Unfortunately, this is not an uncommon problem. Investing in a new or used car can be both a daunting and costly endeavour. Breakdowns do of course happen but, you would hope, not shortly after buying the car.
The below is intended to be a short guide in respect of what protection there is for those purchasers who suffer a problem or fault with their car after collecting or taking delivery of it.
For the purposes of this article, let’s assume that the vehicle was purchased by an individual (the ‘consumer’) for private use (not related to any business) from a dealership (the ‘trader’). If he or she was to buy if from a private seller or at auction then their legal protection would be slightly different and such a scenario is beyond the scope of this article.
In the event that the consumer finds that vehicle to be faulty, the first course of action should always be to consider what was actually agreed and whether any manufacturer’s warranty was given which would protect the consumer. The consumer must also consider whether the defect was apparent on inspection of the vehicle prior to purchase or whether an opportunity to inspect it properly was given at all. If a defect does exist, had account been given to it in the contractual documentation itself, such as a reference to, or a description of, it? If the consumer had knowledge of the defect and continued with the purchase then they shall have a difficult argument to suggest they had not accepted the defect.
The manner in which the vehicle is sold (such as if misleading or incomplete information is given) is also important from a consumer protection point of view, but I have not outlined it in great detail here. From a consumer point of view it would always be advisable to make a note of any assurances the trader made verbally, together with copies of the relevant marketing material, which were persuasive in reaching the decision to buy the vehicle.
Having considered these issues, and assuming the express terms of the contract afford the consumer no or little protection, it will be a question of whether statute protects the consumer. The consumer may find protection in the Consumer Rights Act 2015 (the ‘2015 Act’) which shall apply to purchases from 1 October 2015. Should the contract be formed prior to that a different statutory regime applies.
The 2015 Act gives consumers protection against a wide array of issues including being sold goods that are not of satisfactory quality, fit for purpose and which do not match any description given.
A Right to Reject Within 30 Days
If the vehicle proves to be faulty (and the contract does not provide an express term relating to the fault at all) the 2015 Act provides that the contract for sale between the consumer and trader will include an implied term that the vehicle shall be of satisfactory quality, fit for purpose and as described.
If the vehicle is defective, the consumer shall have a right to reject the vehicle in return for a full refund in the first 30 days after taking ownership and delivery of the vehicle. This is known as the consumer’s ‘short-term right to reject’. The right must be exercised through a clear indication to the dealership that the consumer is rejecting the vehicle and treating the contract as at an end. In practice I would always advise to put the rejection in writing.
If the consumer is so minded to request or agree to the repair or replacement of the vehicle, the 30-day time stops running. If the trader then returns the vehicle and it still is not working satisfactorily or as it should, the time limit for the short term right to reject is then either seven days after the consumer received the vehicle back in response to the request or agreement to repair it or, if later, the original time limit for exercising that right is extended by the ‘waiting period’, being the day the consumer requested or agreed to the repair or replacement to the day the trader returns the vehicle in response to the request.
After the First 30 days
If the fault is discovered within the first six months of ownership then there is a statutory right, after the first 30 days, but within the first six months, of ownership of repair or replacement. During this window of time it is presumed that the fault existed at the point of purchase unless the Trader can prove otherwise. If this cannot be demonstrated then the trader, shall have one opportunity to repair or replace the faulty vehicle (subject to any other agreement). If they are either unable or unwilling to do so in a reasonable time, the consumer shall be entitled to a refund which shall take into account any use of the vehicle since it was purchased.
The consumer should take note that the repair must be carried out in a reasonable time without significant inconvenience to the consumer and the trader must bear any costs in respect of the repair.
After the First Six Months
If, however, the fault is detected after the first six months then the presumption will be that the fault did not exist at the point of purchase and it will be for the consumer to prove it did if he or she wants to pursue a claim for repair or replacement. This can be incredibly difficult depending upon the fault so the sooner issues are investigated and made known to the trader the better.
Naturally at all times the manufacturer’s warranty, if given, should be considered as this may provide for certain issues to be dealt with.