispute that had lasted almost a year to a successful conclusion. The financial result was obviously important, but what meant even more to me was the sense of relief that came from finally bringing the matter to an end. After living with the stress of the dispute for so long, I cannot adequately describe how grateful I was to have someone in my corner who was prepared to keep going until it was resolved. I would like to personally thank Philip Harmer and Antonia at Stormcatcher Law for their hard work, professionalism, patience and determination. If you are facing a difficult consumer dispute and need solicitors who genuinely care about achieving the right outcome for their client, I would recommend Stormcatcher Law without hesitation. I am incredibly grateful for everything they did for me. They helped me bring a very difficult chapter to a close, and that is something I will never forget. Thank you, Philip and Antonia.
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Dale Tierney
September 6, 2026
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I first spoke to Phil when I was a couple days out from submitting to court, and thankfully I did. Although I possibly could have still won he pointed out a few issues and told me to take the case forward in a different direction a stronger direction (alot stronger) than it originally was. With his and Antonia's advice along the way the case seemed to grow from strength to strength. After months had gone by, I won my case and I am fully paid up. your reassurance and guidance helped me get to this position so thank you. Highly recommend.
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Emma Nott-Macaire
August 26, 2026
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I’ve been dealing with a very stressful and complicated situation with my car and Antonia has been incredibly helpful today. She has been completely transparent, honest and incredibly knowledgeable. She has taken the time to understand the situation, clearly explain my options and give me practical guidance on the next steps, without making me feel pressured or trying to sell me anything. Antonia has been so generous with her time and advice and when you’re already dealing with a stressful and expensive situation, having someone who is genuinely willing to help and give straightforward, impartial advice makes such a difference. Thank you so much, Antonia, for all your help and support so far. It has made a difficult situation feel much more manageable. I would absolutely recommend Stormcatcher Law to anyone who needs honest, knowledgeable and genuinely helpful advice.
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Susan
August 14, 2026
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If your vehicle is not as described or not fit for purpose then I highly recommend you contact Stormcatcher Law. Fees are transparent from the outset (not high) and the service is professional. The initial video call with Philip for a fixed fee was worth its weight in gold to us. For some people I can see that this is all they need. The no-win no-fee alternative company would have cost us thousands more in fees and they don’t have the motivation to get anything more than a basic settlement. Philip must be one of the most experienced people in the field of automotive consumer law. If he thinks you have a case, he uses his clearly extensive knowledge to produce an argument that a dealer will ultimately find impossible to ignore. In our case (against a large motorhome dealer in Newark), Philip wrote numerous letters to the dealer detailing the legal precedents supporting the rejection of our motorhome. We bought our motorhome new in 2025 and the engine failed (oil pump failure) at more than the 6 month window meaning the burden of proof that the fault was existing at time of sale lay with us. As Fiat had agreed the fault was covered by the warranty AND that the repair had not been carried out in ‘a timely manner and without significant inconvenience’ Philip was able to construct a solid legal argument as to why we were entitled to reject the motorhome under the consumer rights act and receive a refund. The motorhome dealer refused to accept our legal grounds for rejection for a number of months but Philip pursued them confidently and consistently ultimately winning for us without the need to actually go before a judge. Even when the initial offer came in, Philip was confident we could achieve more for pecuniary losses and compensation - He doesn’t give up easily. However he respected and supported our decision to take the money and run! Philip was clear to us at the outset that he cannot represent clients in court but I get the impression most of his cases are resolved outside of court. We initially thought our only hope was the Motor Industry Ombudsman but now think they gave us lazy advice and this process would likely take months/years longer to resolve. The legal cover with our motorhome insurance policy couldn’t work out if we had a case or not! This situation had been incredibly stressful for us and had gone on for months before Philip quite literally took the load off us - we cannot thank Philip and Antonia enough. Prior to us engaging Stormcatcher, there was no hope of achieving any resolution. In desperation we had even written a begging letter to ask the dealer to make us an offer to take the broken motorhome off our hands but they declined. Of course the sum we ultimately got was far in excess of what we would have accepted at that point had it been offered. At point of settlement we were towards one year after breakdown and the vehicle is still not repaired due to lack of parts. Our vehicle was based on a Fiat Ducato. It is difficult to convey the gratitude we feel towards Stormcatcher Law. They genuinely seemed to care and wanted us to win. They are absolutely not a faceless legal firm.
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G9
August 7, 2026
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After watching some of Phil's videos on youtube I started the frustrating and downright pisstake that is trying to get a finance unwound on a faulty car. Whilst I have not yet solved this issue, the advice given in the videos was very helpful in getting the process started. I then called in to stormcatcher to get some further advice as I had hit a brick wall with the finance company. Phil took time out to speak with me personally and was very sympathetic, assuring and gave very helpful succinct advice for going forward. Such a kind hearted person. Its not often you find a company with such kind and helpful staff that actually know what they're talking about too! If you need help with car finance issues don't hesitate to contact them. Thanks again Phil, what a godsend.
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Emily White (Emily Lily)
July 30, 2026
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I had to call for some advice regarding the Consumer Rights Act, and I honestly couldn’t have asked for a better experience. I had the pleasure of speaking with Antonia, who was incredibly kind, patient, and understanding. As a new mum with a serious case of “baby brain,” I wasn’t explaining everything as clearly as I would have liked, but she never made me feel rushed or silly. She took the time to listen, understood my situation completely, and explained everything in a way that was easy to understand. It’s rare to come across someone who is not only knowledgeable but also genuinely compassionate. Antonia was an absolute credit to the firm, and her warmth made what was a stressful situation so much easier to navigate. I would highly recommend this firm to anyone looking for professional legal advice with a truly human touch. Thank you again, Antonia!
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Hawton House profile picture
Hawton House
July 26, 2026
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Antonia and Philip were amazing in helping me deal with my legal issues. I came to them with quite a complex situation regarding Car Finance and my Consumer rights and dealing with my insurance company. They went above and beyond to help me and Philip took the time to explain to me what was happening and why, explaining the process and making sure I understood what needed to be done. I feel like they took the time to understand me and my situation and genuinely wanted to help. My experience was filled with humility, understanding and every thing I was told would be done, was done in a timely manner, I was kept updated throughout the process. I could not recommend Stormcatcher enough!
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Lorna Starr
July 20, 2026
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My son and I are having a nightmare with a second hand dealer in the Uxbridge area. After less than a month and following an inspection it turns out that the Audi A3 we brought need either an engine rebuild or a new engine. We decided to reject the car only to be told that the dealer was not going to accept our rejection for various reasons not least because they believe we tampered with the engine! Apparently Service is tampering as is having the car inspected to work out why it burning oil at a rate of knots! Spoke to Antonia who was very reassuring and offered advice without any hard sell. Hoping the dealer will see sense before we have to go via small claims
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What counts as a fault with your vehicle? 

