Rejecting faulty car on finance

Legal position:
Under the Consumer Rights Act 2015, which applies to purchases in England and Wales, if you bought a car from a trader (such as a dealer) and it has serious faults that mean it does not conform to the contract – for example, it is not of satisfactory quality, fit for purpose, or as described – you may have the right to reject it. This applies even if the car is financed, as the finance agreement does not remove your consumer rights against the seller. However, the process can be more complex with finance involved, as the finance company legally owns the vehicle until the agreement is fully paid (in hire purchase arrangements, for instance), and you may need to involve them in any rejection.

Key points include:
– Within the first 30 days after taking delivery, you can exercise a short-term right to reject for a full refund if the fault is significant and not minor.
– After 30 days but within six months, the burden is on the trader to prove the fault was not present at the time of sale; if they cannot, you may be entitled to a repair, replacement, price reduction, or final rejection.
– Beyond six months, you bear the burden of proving the fault existed at the time of sale, and rejection may still be possible if the fault is serious, but other remedies like repair might be offered first.
– For financed cars, any refund would typically need to settle the finance agreement, and you might receive the difference if the car's value exceeds the outstanding finance. Rights under the Consumer Credit Act 1974 may also apply, particularly if the finance is regulated.

This depends on factors such as the exact nature and timing of the faults, when you bought the car, the type of finance (e.g., hire purchase or personal contract purchase), and whether the seller is a trader or private individual. If the car was bought privately, your rights are more limited, as the Consumer Rights Act does not apply.

Practical next steps:
I would suggest the following structured approach, focusing on evidence and informal resolution first to avoid unnecessary costs or delays:

1. Gather evidence promptly: Document the faults with photos, videos, mechanic's reports, or independent inspections (e.g., from the AA or RAC). Note dates, mileage, and any communications with the dealer or finance provider.

2. Contact the dealer in writing: Send a clear letter or email rejecting the car if within the 30-day window, or requesting a remedy. Reference the Consumer Rights Act and provide your evidence. Copy in the finance company if applicable.

3. Involve the finance provider: If the dealer does not respond satisfactorily, notify the finance company, as they may have joint liability under section 75 of the Consumer Credit Act for misrepresentations or breaches by the dealer.

4. Consider escalation: If unresolved, you could use alternative dispute resolution (e.g., through The Motor Ombudsman if the dealer is a member), or seek advice from Citizens Advice. Only as a last resort, consider court action via the County Court, but weigh the costs, potential for counter-claims, and enforcement issues.

If you provide more details about the faults, purchase date, and finance type, I can offer more tailored guidance. If this relates to a different jurisdiction, note that I specialise in England and Wales; you may wish to consult Atlas for worldwide advice.