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Joshua, Lawyer
Category: Law
Satisfied Customers: 30008
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I took out finance on a car (through car dealership) in

Customer Question

Hi I took out finance on a car (through car dealership) in March 2021. About 5 weeks ago they had to take it back.i received a call this morning from them advising car needs a new engine and its too expensive for them to fix. I am under warrant until March 2022. I am still making my monthly payments to finance company
JA: Have you contacted the seller or manufacturer?
Customer: Yes the car is with the dealership who I bought it off
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: I dont think so, thanks
Submitted: 14 days ago.
Category: Law
Expert:  Joshua replied 14 days ago.

Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.

I am very sorry to read of the above and I imagine how frustrating it must be. I will certainly try to clarify the position for you.

  1. may I clarify who contacted you to advise they had to take the car back please? Was this the dealer?
  2. if so, was this in response to a complaint you made in respect to a fault?
Customer: replied 14 days ago.
My car had to be towed back to the dealership approximately 5 weeks ago and has been with them ever since. I received a phone call from them this morning and they advised the whole engine needs to be replaced
Expert:  Joshua replied 14 days ago.

thank you. May I confirm if you have contacted the finance company to date?

Customer: replied 14 days ago.
as I said they phoned me this morninh
Expert:  Joshua replied 14 days ago.

forgive me - I understood that was the dealer that telephoned this morning? I'm wondering if you have contacted the finance company rather than the dealer? If so, have you agreed or discussed anything with regards ***** ***** finance in view of the above?

Customer: replied 14 days ago.
No I havent
Expert:  Joshua replied 14 days ago.

thank you. Section 75 of the consumer credit act puts the finance company in the same shoes as the dealer contractually in respect of liability under the contract for the purchase of the vehicle. What this means is that effectively you can treat the finance company as the same entity as the dealer for the purposes of the vehicle purchase contract.

Accordingly, this means that if the car does not conform to the specification agreed in that it is faulty, and the dealer has accepted that this is the case and accepted a return of the vehicle, this means the contract in respect of the vehicle is breached on their part, albeit you have resolve the matter amicably between you, and as a consequence, because of the above, the contract for the finance is also in breach because the finance company has failed to provide you with a functioning vehicle by virtue of section 75 consumer credit act, they are jointly liable alongside the dealer.

Accordingly, you can contact the finance company and explain what has happened. Hopefully you will have to correspondence as between you and the dealer showing that they have accepted that the vehicle is faulty and cannot be repaired and has accepted a return of the vehicle-if not, it would be sensible to obtain such documentation from the dealer so you can show what has happened. As a consequence of this, you can ask the finance company to cancel the finance agreement by virtue of section 75 consumer credit act and refund payments in relation to the finance other than a limited sum to account for the use you have had out of the vehicle before it became faulty.

In the unlikely event that they refuse to cooperate, then you can raise a formal complaint and on the earlier of therefore response to that complaint or eight weeks, escalating a complaint to the financial ombudsman for independent determination:

Expert:  Joshua replied 14 days ago.

I hope the above is of some assistance but if you have any further questions, please revert to me.

Expert:  Joshua replied 13 days ago.

I trust the above was of assistance and that you do not have any follow up questions for now. If there is anything else I can help with please reply back to me though.

Expert:  Joshua replied 11 days ago.

Thank you again for visiting JustAnswer and see you again in the future I hope.