A fault is anything that prevents your car from operating normally. This could be anything from engine problems or gearbox malfunctions, to issues with the window operation, steering, or suspension. The car should meet standards that would be reasonably expected from a car of its age, mileage, and price, matching the description it was sold under, and the purpose it's expected to perform. It’s not just a car beyond repair on finance that you can reject. 

Examples of major faults include: 

  • Recurring engine stalling, which could happen as stalling in traffic, or present as rough idling, or failure to start
  • Slipping gears, which includes difficulty shifting, delayed acceleration, or sudden gear changes that make the vehicle unsafe or undrivable
  • Power steering malfunction, which can present as heavy or unresponsive steering due to faults in the electronic power steering system, hydraulic leaks, or sensor failures
  • Persistent electrical faults such as non-functional headlights, dashboard warning lights staying on, or immobiliser failures that prevent the car from starting
  • Critical safety defects, such as faulty airbags, defective seat belts, malfunctioning ABS, or braking system failures 

You cannot request a refund for minor faults, though the seller is obligated to fix them. Blown bulbs, problems with the air conditioning, small undisclosed scratches or dents, or slight wear to the brake pads are all a little annoying when taking delivery of a new-to-you car. However, they are not faults through which you can reject the car, though some may be recoverable under a manufacturer or dealer warranty, which raises a seperate issue of car warranty law issues.

