Rejecting a New or Used Car on Finance
Have you complained to a car dealer about a serious fault with your car, or that it has a hidden history, such as being previously written off, stolen, clocked, or because it has a fake service history?
Has a car dealer or finance company refused your rejection of a new or used car on finance under consumer rights law? If the answer is yes, you’re not alone. Stormcatcher Law can help.
Despite the Consumer Rights Act, requests for legal advice on car on finance rejection, new car rights, and from people who bought a used car from a dealer with problems have increased, although the true scale of the problem remains largely unreported. Statistics indicate around 50,000 people a year contact Citizens Advice about car problems and used car buyers’ rights.
Every year around 25,000 people contact the motor ombudsman to resolve a new car dispute, vehicle warranty, servicing or repair complaint. A similar amount complain to the financial ombudsman about finance linked to goods and services such as rejecting a used car bought under a hire purchase agreement.
This is likely to be only part of the picture, with many car buyers having bought from car dealerships who aren’t a member of the Motor Ombudsman scheme, are unable to get anything other than generic advice from Citizens Advice, and have no choice but to rely on the internet or use motoring lawyers or motor law lawyers.
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Reasons for Rejecting a Car on Finance
You can reject a car on finance on any grounds that prevent your car from operating normally. For example, engine or gearbox problems, steering or suspension malfunctions, and faulty window operation can all lead to a car that’s unfit for purpose. A car should be expected to perform similarly to others of the same age, mileage, and price, match the description it was sold under, and the purpose it's expected to perform.
You can’t reject a car for more minor problems, though the dealer is obligated to fix them. Irritations such as blown bulbs, air conditioning issues, or small scratches or dents aren’t ideal, but they are not grounds on which to reject a car.
The right to reject is established in consumer law - our consumer rights lawyers regulary advise clients on the consumer law right to reject a faulty car, helping to clarify when you are entitled to a refund, repair or replacement and how to enforce those rights effectively against dealers and finance companies.
Consumer Rights When Rejecting a Car on Finance
The Consumer Rights Act 2015 protects you if the car you have bought on finance is faulty; this protection lasts for up to six years. It doesn’t cover private sales; protection is for sales through official dealers. The car you have bought needs to be in good working order, and be fit for purpose, so you can take action in accordance with this legislation if the car malfunctions.
How to Reject a Car on Finance
The way you reject a car on finance will depend on how much time has passed since the finance agreement started.
Short Term Right to Reject a Car on Finance
You have the statutory right to reject a new or used car on finance within 30 days.
If a car doesn’t match the description it was sold to you with, or there is a problem that was there or was developing when you bought it, you have the right to reject it within 30-days if you can prove that that’s the case.
The right to reject applies in relation to suppliers, which in this case is the dealer (and the finance company jointly if you purchased the car on a finance agreement). The rights are not in relation to the manufacturer.
Final Right to Reject a Car on Finance
If a fault makes itself known after 30 days from purchase but before the six month mark, you are still eligible for a repair, replacement or refund. The dealer has one opportunity to repair or replace the fault vehicle, unless you have come to an alternative agreement. If this is unsuccessful, you are entitled to a refund, though bear in mind that the seller could take the use that you’ve had from the vehicle into account in the form of an adjustment to the refund value.
Rejecting a Car on Finance After 6 Months
There is still hope of rejecting a car after 6 months, though you are responsible for proving that the fault was present all that time ago. An example of when this might come into play is hidden damage coming to light during work undertaken on the car, pointing to concealed damage. Obviously, the more time that goes by, the harder it is to prove that the issue was there at the point of sale.
Rejecting a Car Purchased Privately Not on Finance
Unfortunately, private car purchases are far less protected. However, the Misrepresentation Act of 1967 offers some cover for buyers. This means that the seller must not misrepresent the car in the advert, though you are not entitled to anything just because there is a fault with the car, or because something wasn’t mentioned on the car ad.
It does mean, though, that if the seller doesn’t disclose any previous accidents, or lies about the service history, or number of owners, you can reject the car, and pursue legal action if they refuse to take it back. This is also the case if the car isn’t roadworthy.
If the car you have bought isn't as the seller described, you can ask for the difference in value between what you paid and what the car is actually worth. Alternatively, you can request the cost of fixing the car so that it matches the description.
Car Finance Rejection
Car rejection and rejecting a car after 6 months isn’t easy. Car dealers and finance companies have evolved to deal with car consumer rights claims and with it there is a growth of lawyers that are engaged with car dealerships that sell faulty, substandard vehicles and unroadworthy cars. Motor trade legal disputes are unpleasant and stressful.
