Used Car Problems: Refund Rights & What to Do
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Buying a used car can feel like navigating a minefield. From hidden faults to misleading warranties, it’s easy to feel overwhelmed and end up with a lemon. But knowledge is power. This guide equips you with the information you need to protect your rights and make a confident purchase.
Understanding Your Rights: The Consumer Rights Act 2015
The cornerstone of your protection when buying a second-hand car is the Consumer Rights Act 2015. This legislation provides significant rights that many dealerships don’t readily advertise. It’s crucial to understand these, as they supersede any attempts to limit your legal recourse.
Implied Statutory Warranty: Beyond Dealership Promises
Dealerships often try to limit your protection with short, off-the-shelf warranties – one to three months is common. Don’t be fooled. The consumer Rights Act 2015 provides an implied statutory warranty lasting up to six years in England and Wales, and five years in Scotland. This means the car should be of satisfactory quality, fit for purpose, and as described.
This isn’t an optional extra; it’s your legal right. If a fault develops within this timeframe that wasn’t present at the time of purchase, you’re entitled to a repair or, in some cases, a full refund. Don’t let a dealer tell you “it’s out of warranty” without referencing the Consumer Rights Act.
Rejecting a Faulty Vehicle: What You’re Entitled To
If you discover a fault shortly after buying a car, you have the right to reject it and receive a full refund. Here’s how to approach this:
Act promptly: Don’t delay in notifying the dealer of the issue.
Document everything: Keep records of all communication, including emails, letters, and notes of phone calls. Be prepared to negotiate: Dealerships may initially resist a full refund. Don’t accept the first offer if you’re not happy with it. Be firm but polite, and clearly state your rights under the Consumer Rights Act 2015.
Mileage deductions – the scam to avoid: Be aware that some dealerships will attempt to deduct 45p per mile for usage when calculating a refund. This is a common, but false, practice. The Financial Ombudsman Service (FOS) has repeatedly ruled this unfair, and HMRC doesn’t provide guidelines for such deductions. The FOS considers 25p per mile a fair and acceptable deduction, if any.
Dealing with Dealership Tactics
Unluckily, some dealerships employ tactics designed to minimize their liability. Knowing these tactics can help you avoid falling victim to them.
Challenging Spurious Terms and Conditions
If a dealership tries to enforce a clause in their terms and conditions that undermines your rights, ask them to pinpoint the exact paragraph they’re relying on. The Consumer Rights Act 2015 includes a “fairness test” - any key terms must be prominent, fair, and transparent. If they can’t justify the clause, it’s likely unenforceable.
The Motor Ombudsman: A Word of Caution
While checking if the garage is a member of the motor Ombudsman scheme seems like an excellent idea, experience suggests it’s frequently enough a dead end.Many find it ineffective in resolving disputes. Focus your efforts on the Consumer Rights Act 2015 and, if necessary, the Financial Ombudsman Service.
Essential Pre-purchase Checks
Prevention is always better than cure. Taking these steps before you buy can save you a lot of heartache.
Thorough Inspection: Get an autonomous inspection from a reputable garage or mechanic. This is arguably the most significant step.
Vehicle History Check: Run a vehicle check online to verify the car hasn’t been stolen, writen off, or has outstanding finance.
Documentation is Key: keep copies or screenshots of all adverts and communications with the seller.
Secure Payment: Never pay by bank transfer or “friends and family” via PayPal. These methods offer little to no protection.
Bring a Buddy: Take a friend or someone educated about cars with you when buying privately.
Avoid Facebook Marketplace: While tempting, Facebook Marketplace is rife with scams and unreliable sellers.
Where to Get Help
If you find