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JimLawyer, Solicitor
Category: Law
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Experience:  Senior Associate Solicitor
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I bought a car with finance from a car dealership and paid

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Good morning. I bought a car with finance from a car dealership and paid £200 deposit with my credit card. The total cost of the car £9,679, so the amount on finance is £9479.
JA: Where is this? And when did the issue begin?
Customer: I bought the car in july of this year from a dealership in North London. A fault developed in late September. I contacted the dealership in early October to report the fault, but wasn't able to take it to them until November 11. The dealer told me they had repaired the car and I collected it on the 13 of November, but on the 15 of November the car completely broke down. Can I claim under section 75 on the credit card company, as well as the on the finance?
JA: What steps have you taken so far?
Customer: I have made a formal complaint to the dealership informing them that they had one chance to repair the car under the consumer rights act 2015 and as the car had broken down after they repaired the car I'm now exercising by consumer rights and require a refund or a replacement vehicle. also the dealership failed to provide a report on the repair work and checks done when I first took the car to them
JA: Anything else you want the Lawyer to know before I connect you?
Customer: I've have also made a formal complaint to the finance company as under the consumer rights act 2015 they are also responsible. I made a formal complaint to the finance company on 19th november

Hello, my name is ***** ***** I am a qualified lawyer happy to help you today.

Yes, you should claim your deposit from your credit card company. The dealer should give you a full refund and the finance should also be cancelled - they should do this because after 30 days of taking delivery, they only get one chance at repairing the vehicle and if that repair fails, you can legally reject the car and claim a full refund.

In terms of the law, which you have touched upon but I will outline it anyway, if you purchase a used vehicle from a dealer you have rights under the Consumer Rights Act 2015, which states that the vehicle has to be:

· of satisfactory quality in that it must not be faulty or damaged when received

· as described in that the vehicle must match any description given at the time of purchase

· fit for purpose in that it should be fit for the purpose intended

If the vehicle does not meet the above then you will be able to enforce your rights and sue for your money if the dealer refuses to give you the money back.

The rights against the seller are:

1. Reject the vehicle and request a refund which must be done within 30 days of purchase or delivery.

2. Repair or replacement and this can be done within the first 30 days or after, if that deadline has passed and a rejection is no longer possible. If a repair is not possible or has failed, the vehicle can still be rejected for a refund, or if you want to keep it, you can ask for a price reduction. If asking for a refund or a replacement, the current value of the vehicle will be used, taking into account any depreciation in value for usage by the buyer since purchase.

You need to contact the dealer and demand your money back. You should also contact your credit card provider (they are liable for the deposit only). If the dealer refuses then I would advise that you report them to Trading Standards (tel: 03454 040506) and commence legal proceedings via the money claim online site ( for your money back.

Before you do this however you should send them a 14 day letter before action to warn them of your intentions, to allow them to avoid litigation and resolve this dispute. I attach a template letter for you to use which will hopefully resolve the dispute.

I hope this helps - if you can please accept the answer and give me a 5 star rating (there should be a button at the top of your screen to do this), I can answer follow up Q&A's at no extra charge and Just Answer will credit me for helping you today.

Many thanks,


Customer: replied 7 months ago.
Many thanks for your response. I also wanted to know my rights against the finance company. As the £9,479 is on finance. Hire Purchase finance where I'll become the owner of the vehicle after 5 years which is the term of the hire purchase agreement

The finance company own the vehicle but the dealer is liable under the consumer law. You are the consumer and you have a right to get your money back (the £200 plus any finance payments you have made). So you need to reject the car and sue for your money back (from the dealer).

Hopefully I explained that properly? Let me know if I have or if you need more clarification.

JimLawyer and other Law Specialists are ready to help you
Customer: replied 7 months ago.
Ok, I thought that the Finance company and the dealer are jointly liable. I actually thought that the finance company had greater responsibility as they now own the car. Can I sue both and report both to the financial ombudsman service?
Customer: replied 7 months ago.
Hi Jim, please could you let me your thoughts on my last question
The finance company own a car which is defective and the dealer is the party at fault. You’d have the right to cancel the finance - the finance company may have to sue the dealer but like I say your loss is the £200 plus finance payment(s) made you date.
It’d be Trading Standards who would need to be contacted if the dealer doesn’t help. The number you need is 03454 040506.
If the finance company become difficult with you then you’d need to make a complaint to them and if that doesn’t resolve the matter, an escalation to the Financial Ombudsman Service (FOS).
I would speak to the finance company and tell them you are rejecting the car. They should be helpful as they will be aware of the consumer laws
Customer: replied 7 months ago.
When I contacted the finance company they told me that I can't cancel the finance, but that they will refund the finance payments I made from the date I first made the formal complaint to them till when the issue is resolved. Are they right to tell me this?
Customer: replied 7 months ago.
Also, they told me it can take up to 8 weeks for the issue/complaint to be resolved and I can't escalate to the ombudsman or trading standards till its 8 weeks or I get a final response from them

You can cancel the finance because of breach of contract (under the Consumer Rights Act 2015). If not then ask them for their final response letter and then report them to

That is true, you need their final response letter first which can take a few weeks.

I would speak to Trading Standards as soon as possible. Then arrange to return the car and stop the payments to the finance company - if they pursue then you can defend the claim against them.

Customer: replied 7 months ago.
The dealership came and recovered the car on 15 November the second time it broke down and have had it since then

OK, thanks in that case you send them the letter before action to demand the money back (£200 plus finance payments). Copy your letter to the finance company - tell the finance company the contract has been broken due to the faulty vehicle. And speak to Trading Standards first thing tomorrow morning

Customer: replied 7 months ago.
I've been without the car since 15 November and the finance company which is causing me a lot of inconvenience, but the finance company told me I can't cancel the payments, can't get a courtesy car, but have to wait till the issue is resolved or they give me final response
Customer: replied 7 months ago.
Ok, thanks. I'll speak to trading standards tomorrow. I wrote to the dealership last week Saturday and I copied the finance company. I gave the dealership 14 days to respond

No problem, ask the finance company why when there is a situation of breach of contract (with goods which they own), you are not being penalised by them?. Their attitude is completely wrong.

*now being penalised by them*