Rejecting a Faulty Car Bought on Finance

You collected the car on Friday. By Tuesday the gearbox is whining, a warning light is on, and the dealer isn't returning your calls. 😬

Here's the good news: if you bought that car on finance, you often have more protection than someone who paid cash — not less. Most people don't realise it.

Let's walk through exactly where you stand.

The car must be of satisfactory quality

Under the Consumer Rights Act 2015, any car sold by a trader must be:

• Of satisfactory quality — taking account of age, mileage and price
• Fit for purpose — it does what a car is supposed to do
• As described — the advert, the spec, the service history all match reality

That third one catches out more people than you'd think. If the listing said "full service history" and two stamps are missing, that's a breach of the Act — even if the car drives perfectly.

Important: satisfactory quality is judged relative to what you bought. A twelve-year-old car with 120,000 miles on it is allowed to have worn brakes and a bit of rattle. A three-year-old car with 20,000 miles is not allowed to need a clutch.

Your 30-day short-term right to reject

This is the strongest right you have, and it has a clock on it. ⏰

For the first 30 days after taking delivery, if the car is faulty you can reject it outright and get a full refund. You don't have to give the dealer a chance to repair it first. You don't have to accept a courtesy car and a promise.

The 30 days pauses while the car is with the dealer being inspected or repaired, so time spent off the road doesn't count against you.

Act quickly and put it in writing. A phone call is easy to deny later. An email timestamps your rejection.

After 30 days — repair, then reject

Between 30 days and six months, the dealer gets one attempt to repair or replace the car.

If that single repair fails — or they refuse to do it, or take an unreasonable amount of time — you can then reject the car. At that point you're entitled to a refund, though the dealer may deduct a reasonable amount for the use you've had.

There's a very useful rule in that six-month window: any fault that appears is presumed to have been present at the point of sale. The burden is on the dealer to prove otherwise, not on you to prove it was already broken.

After six months, that flips — you'd need evidence, usually an independent inspection report, showing the fault was there from the start. 🔧

Why finance changes the picture — and improves it

This is the part that matters most, and the part most buyers miss.

When you buy on Hire Purchase or PCP, you did not legally buy the car from the dealer. The finance company bought it and supplied it to you. That makes the lender your legal supplier.

So your claim goes to the finance company, not just the garage. And a finance company with a compliance department and a reputation to protect is a very different opponent to a small dealer who has stopped answering the phone.

There's a second layer too. Under Section 75 of the Consumer Credit Act 1974, where credit funded the purchase, the lender is jointly liable with the dealer for misrepresentation or breach of contract. Section 56 makes the dealer the lender's agent — meaning what the salesperson promised you is the lender's problem as well.

Practically, that means: complain to the finance company in writing. Reference the Consumer Rights Act 2015, state clearly that you are rejecting the vehicle, and set out the fault and the dates.

What if they say no?

If the lender rejects your complaint or goes quiet for eight weeks, you can escalate free of charge to the Financial Ombudsman Service. Their decisions are binding on the firm, and it costs you nothing.

Keep everything: the advert, the order form, the finance agreement, every email, dated photos, and any independent inspection or diagnostic report. Evidence is what wins these cases. 📋

Keep paying while you dispute

One piece of practical advice that feels wrong but matters: keep making your monthly payments while the complaint is running, unless the lender has agreed in writing that you can pause.

Missed payments land on your credit file as arrears, and unwinding them later is far harder than reclaiming the money if you win. Don't let a faulty car turn into a damaged credit record.

A quick word before you buy

Most of this is avoidable. Buy from an established dealer, get an independent inspection on anything expensive, run an HPI check for outstanding finance or write-off markers, and read the advert carefully so you can prove later what was promised.

At We Finance Your Asset we work with reputable dealers and lenders across Reading, Berkshire and the rest of the UK, and we'll always talk you through the agreement properly before you sign — including what happens if something goes wrong. 🚗

Know your rights, put things in writing, and don't let anyone tell you that finance makes you a weaker customer. It usually makes you a stronger one.