Your car buying rights

What are your rights when buying a used car?

Buying a car is one of the biggest purchases most of us will make. And it’s not just about the money you’re spending, if you’re looking for cars to finance then you’ll also be entering an agreement that could last for up to six years. It’s a big commitment and one that you shouldn’t rush into. Never feel pressured to make a purchase, whether you’re looking for cars on finance with bad credit or buying outright. If you have any doubts about the car, its history, or the seller, walk away.

The good news is that if you do buy a used car and something goes wrong, you have rights. The rights you have depend on where you buy it from. You’ll have less protection when buying from a private seller or at auction compared to buying from a dealer, for example. Consumer rights also vary depending on if you’re buying the car in England, Scotland, Wales, or Northern Ireland. For this guide, we’ll be focusing on your rights when car shopping in England.

What checks should you carry out when buying a used car?

You should carry out thorough checks when buying any used car. Make sure you ask the right questions of the seller and inspect the car fully before deciding to go ahead with the purchase. 

Your car checks should include:

• Any scratches or dents on the interior and exterior
• Under the hood and all the electric-powered features
• Its MOT and service history
• Using the DVLA checker tool to make sure the car’s registration, MOT test number, make, model, and mileage match their records
• Taking a test drive

Buying a used car privately

Buying cars from private sellers can be riskier than buying cars for finance through a dealership as you won’t be covered by the same legal protections. That’s one of the reasons why asking questions and carrying out your own checks on the car’s condition is so important. In most private car sales, buyer beware will apply unless the seller answers any questions untruthfully.

Legally, the seller must:

• Have the right to sell the car
• Make sure the car matches the description they’ve given
• Check the car is roadworthy

Be cautious, especially if the seller wants to meet you somewhere other than their home or if their name isn’t listed on the V5C registration document. It’s also worth remembering that a valid MOT certificate from a few months ago doesn’t guarantee the car is still roadworthy today.

If the seller does disclose any faults or issues with the car but you still want to buy it, make a note of the problems on the receipt.

A used car that isn’t as it was described is covered by the Sale of Goods Act 1979. You have six years to make a complaint. Go back to the seller to request a repair or refund and if they don’t respond, you can find template formal complaint letters online to escalate the issue.

However, if the seller has been truthful about the car’s condition and something goes wrong done the line, it’s likely you’ll have to cover the cost of any repairs.

Buying a used car from a dealer

Dealers generally provide buyers with the maximum legal protection and the least risk. They must adhere to the Consumer Rights Act 2015, no matter whether you buy the car outright or secure a finance car.

Buying a used car online

You have the same rights when buying a car from a dealer as you would if you’d walked onto the forecourt.

Buying online also means you’re protected by the Consumer Contracts (Information, Cancellation, and Additional Charges) Regulations 2013. These give you the right to cancel when you agree a contract at a distance. You can cancel from the moment you place your order until 14 days after you receive the car. You then have 14 days to return it to the dealer and you should receive a refund within 14 days of them having it back.

This process can be more complicated with dealing with cars for finance, so be sure to speak to the finance company first if you want to cancel your car purchase.

Consumer Rights Act 2015

The Consumer Rights Act 2015 came into force on 1^st October 2015 and covers the purchase of used cars from dealers as well as servicing, repairs, and maintenance work. It doesn’t apply to private sellers. Dealers must also have the right to sell the car and they’ll be liable for any faults that were present at the time it’s sold, even if they don’t become apparent straightaway.

Under the Act, used cars must be:

• Satisfactory quality
• Fit for purpose
• As described

What does satisfactory quality mean?

Satisfactory is a word that means different things to different people. When buying a car, it refers to the standard someone could reasonably expect considering the car’s age, value, history, mileage, make, and description. You wouldn’t expect an older car with a lot of miles on the clock to perform as well as a nearly new model that’s barely left the garage, after all.

Even so, the car should still be roadworthy, reliable, and in a condition that’s consistent with its history and price.  

How can I tell if a vehicle is fit for purpose?

Fit for purpose is another descriptor that depends on the driver and their needs. You should be able to use the car for the purposes that you’d normally expect like getting from A to B. But fit for purpose goes further than this. If the car has been advertised as appropriate for off-roading or you’ve told the dealer that you need a model that can handle multiple short journeys, then the car must meet these criteria as well. That’s why it’s important to let the dealer or your car finance account manager know exactly what you need in a new vehicle.

Am I covered for wear and tear when buying a used car?

Dealers aren’t liable for fair wear and tear of a used car. If it breaks down or a fault emerges through normal use or due to a fault or defect that you were already told about when you bought the car, the dealer isn’t responsible for resolving the issue, even if they deal with cars for finance.

