Everything You Need to Know About Buying a Car from a Dealer

Buying a vehicle with car finance from a dealer is a successful experience for the vast majority of motorists. That said, it’s important to know your rights as a consumer — just in case something goes wrong. To help you navigate the process, here are some handy tips and guidance.

Before you visit your preferred dealership, it’s important to have a handle on your legal rights. Most of those rights are provided to you via the Consumer Rights Act 2015, which states that:

● Cars must be exactly as they’re advertised

● Cars must be in a ‘satisfactory condition

● Cars must be fit for purpose

Of course, some might say that these legal requirements are subjective in nature. But in short, any car you purchase from a dealership should be exactly as its described in the listing, in good condition and roadworthy.

In addition to the Consumer Rights Act 2015, dealerships must abide by the Consumer Protection from Unfair Trading Regulations (2008), which state the following:

● Dealers must not sell aggressively or pressurise consumers into buying vehicles

● Dealers may not provide false information or withhold information about vehicles for sale

● Dealers must not make false statements about the availability or price of a vehicle in order to secure a quick sale.

Under the provisions laid out by the Consumer Rights Act 2015, you have the right to reject a car if it’s not fit for purpose, in an unsatisfactory condition or not as described in the initial ad or listing.

The law states that, should a car fall into one of these categories, the consumer has the right to reject the product as faulty. Moreover, the consumer is also legally entitled to a full refund within 30 days of purchase.

And this is where things become a little urgent. As soon as you realise there’s a problem with your vehicle, you should approach the dealer and request a full refund. It’s also a good idea to put that request in writing. That’s because you only have 30 days to activate your right to a no-quibble refund.

That said, you have a legal right to return a vehicle for up to six years after purchasing it (in Scotland, it’s five). However, you must be able to prove that the issue in question is a result of a fault that was present at the time of sale — and not just wear and tear.

If you have the funds available, buying a car from a dealer with cash can save you a lot of interest. However, before you do, just know that buying a car using a standard car loan gives you legal protection under Section 75 of the Consumer Credit Act and the Consumer Rights Act 2015.

Again, any vehicle bought with finance should be in a satisfactory condition, fit for purpose and as described in the initial advertisement. But in this case, the lender is responsible for issuing a refund — not the dealership.

In addition, both the dealer and the finance company will probably be liable for any refund if you bought the vehicle using a credit card.

If you pay a dealership for a new car using a debit card or cash, you won’t have protection under Section 75 of the Consumer Credit Act. However, there’s still a chance that your bank may offer you a refund under a voluntary scheme called ‘chargeback’.

If your debit card was issued by a leading provider such as Visa, Mastercard or American Express, you may have up to 120 days to claim a refund under the ‘chargeback’ scheme.

The only downside is the time it might take to receive the refund. Whereas a credit card company would probably issue the refund in just a few days, chargeback claims require the card company to successfully claim the refund before they can pass it on to you.

Buying a car from a dealership is not a risk-free experience. So if you can secure affordable motor finance with the help of an experienced broker, you’ll enjoy the peace of mind that comes from knowing your rights are fully protected under Section 75 of the Consumer Credit Act.