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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Hi I brought a brandnew car 4 years ago, and used the garages

Resolved Question:

Hi
I brought a brandnew car 4 years ago, and used the garage's credit loan system, the garage went bankrupt about 2 years ago and my car has major problem's that I have had to fis including a new engine. IS there any law that protect's me as I had a loan for the car?
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

If you purchased the vehicle ON finance then yes you have protection.

Alex Watts :

The lender is liable for the dealers failings under Section 75 of the Consume Credit Act

Alex Watts :

If you had been to the bank and obtained a loan then you would not have the same protection

Alex Watts :

But If the dealer supplied the finance then you may have a claim.

Alex Watts :

If you purchased the car 4 years ago and the car had a warranty then you have a claim.

Alex Watts :

This is because you can sue the lender for breach of contract for the goods are faulty.

Alex Watts :

However if you did NOT have a warranty or it has expired and given the vehicle is 4 years old then you will not have a claim.

Alex Watts :

This is because the law states that you are entitled to protection for the warranty period or 6 months.

Alex Watts :

If the vehicle is out of warranty then you have no claim

Alex Watts :

If the vehicle is in warranty then you have a claim against the finance company

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

The warranty was a issue, the problem was first brought up under warranty but by the time the garage found out what the problem was the car was then out of warranty, the car manufacture did provide a new engine but did not cover labour costs. Since the repair the car have not been driven as I have no confidnce in the car, the car had only done 11,000 miles under warrenty when the engine first started to have problems.

Alex Watts :

How long as the original warranty?

Customer:

3 years

Customer:

I thought that if a company went bankrupt and you had a problem with goods brought from the bankrupt company on finance there was a law that covered you?

Alex Watts :

Yes to a certain extent

Alex Watts :

However if the car was OUT of warranty then you won't have a claim

Alex Watts :

The finance provider is only liable for the period of time the dealer would be, not for the life of the finance.

Alex Watts :

Therefore if a car is out of warranty then the lender is not responsible

Alex Watts :

Does that clarify matters?

Customer:

Yes thank you.

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