Consumer Protection from Unfair Trading Regulations (2008)

The Consumer Protection from Unfair Trading Regulations (2008) legislation ensures that car sellers can’t give you any false information, in writing or verbally.

Under these regulations, dealers must not:

• Act aggressively to make a sale
• Give insufficient information
• Fail to act in accordance with reasonable expectations of what’s acceptable
• Engage in any of the 31 specific practices that are banned outright

Prohibited practices include falsely claiming to be endorsed by an organisation or telling you a car will only be available for a limited time to encourage a sale.

Can I get a refund for a faulty used car? 

If your used car develops a fault, you could get it repaired or replaced at no further cost. You don’t have any legal rights to get a refund if you’ve simply changed your mind or found a minor cosmetic issue or fault that could be easily fixed.

What are my rights to refund or reject within the first 30 days?

If you find a fault within the first 30 days of ownership, you can legally reject the car and receive a full refund. You can request a free repair instead if it’s an easy fix and you’d still like to keep the vehicle.

What are my rights after the first 30 days but within the first six months?

If you’ve had your new car less than six months, it’s presumed that the fault must have been present when you bought it, unless the dealer can prove otherwise. In this case, you must give the dealer the chance to repair or replace it.

You can express a preference but normally the dealer can choose the solution that would be cheapest or easiest for them to do.

If the car can’t be fixed, you can claim a refund or a price reduction if you want to keep it.

You’re entitled to a full or partial refund if:

• The cost of repair or replacement is more than the car’s value
• It’s impossible to fix
• It would cause you significant inconvenience
• It would take an unreasonably long amount of time

If a fault appears after more than six months, it’s down to you to prove that it existed at the time of purchase. In that case, you might need to ask an expert to examine the car or component and get a written report.

Can I reject a faulty used car bought on finance?

If you’ve bought a car on finance, it can be more complicated to reject as the car technically belongs to the finance company. Make sure you contact the finance car company first and tell them why you’re rejecting the vehicle. The dealer will then have to refund them directly so that they can terminate your existing agreement and pay you back your deposit. They’ll also pay back any payments you’ve already made, minus any deductions for fair usage.

What if the dealer doesn’t agree there’s a problem?

If you haven’t been able to reach an agreement with the dealer, don’t worry, you still have options! Going to court can be expensive and time-consuming, so contacting the Motor Ombudsman is a good place to start.

The Ombudsman is an independent organisation designed to help its members and consumers to resolve complaints in a way that’s fair for both sides and legally correct.

If the dealership where you bought your car is signed up to one of the Ombudsman’s Codes of Practice, you’ll both receive free advice and dispute resolution.

How to make a complaint

First, let the seller know that you’ve found a fault with the car. We know it can be hard to keep your cool when you rely on your car to get to work or take the kids to school but try to remain calm. Being polite but firm is often the most effective way to get a good outcome and losing your temper will rarely help the situation.

Keep a record of all your conversations, just in case. Follow up any phone calls with an email, ask them to put any verbal agreements in writing, and take a note of the dates and times that your conversations take place.

How can I choose a trustworthy dealer?

If you’re looking for cars on finance with bad credit or buying your first car, it can be tough to know which dealers you can trust. Forget the old stereotypes, these days used car dealers pride themselves on stocking high quality cars and delivering excellent customer service.

Look for a well-established company with a good reputation. Don’t be afraid to check reviews online or pay them a visit if you live close-by. When searching for cars for finance with us at CarFinance 247, you can ask your account manager for help and look out for listings from our Marketplace sellers. These dealers work closely with us and have customer-generated star ratings displayed next to all their vehicles to give you that extra reassurance.

Is there a 14-day cooling off period?

No matter the type of car finance agreement you’ve signed, car finance for bad credit, a personal contract purchase loan, or hire purchase deal, you have 14 days to reject it. Those 14 days – known as the cooling off period – either start on the day you sign the agreement or the day that you receive a signed copy of it, whichever comes later.

It’s important to remember though that ending your agreement doesn’t automatically mean you’ve also pulled out of your contract to buy the car. You may need to find another source of funds to purchase the finance car.

Can I get guaranteed car finance?

When searching for car finance bad credit, you’ll likely come across companies claiming to offer guaranteed car finance. While everyone over 18 has the right to apply, no one can guarantee car finance. If you’re looking for cars on finance with bad credit and are tempted by a company advertising this, we’d advise treading carefully. Every lender has a set of criteria that must be met for them to approve a loan. These rules are in place to make sure that your car finance deal is right for you and your current circumstances. Here at CarFinance 247, we work with a panel of lenders to help people find car finance for bad credit. We might even be able to help if you’ve been refused elsewhere!