Cancelling Car Finance Due to Faulty Car

Faulty cars bought on finance: what are your consumer rights? 

Consumer rights protect you if the car you’ve purchased on a finance agreement turns out to be faulty, and it will do so for up to six years. Under the Consumer Rights Act 2015, the vehicle you have bought needs to be satisfactory in its quality, and should be fit for purpose. This means that you can take action in accordance with this legislation if the car malfunctions, or is otherwise in unsatisfactory order. 

It is worth noting though that the longer you have the car, the harder it is to prove claims of fault. Normal wear and tear comes into play, and it could be tricky to hold the dealer responsible. 

Engaging the Financial Ombudsman for faulty car on finance

If your plea to return a car on finance gets declined, your next recourse is the Financial Ombudsman Service (FOS). The Ombudsman is a complimentary service designed to assess and rule on grievances related to consumer-regulated finance agreements. Familiarity with effective complaint lodgement and case preparation are key; to optimize your chances of a successful faulty car return, treat the complaint process with the rigor of a court case.

Assuming the Ombudsman is inherently on your side or possesses car finance expertise could be a mistake. This is particularly pertinent for claims exceeding £10,000, where the FOS offers a more economical alternative than court proceedings.

Although consumers aren't bound to the Ombudsman's decision and can resort to legal action, litigation costs might be daunting.

Cancelling car finance due to faulty car

Should your claim to the Financial Ombudsman be successful, the finance company may be obligated to fix the car, or concur with your decision to reject the car on finance and rescind the agreement.

This could mean refunding your deposit, reimbursing monthly instalments, covering incurred expenses, and interest. 

The benefits of using Stormcatcher Law for rejecting a faulty car on finance

Specialising in disputes such as those with car dealers and lenders means we know the industry inside out, and can draw on our experience to get you the outcome you deserve. A trusted consumer rights lawyer for finance disputes, such as those at Stormcatcher Law, can handle both new and used car complaints and claims, with a straightforward, knowledgeable approach that gives car owners confidence in pursuing their case. 

Litigation is an expensive and stressful process to go through; avoiding it whilst pursuing a positive outcome for your car rejection is our priority. We have a track record in settling car finance disputes outside of the courtroom, and take pleasure in helping complainants avoid this ordeal. 

With automotive law specialists behind them, our clients feel empowered and well-equipped in successfully rejecting a car on finance. 

Call About Making a Complaint to The Financial Ombudsman

Our car finance lawyer

Stormcatcher Law is led by Philip Harmer, a lawyer and arbitrator that possesses unparalleled knowledge of the automotive industry. His insight, expertise and straight-talking approach mean he can pursue positive outcomes quickly and effectively; he simply knows the cars, the rules and the motor trade inside out. In short, Philip is the person to have on your side when you are rejecting a car on finance

Why choose Stormcatcher Law for returning a car on finance? 

If you are looking to reject a car on finance, the reasons to choose Stormcatcher Law are simple:

Industry expertise and experience 

With a deep understanding of car finance disputes, dealer practices, and lender regulations, we know how to navigate the system to get the best outcome for you. 

Stress-free resolution

We prioritise settling disputes outside of court, saving clients time, money, and stress while still achieving successful car rejections.

Specialist legal support

Led by an automotive law expert, we provide clear, knowledgeable guidance, giving clients confidence, and the best chance of success in their case.

