You paid thousands for a car. Within weeks — or even days — it broke down, had hidden faults, or simply wasn't what the dealer described. The dealer is now stalling, blaming you, or refusing to engage entirely.
This guide explains exactly what the Consumer Rights Act 2015 gives you, when you can demand a full refund, what happens if you're past 30 days, how Section 75 works for finance purchases, and how to take a dealer to the county court if they won't play ball.
Your key right: Under the Consumer Rights Act 2015, any car sold by a dealer must be of satisfactory quality, fit for purpose, and as described. A dealer cannot contract out of these rights, regardless of what any paperwork says.
Your Rights Under the Consumer Rights Act 2015
When you buy a car from a dealer (any business selling cars, not a private individual), the Consumer Rights Act 2015 implies three terms into the contract automatically:
1. Satisfactory Quality (Section 9)
The car must meet the standard a reasonable person would regard as acceptable, taking into account its age, price, and any description given. For a used car, some wear and tear is expected — but hidden mechanical faults, undisclosed accident damage, safety defects, and premature failures are not.
Satisfactory quality covers: freedom from minor defects, acceptable appearance and finish, safety, durability, and fitness for all the purposes goods of that type are commonly supplied for. If your car fails any of these within a reasonable period after purchase, you have a claim.
2. Fit for Purpose (Section 10)
The car must be fit for its normal purpose — driving on public roads. If you told the dealer you needed it for towing, daily motorway commuting, or any other specific purpose and they confirmed it was suitable, it must meet that requirement too.
3. As Described (Section 11)
The car must match any description in the advert, the forecourt display, or the sales contract. Mileage, service history, number of previous owners, MOT status, optional extras, and accident history — all must be accurate. A description includes photographs.
Dealer Refusing to Help?
JustClaim generates a letter before action and N1 court documents to force a resolution. Most dealers settle before a hearing.
The 30-Day Short-Term Right to Reject
In the first 30 days after buying a faulty car from a dealer, you have an absolute right to reject it and get a full refund. You do not have to accept a repair first. You do not have to prove the fault existed at the time of sale — the law presumes it did.
- The 30 days runs from the date the car was delivered to you (not the contract date)
- You must tell the dealer you are exercising the short-term right to reject — in writing is best
- The dealer must refund the full purchase price within 14 days of getting the car back
- No deduction for usage during the 30-day period is allowed
- If the car was not available immediately and delivery took time, the clock starts on delivery
Watch out: If a dealer offers a repair and you accept it during the 30-day window, you may lose your short-term right to reject. Do not agree to a repair unless you are genuinely comfortable giving up the refund right.
After 30 Days: Your Ongoing Rights
The 30-day window closing does not end your rights — it changes them. After 30 days the dealer gets one attempt to repair or replace the car before you can escalate.
The 6-Month Presumption (Months 1–6)
If a fault appears within six months of purchase, the law presumes it existed at the time of sale. The burden is on the dealer to prove otherwise — not on you to prove the car was already faulty when you drove it off the forecourt. The dealer gets one repair attempt. If the repair:
- Fails to fix the fault
- Takes an unreasonably long time (what's reasonable depends on the fault, but weeks is generally too long)
- Causes significant inconvenience
…you can then demand a price reduction (partial refund) or exercise the final right to reject for a full refund minus a deduction for the use you've had of the car.
After 6 Months
Between 6 months and 6 years (5 years in Scotland), you still have rights under the Consumer Rights Act — but the presumption reverses. You will need to prove the fault existed at the time of purchase. An independent engineer's report (typically £100–£250 from the AA, RAC, or an independent inspector) is your key piece of evidence.
Time limit: You have 6 years from the date of purchase to bring a claim in the county court (5 years in Scotland). Act as early as possible while evidence is fresh and the dealer is still trading.
