How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Joshua Your Own Question
Joshua, Lawyer
Category: Law
Satisfied Customers: 26070
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
Type Your Law Question Here...
Joshua is online now

Afternoon, I purchased a car on HP finance on the 27 April

This answer was rated:

I purchased a car on HP finance on the 27 April 2017, in August the car broke down, which ended up being major engine failure and had a bill of £6,000 to get it fixed. The car is 36 days over manufacturers warranty (Ford).Ford offered to pay £2000 towards this, the garage I bought it from want to take it for a 2nd opinion which will cost me at least £2000 to fix it with no warranty and I am waiting on the finance company to get back too me.My question is am I allowed to give the car back to the finance company, as the car is not fit for purpose? I am struggling financially and am having to hire other cars.Thank you ****************

Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience.

I am very sorry to read of the above. From the dates you kindly provide above, do I understand that the car was not new when you bought it on HP? You mention you only bought it in Aprill of this year?

Customer: replied 5 months ago.
the car is not new it's a 14 plate. Yes I Bought it April this year.

Many thanks. The position isn't quite as simple as just handing the car back to the finance company unfortunately though this is something you could propose and something the finance company could potentially accept given your following rights which with our permission I will outline below. Your agreement with the dealer includes implied rights under the Consumer Rights Act 2015 that among other things, the vehicle is to be of satisfactory quality and fit for purpose. From what you say, this is clearly not the case. You will also have mirror rights as against the finance provider by virtue of s75 Consumer Credit Act.

The good news is that during the first six months from your purchase, any faults are assumed to be the responsibility of the dealer unless he can proveotherwise - i.e. any faults are assumed to have been present at the time you purchased unless the dealer can prove that they were caused by damage by you or they represent fair wear and tear. That is very unlikely to be the case from what you say. After the first six months, the burden of proof switches to you to demonstrate that any faults were present at the time of purchase and have not been caused by damage by you or wear and tear however by my calculations you are still just in the first six months so your task is much easier if you strike now.

Providing you have evidence as above that the fault in question was present at the time of purchase (although as above this will be treated as the case unless they can prove otherwise as above), you can look to exercise your rights under s24 CRA 2015. This section provides You with the right to a price reduction or a replacement. In order to exercise your right, you need to have given the dealer at least one opportunity to repair or replace the vehicle and that the dealer has either failed to do so was failed to avail themselves of this opportunity within a reasonable time.

Subject as above, you can require the dealer to be responsible for all the repair costs that are required for your vehicle by a competent garage or you can look to reject the vehicle and the final right to reject under section 2 of the CRA and require a full refund less a reasonable deduction to take account of wear and tear on the car for the period you have owned it. You have a right to exercise one of these options but not both so you will need to decide whether you wish to seek a price reduction or wish to reject the vehicle. I assume given the severity of the fault, you may prefer the latter.

In either event, you will need to serve notice in writing upon the dealer of your requirement and either request the amount of price reduction require or notify him that you are rejecting the vehicle under your final right to reject under section 24 CRA 2015. If the dealer refuses to accede to either request, you can issue proceedings in the county court to recover either the price reduction you seek or the cost of the vehicle you paid less a reasonable reduction for wear and tear.

If you need any assistance in preparation of a letter of claim I would be pleased to assist.

Does the above answer all your questions? If it does, I should be very grateful if you would kindly take a moment to click a rating for my service to you today. Your feedback is important to me. If there is anything else I can help with please reply back to me though

Joshua and other Law Specialists are ready to help you