Cancelling Car Finance Due to Faulty Car

Should your claim to the Financial Ombudsman be successful, the finance company might be obliged to fix the car or concur with your decision to reject the car on finance and rescind the agreement.

This could encompass refunding your deposit, reimbursing monthly installments, covering incurred expenses, and interest. Naturally, a range of outcomes is plausible, but it’s feasible to reject the vehicle and recuperate your funds.

Return a Car On Finance‌‌
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Getting a refund for a faulty vehicle on finance after 6 months - FCA rules v Consumer law 2015?

Want refund for a faulty vehicle bought on finance after 6 months from sale can be difficult because of the interplay between the Financial Conduct Authority rules and the law. If you have tried to reject your car you have probably been told by the dealer and car finance firm that under the Consumer Rights Act 2015 the burden of proof lies with you to prove that the car was not of satisfactory quality and fit for purpose at the point of sale. But does this mean the finance company does not have to comply with FCA rules to investigate your complaint.

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Faulty Car Bought on Finance FAQ

When buying a car on finance as a consumer you have the protection of a number of consumer law and common laws where the vehicle is faulty, has been missold or misrepresented or you have been misled or scammed.

These legal rights entitle you to a range of legal remedies including the right to repair, rejecting the car or a claim for damages or compensation.

To reject a car on finance, you will need documentary evidence proving the car is faulty, misdescribed or has a hidden history. This should be sent to the finance company along with your written rejection of the vehicle. Once received, the finance company are duty bound to investigate the complaint and provide you with a written outcome.

As a rule, once you have exercised your rejection of the car you should stop driving it. However, you should first obtain expert legal advice which you can obtain via our advice line.

Whilst rejecting a car on finance, it is possible to hire a car to use if the finance company has not supplied you with an alternative vehicle, and claim the cost back from the business. However, you should first obtain expert legal advice on this, which you can obtain from our automotive law expert.

Technically if you reject the car and have good legal grounds to do so then you are demonstrating you no longer wish to be bound by the terms and conditions of sale. However, non-payment of the finance may damage your credit rating, although if you succeed in court or with the Financial Ombudsman this will in all likelihood be rectified. As with all these things, if in doubt, obtain expert legal advice and call The Car Lawyer.

If the car finance company does not uphold your complaint and refuses to accept the return of the car you have the right to escalate the complaint to the Financial Ombudsman or the court. It maybe the finance company has misunderstood your complaint or the evidence you have supplied and has as a result arrived at the wrong conclusion. It may therefore be a good idea to get a second opinion from a specialist lawyer before proceeding.

The Financial Ombudsman Service (FOS) is appointed under the Financial Services and Markets Act 2000 to adjudicate on regulated consumer finance and insurance products. The FOS are tasked to investigate and decide complaints, which finance companies are bound by. Importantly customers have the choice to accept the decision or not, and if they do not, can make a court claim.

Escalating a complaint to the Financial Ombudsman can be done after receiving the final response from the finance company and by completing the online form on their website, sending with it all the evidence upon which you intend to rely. If your finance company does not uphold your complaint it is crucial to consider the reasons why, and get a second opinion before escalating to the FOS.

No, the Ombudsman service is intended to be accessed and handled by the individual. However, the finance company will be a large company with expertise in financial products and likely have a legal department or in-house solicitors.

On the other hand, the ombudsman service does not employ solicitors and there may be a risk of the finance company unfairly influencing the results.

It would, therefore, be sensible to at least get legal advice before submitting your complaint to the Ombudsman service.

Philip Harmer

About Philip Harmer

Philip studied consumer finance during his master’s degree and led the Finance and Insurance division for Mercedes-Benz Retail Group. His deep understanding of compliance processes, combined with Stormcatcher’s FCA authorisation, allows him to advise on HP, PCP, and insurance mis-selling with authority. He has acted against most major finance providers and is known for securing strong outcomes in complex finance disputes.

He regularly advises on car finance complaints, finance-related vehicle defects, and ombudsman referrals.

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