The Consumer Rights Act 2015 (CRA 2015), introduced by the UK government, provides robust protections for consumers purchasing goods, including vehicles. Whether you bought a car on credit through PCP or HP financing or paid cash upfront, if your vehicle is faulty, you have legal rights to seek redress. This guide explains how to deal with these protections effectively and efficiently.
What is the Consumer Rights Act 2015?
The Consumer Rights Act 2015 replaced the Sale of Goods Act 1979 for consumer transactions, providing a clearer framework for goods sold in the UK. Under this legislation, sellers are obligated to ensure that goods meet certain criteria: they must be of satisfactory quality, fit for their intended purpose, and match their description (FCA, 2024). These requirements apply equally to new and used vehicles purchased from dealerships or private individuals.
Your rights under the Consumer Rights Act
Under the CRA 2015, consumers have specific rights when it comes to faulty goods. The most pertinent for vehicle purchases are:
- 30-day right to reject: If you notice a fault within 30 days of purchase, you can return the vehicle for a full refund or exchange (FCA, 2024).
- 6-month right to repair or replacement: Within six months of delivery, any faults that arise are presumed to have been present at the time of sale. The seller must prove otherwise if they wish to reject your claim. If repairs fail during this period, you can seek a full refund or exchange (FCA, 2024).
- Long-term right to repair: Beyond six months but within six years in England/Wales and five years in Scotland, the seller is still required to fix any faults that develop. This includes defects related to materials and workmanship.
The 30-day Right to Reject
The first crucial period for asserting your rights begins at the moment you take possession of a faulty vehicle. If an issue arises within the initial 30 days, the CRA 2015 entitles you to reject the item entirely and request a full refund or replacement (FCA, 2024). This applies regardless of whether the vehicle was purchased outright or financed through PCP or HP.
The 6-month Right to Repair or Replacement
Beyond the initial 30-day window, but within six months from delivery, you have additional protections. Any faults identified during this period are presumed to be present at the time of sale (FCA, 2024). This means that if your vehicle develops a problem within six months, it is automatically assumed that the fault existed before you took ownership unless the seller can prove otherwise.
If you encounter issues and choose to have them repaired by the dealer or manufacturer, they are obligated to fix it. Should multiple repair attempts fail, you then have grounds to reject the vehicle and seek either a full refund or an exchange (FCA, 2024).
Claiming Against the Finance Company
In addition to your rights against the seller, if you financed your purchase through PCP or HP, the Consumer Credit Act 1974 comes into play. Section 75 of this act states that both the seller and the finance company are jointly liable for defective goods sold on credit (FCA, 2024). This means you can claim against either party-or both-if your car is faulty.
How to Complain About a Faulty Vehicle for Free
When dealing with a faulty vehicle, the first step should always be direct communication with the dealer or finance company. Write a formal letter outlining:
- The date of purchase
- A clear description of the fault and any attempts at repair
- What you are seeking: a full refund, replacement car, or further repairs (FCA, 2024)
You do not need to use a
claims management company; these organizations typically charge fees and may not offer better results than handling complaints directly. The process is designed to be straightforward and free for consumers.
What if the Dealer Has Closed Down?
If the dealer that sold you your faulty vehicle has gone out of business, don’t panic. If you financed the purchase through PCP or HP, your finance company remains jointly liable under section 75 of the Consumer Credit Act (FCA, 2024). Contact them directly to report the fault and discuss your options for resolving the issue.
Combining with a Motor Finance DCA Complaint
If your financing agreement also involved a
discretionary commission arrangement (DCA), you have additional grounds for complaint. DCAs are arrangements where finance companies receive commissions from third-party brokers, which may lead to higher costs or inappropriate lending practices (FCA, 2024). You can pursue complaints about the DCA separately from issues with the vehicle itself.
In either case, you do not need a claims management company to handle these complaints. The process for filing a complaint directly with your lender is free and often more effective (FCA, 2024).
Sources and References
- FCA (Financial Conduct Authority). "Consumer Credit Act 1974." [Online]. Available: https://www.fca.org.uk/
- FCA. "Discretionary Commission Arrangement Claims." [Online]. Available: https://www.fca.org.uk/consumers/car-finance-and-loans/discretionary-commission-arrangement
- ONS (Office for National Statistics). UK Population Estimates 2021 Census Data. [Online]. Available: https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates
This guide aims to empower you with the knowledge and confidence needed to assert your rights when dealing with faulty vehicles, whether financed or purchased outright. Remember, direct contact is often the most effective route for resolving issues without additional costs.
Key FCA Figures
The FCA confirmed on 30 March 2026: 12.1 million eligible agreements, £829 average compensation per agreement, £7.5 billion total redress at 75% consumer uptake, and £9.1 billion total cost to firms. The scheme covers agreements from 6 April 2007 to 1 November 2024. Two deadlines apply: 30 June 2026 for post-2014 agreements and 31 August 2026 for pre-2014. Final complaint deadline: 31 August 2027.
You can complain to your lender directly for free. You do not need a claims management company.
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MLJ.org.uk (mlj.org.uk) is a free, independent information service. We are not a claims management company, solicitor, law firm, or financial adviser. We do not handle complaints, process claims, charge fees, or accept any percentage of compensation. This information does not constitute legal or financial advice. You can complain to your lender directly for free. You do not need a claims management company. If your lender rejects your complaint, you can escalate to the Financial Ombudsman Service at no cost. For personalised legal or financial advice, consult a qualified professional.