Car Expert
The car seller is not going to accept your car rejection based upon your recital of the Consumer Rights Act, or allegations that the car should never have passed an MOT. You will need proper evidence and need to be able to apply the evidence to the law.
The car seller will generally know more about cars or provide an independent engineer report for a car in an attempt to blind you with science. The average high street solicitor for car problems will have next to no knowledge of the motor trade or any technical knowledge of the car. The good news is that neither will the car dealers’ legal services providers. The better the evidence, the better your chances of successfully getting a refund.
Experience
This is unlikely to be the car dealership's first rodeo and they will have experience in handling complaints, have a strategy for dealing with complaining customers and probably of customers ‘rolling over’. Ultimately, they’ve heard it all before and law firms and solicitors who take on car dealers are often out of their depth. There is no substitute for experience.
Cost
Dealers know solicitors are expensive and while they run the risk of having to pay your legal costs if they lose the court case, they also know that few will invest the amount required to hire lawyers, solicitors and barristers.
This leaves customers believing they have no choice but to refer to the Motor Ombudsman or Financial Ombudsman Service, which are free services. However, without professional advice, consumers are at the mercy of a system with which the sellers and finance companies are all too familiar.
The Benefits of Using Stormcatcher Law for Successful Car Finance Rejection
Rejecting your car under the guidance of Stormcatcher Law means that you:
Access specialist legal support
Our automotive law experts provide clear guidance that’s backed up with industry knowledge, giving you the confidence to pursue success in your case.
Industry expertise and experience
We have a thorough understanding of automotive disputes, dealer practices, and your rights - it’s our speciality. So, navigating the system to get the best outcome becomes so much easier with our help.
Are more likely to get a stress-free resolution Settling disputes outside of court is our priority; it saves your time, your money, and your stress levels.
Car Finance Rejection Lawyer
Philip Harmer leads Stormcatcher Law, operating as a lawyer and arbitrator with extensive knowledge of the automotive industry. By using the insight and expertise he has gained through his years of experience, he can offer straight-talking advice that get positive outcomes quickly and effectively. He knows cars, he knows the trade, and he knows the rules; he is the right person to have in your corner when you are rejecting a car.
Why choose Stormcatcher Law?
Having the right advice in your ear when you are pursuing the rejection of a car can make all the difference in getting what you want quickly. Stormcatcher Law is best placed to provide such advice, handling both new and used car complaints and claims with a straightforward, knowledgeable approach. It’s our pleasure to instil confidence in our clients using years of experience in settling car finance disputes outside of the courtroom.
If you want to reject a car bought from a dealer or under a finance agreement and want to know what your rights are and how to enforce them, before you complain about the garage to the Motor Ombudsman, call us for free advice.
As motor trade and car experts specialising in motor vehicle dispute resolution, we know the rules, the cars and the motor trade inside out.
Frequently Asked Questions
Rejecting a car is essentially returning the buyer and seller to the position they were in before you bought the vehicle; the car is returned to the dealer and the purchase prices refunded to the buyer, subject to any deduction for mileage and damage.
Yes. You must supply some evidence of the fault or the basis for your car rejection. The ‘engine management light coming on’ is not in itself evidence worthy of rejecting a car.
Breach of contract claims are statute barred after 6 years. This does not mean you have the right to reject a used car for six years after buying it, but you will not be prevented from making a claim until six years have passed.
You cannot return a car for a refund, simply if you do not like it, but you can if it has been misdescribed, not as advertised or it is not of satisfactory quality.
You can reject a new car or any new vehicle if it does not match its description or is not fault free. The standard of quality expected for a new car is naturally higher than that of a used car.
The Consumer Rights Act allows buyers to return a car within 30 days of taking delivery if it is not of the expected quality, it has been materially misrepresented or has a hidden history. This is known as the ‘short term right to reject’.
Yes. Rejection is a remedy for breach of contract, however, business to business transactions are often governed by terms and conditions which limit the liability of the dealer.
No, not necessarily, depending on the complexity and value of the claim. However, if one becomes necessary, there may be circumstances where an expert opinion from a specialist automotive lawyer maybe prove influential in resolving a car rejection dispute. Specialist lawyers for car rejection are few and far between, Stormcatcher Law being one.
Not necessarily. Each case will turn on its own facts. There may be circumstances where returning the car will enable you to receive the refund more quickly. On the other hand, it may not be possible or prove disproportionately costly to return it.
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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