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Faulty Car Bought on Finance

Faulty Car Bought on Finance

If you have been mis sold or a faulty car bought on finance, you may have the legal right to have it repaired, replaced or reject it.

However, understanding what your rights when buying a used car from a dealer and  when something goes wrong with a car bought on HP or PCP can be a legal minefield.

This is made worse, by the surprising difficulty in determining whether the problem with the car is a fault, wear and tear or a characteristic of the vehicle. Even if you do conclude that the car is faulty and you have the right to reject a car on finance‌‌, this can be easier said than done.

Leaving many people being pushed from the car dealer, to the intermediary or finance broker and the finance company, each telling you the other is responsible. If you’ve bought a faulty car on finance and are getting nowhere,  call a car finance lawyer

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Faulty Car Bought on Finance

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Reject a car on finance

Rejecting a car on finance is nowhere near as easy as the online legal advice, blogs and forums would have you believe. There are three key reasons for this.

First is the misunderstanding about the circumstances which give rise to the short term right to reject a car on finance within 30 days.

Second, is whether a fault has occurred and been repaired by the seller and while the repair was successful the car has developed another fault. So can you reject a car if it’s a different fault than the original one?

Third, can you reject a car on finance after 6 months and what is the legal process for doing so ?

Like all legal cases to successfully reject a car on finance depends on the strength and reliability of the evidence and correctly applying the law.

What we do know is, that relying on the consumer rights rebuttable presumption where the dealer has to prove the problem with your car wasn’t there when you bought it is asking for trouble.

How to Reject a Car Not Fit For Purpose

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Making a complaint to the financial ombudsman

If the car finance company rejects a request to return a car on finance‌‌, you have the right to make a complaint to the financial ombudsman service.

The Ombudsman or FOS is a free service responsible for reviewing and adjudicating complaints involving consumer regulated finance agreements.

FOS decisions are binding on the car finance company. However, only 30% of people making a complaint to the financial ombudsman were successful last year.

The problem is in large part, due to consumers not knowing how to complain and how to prepare their case in give them the best chance of success.

The FOS was set up to resolve complaints "quickly and with minimum formality" and as alternative dispute resolution and  consumers are not expected to present “legal pleadings.”

However, the statistics speak for themselves. If you want to give yourself the best chance to return a car on finance‌‌ is to approach making a compliant to the financial ombudsman as if you were bringing a claim in court.

To  assume the Ombudsman is on your side, knows or understands about cars or that they are a car finance lawyer or even legally trained, could prove to be a  costly mistake. This is especially true for claims over £10000 where the FOS presents the most cost effective method to return a car on finance‌‌ rather than going to court.

Although, consumers don’t have to accept the Ombudsman’s decision and have the right to take the finance company to court, the cost of litigation will likely prove prohibitive.

Making a complaint to the financial ombudsman


0333 700 7676

Financial Ombudsman Claims

If you've bought a faulty car on finance or not as described and would like expert help making a complaint to the financial ombudsman we can help

To assist customers in trying to increase their chances of succeeding in their claim in rejecting a car on finance‌‌ Stormcatcher Car Finance Lawyers offer a fixed fee package costing either £595 + VAT (£714) or £995 + VAT (£1194) depending on the size of the claim.

The service includes all correspondence with the garage, broker and finance company, witness statements, case preparation and correspondence with the Financial Ombudsman, and legal advice through to the final decision.

Call The Car Finance Lawyer


If you succeed in making a claim to the financial ombudsman the finance company may be required to repair the car or agree to you rejecting a car on finance‌‌ and unwind the agreement.

This may involve the return any money put down as a deposit and reimburse any monthly payments as well as costs incurred and interest. Naturally there is a spectrum of outcomes and remedies available but it is possible to in effect to reject the car and get your money back

Return a car on finance‌‌


0333 700 7676

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