Common Faulty Car Scenarios
Hidden Mechanical Faults
Engine problems, gearbox failures, clutch defects, timing chain issues, DPF blockages, and electrical faults that appear shortly after purchase — and were present but concealed at the time of sale. Your claim: Cost of repair, or full rejection if within 30 days. Repair costs plus consequential losses (recovery, alternative transport) if after 30 days.
Clocked Mileage
Odometer tampering to show lower mileage than the true figure is a criminal offence under the Road Traffic Act as well as a breach of the Consumer Rights Act. Your claim: The difference in value between what you paid and what the car is actually worth at real mileage, or full rejection. Consider reporting to Trading Standards as well.
Undisclosed Accident Damage
Structural accident damage affects safety and significantly reduces resale value. HPI checks and inspection reports can confirm this. If the dealer knew or should have known, it's a breach of the "as described" term. Your claim: Diminution in value, cost of proper repair, or full rejection.
Outstanding Finance (Cherished Number / "On Tick")
If the car has undischarged finance on it, the finance company retains legal ownership. They can repossess the car from you even though you bought it innocently. The dealer must settle any outstanding finance before selling. Your claim: Full refund plus any consequential losses if the car is repossessed.
Car Not As Described
Wrong number of previous owners, fabricated service history, missing announced features (sat-nav, towbar, sunroof), incorrect engine size. Your claim: Price reduction reflecting the actual vs described value, or rejection if the difference is material.
Write-Off Not Disclosed
Category S or N write-offs can be legally sold, but must be disclosed. Category A and B write-offs cannot legally be back on the road. Failure to disclose a write-off is a breach of the as-described term and potentially fraudulent misrepresentation. Your claim: Full rejection; consider a police report for Cat A/B.
Know Exactly What You Can Claim
JustClaim calculates your claim amount including the car value, repair costs, alternative transport costs, and statutory interest at 8%. Take the dealer to court in minutes.
Buying on Finance? You Have an Extra Claim
Section 75 of the Consumer Credit Act 1974
If you paid for part or all of the car using a credit card, or took out a personal loan from a lender (not the dealer directly), Section 75 makes the finance provider jointly and severally liable with the dealer for any breach of contract or misrepresentation. This means you can claim directly against the finance company — even if the dealer has closed down.
Section 75 applies to purchases between £100 and £30,000 where a credit agreement is used. It only covers a third-party lender — not hire purchase or PCP finance arranged by the dealer itself.
Hire Purchase and PCP
With hire purchase (HP) and personal contract purchase (PCP), the finance company actually owns the car while you make payments. Under the Consumer Rights Act, your contract is with the finance company, not the dealer. You make your claim against the finance company for breach of the implied terms. They are your counterparty.
Voluntary Termination
Under Section 99 of the Consumer Credit Act, you can voluntarily terminate a hire purchase or PCP agreement once you have paid 50% of the total amount payable. This is separate from a fault claim — it's a termination right, not a refund right — but worth knowing if you simply want to hand the car back.
Private Seller vs. Dealer: A Critical Distinction
The Consumer Rights Act 2015 only applies when you buy from a trader acting in the course of business. Private sales between individuals are not covered. In a private sale, the rule is roughly "buyer beware" — you rely on contract and misrepresentation law rather than statutory implied terms.
However, many "private" sellers on Facebook Marketplace, eBay Motors, and Autotrader are actually dealers posing as private individuals to avoid consumer law obligations. Evidence that gives this away: multiple similar adverts at the same address, cars registered to a company address, VAT numbers visible on documentation, or a pattern of sales on their profile. If you can show the seller was actually trading, consumer law applies in full.
Step-by-Step: How to Claim Against a Car Dealer
Document the faults
Photograph every fault, get a written diagnosis from a garage, keep all correspondence with the dealer. Save adverts, screenshots, and emails.
Exercise your right to reject
Within 30 days: write to the dealer stating you are exercising the short-term right to reject under Section 20 of the Consumer Rights Act. Request a full refund.
