Buying a new or used car carries a myriad of legal implications. The following top tips will help consumers protect and understand their rights during the purchase process.
A motor retailer is a safe bet
Whether buying face-to-face or online, going to a dealership or an independent garage offers the most legal protection with the least risk, as the car is checked over and prepared before going on sale. You are also covered by the Consumer Rights Act 2015 as of 01 October 2015, and the Sale of Goods Act 1979 for cars bought before this date.
Take action during the first 30 days
If after buying the car, you think it’s not of satisfactory quality, not fit for purpose, or not as described, you have the ‘early right to reject’, meaning you can take it back within 30 days of the purchase and get a full refund. If you find a defect within the following five months, you can give the dealer a chance to repair or replace the car. After that, it’s down to you to prove that there was a problem when you were handed the keys.
Be thorough if going private
When purchasing from a private seller, either face-to-face or through an online auction site, your rights are much more limited. Therefore, it’s your responsibility to do your homework and a detailed inspection. If you discover a fault after driving off, you will need to demonstrate that the vendor had not previously made you aware of it should you wish to pursue them in court.
Bid with caution
At a live auction, cars are ‘sold as seen’, and like a private purchase, you have very little legal protection. Check the specific terms before bidding, as the auctioneer cannot be held liable for the ownership status of a vehicle i.e. if it has been stolen.
It pays to check
How you pay a motor retailer affects your rights if there is a problem. If it’s hire purchase, you are also protected under section 75 of the Consumer Credit Act 1974, and it’s the finance provider who is legally responsible. If you paid for all or part of the cost of your car by credit card, the card company and the trader may be jointly responsible for compensating you under the same law. For debit cards, it’s slightly different, and you may be able to get a refund through a voluntary scheme known as ‘chargeback’.
Watch out for the pre-purchase contract
A dealer may ask you to sign a contract saying that you’ve driven the car that you wish to buy and that you are happy that there are no faults. However, whether it is or isn’t signed, this cannot be enforced in the event of a future problem as it has no legal standing.
Look into the distance
In June 2014, the Distance Selling Regulations became the Consumer Contracts Regulations, and apply to anything which is bought without ever seeing it such as when a purchase is made over the phone or online. Also, if any part of the contract negotiations are not at the dealer premises, Consumer Contracts Regulations may apply, but only if the consumer has not physically seen the goods.
Sellers are obliged to provide an accurate description of the car including the full price including VAT and any additional charges such as delivery. However, double check who the vendor of the vehicle is, as you are only protected if you are buying from a business rather than an individual. If it’s not a private sale, you have the right to cancel your order within seven working days and receive a full refund within 30 days.
Communicate and conciliate
It also pays to talk, and in the rare event that something goes wrong after buying a car, contact the seller first to try to resolve the issue directly. Failing that, you can try to settle the dispute by engaging in Alternative Dispute Resolution (ADR) via a neutral third party such as Motor Codes, to help avoid the expense of going to court. If a vendor does not have or wish to use an ADR provider, then go to the Small Claims Court. In addition, the trader cannot be held responsible for fair wear and tear if a vehicle breaks down or a fault has occurred from normal use.
Rejection can be hard
If you have exhausted all channels, and you no longer want the car after any attempted repairs by the dealer, you have a right to reject the car within six months of the date of purchase, but it can be a long, frustrating and lengthy process. Once you have decided to take this action, stop using the vehicle immediately as you have deemed it not fit for purpose.
If you’ve bought the car on finance, but not through the manufacturer, you will need to contact the provider with the letter of rejection as you don’t legally own the vehicle, and they will then liaise directly with the retailer.
Changing status
If you have lost faith in the car, or you think that you paid too much, you are not entitled to money back. However, if you have signed for the vehicle at a dealer, and then you change your mind, the seller can keep your deposit, or at least the equivalent cost of what that they have spent on getting your car ready. If there is a clause in the contract that the dealer has not fulfilled, or the car is not as advertised, then you are entitled to a full refund.
Verify the true mileage
You should always ask the trader for specific information on the vehicle’s mileage regardless of whether they have inserted a disclaimer into the contract stating that it cannot be guaranteed. If you believe that the mileage has been altered, seek professional advice.