Letter before action
If the dealer refuses or ignores you, send a formal letter before action. Give 14 days to respond. JustClaim generates this automatically.
File an N1 claim form
File in the county court. Claims up to £10,000 are on the small claims track — no solicitor needed, fees refunded if you win.
Independent Inspection Report
For claims after 6 months, or where the dealer disputes that the fault existed at sale, an independent engineer's report is important evidence. The RAC, AA Inspections, and many independent engineers offer pre-purchase and post-purchase inspection reports from around £100–£250. The cost is recoverable as part of your claim if you win.
Small Claims Court Fees for Car Dealer Claims
Court fees are charged on the amount you claim. All fees are recovered from the defendant if you win:
| Claim amount | Court fee |
|---|---|
| Up to £300 | £35 |
| £300.01 – £500 | £50 |
| £500.01 – £1,000 | £70 |
| £1,000.01 – £1,500 | £80 |
| £1,500.01 – £3,000 | £115 |
| £3,000.01 – £5,000 | £205 |
| £5,000.01 – £10,000 | £455 |
94% of small claims result in default judgment — meaning the defendant simply doesn't respond and you win automatically. Most car dealers settle after receiving a letter before action rather than face a court judgment on their record.
What Can You Include in Your Claim?
- Purchase price — or the relevant proportion for a price reduction claim
- Repair costs — quotes or invoices from an independent garage
- Alternative transport costs — hire car, public transport, taxis while the car is off the road
- Inspection and report fees — AA/RAC inspection, engineer's report
- Recovery/breakdown costs — if the car broke down after purchase
- Interest at 8% per year — from the date of the breach to the date of judgment
What If the Dealer Has Closed Down?
If the dealer has gone into liquidation or simply disappeared, you are not without options:
- Section 75 claim against your credit card or finance provider if the purchase involved credit
- Chargeback from your debit card provider (voluntary scheme, 120-day limit, but often successful)
- Motor Ombudsman if the dealer was a voluntary member
- Trading Standards for criminal offences (clocking, fraud)
- File a county court claim against the company — if the company is still registered at Companies House even if trading has stopped, you can get a judgment and then apply to enforce it
Ready to Take Action?
JustClaim walks you through the exact steps for your situation — 30-day rejection, post-30-day repair rights, or finance claim. Generates your letter before action and N1 form automatically.
Frequently Asked Questions
Can I sue a car dealer for selling me a faulty car?
Yes. Under the Consumer Rights Act 2015, any car sold by a dealer must be of satisfactory quality, fit for purpose, and as described. If it isn't, you can reject it for a full refund within 30 days, or claim repair, replacement, or price reduction after that. If the dealer refuses, you take them to the county court.
How long do I have to reject a faulty car?
You have 30 days from delivery to exercise the short-term right to reject and receive a full refund, with no deduction for use. After 30 days, you retain rights for up to 6 years but must give the dealer one chance to repair first, and may receive a deduction for use if you ultimately reject.
Does the Consumer Rights Act cover used cars?
Yes. Both new and used cars are covered when bought from a dealer. The standard for "satisfactory quality" takes the age and price into account — an older car at lower price is not expected to be perfect — but hidden faults and undisclosed defects are never acceptable.
Can I claim for a faulty car bought on finance?
Yes, and you may have two claims: one against the dealer and one against the finance provider. Section 75 of the Consumer Credit Act 1974 makes a credit card company or loan provider jointly liable with the dealer. With HP or PCP, your contract is with the finance company directly.
What if the dealer offers a repair but I want a refund?
Within 30 days, you can insist on a refund and refuse the repair. After 30 days, the dealer is entitled to one repair attempt. Only if the repair fails, takes too long, or causes significant inconvenience can you then escalate to a price reduction or final rejection.
How much does small claims court cost for a car claim?
Court fees range from £35 for claims under £300 to £455 for claims between £5,000 and £10,000. These are fully recovered from the dealer if you win. There are no solicitor costs on the small claims track.