Buying a New Car: Your Rights

Besides a house, a new car is one of the most expensive purchases you'll ever make. It's a massive investment, and you want it to be perfect, given the amount it costs. You do have plenty of rights to make sure everything is fine, and cover you if things go wrong - but you also need to be careful.

Before You Buy

The best plan is to look for a reputable dealer - friends can offer good advice, or you can look for a trade association sign. If you want a list of registered dealers, contact the Retail Motor Industry Federation or the Scottish Motor Trade Association who will happily give you the names of their members.

Don't be afraid to haggle over price. Often you get the price knocked down, especially on some models. How far you haggle is up to you (and the salesman). Paying by cash might slice even more off the bill, but you can even haggle if you're buying on credit (especially if it's arranged through the dealer).

Never even consider buying a car unless you test drive it first - but make sure you have insurance coverage. Some dealers will even let you keep the car for up to 48 hours.

When you sit down to sign the contract, make sure you're getting the final, on-the road price. That means VAT, number plates, everything. Don't sign unless you understand everything in the contract, including interest changes. Be clear on any trade-in price. If there's anything you're not sure about, ask for an explanation, and get it in writing. Don't be afraid to say you want time to think. If you're not sure the deal's good, remember - you can always walk away.

Your Basic Rights

New cars come under the Sale of Goods Act. That means they must be "as described," "of satisfactory quality," and "fit for the purpose" - in this case, if you specify a specific need to the dealer, the car he sells you should be able to do that. If your car has a problem in the first six months, get the dealer to repair it (free of charge, of course) or replace it. Think twice before allowing a repair, since it could affect the resale value.

If Things Go Wrong

If there's a problem, take the car back to the dealer and tell him what you want him to do about it. You can even reject it, (hand over the keys and give your reasons in writing), requesting a refund. Keep a copy of your letter.

Things become somewhat trickier if you've financed the deal and you want to reject the car. The problem is that the car isn't actually yours - it belongs to the finance company until you've paid for it in full. So you have to give them your rejection reasons, and then let them deal with it on you behalf.

If the dealer refuses your rejection of the car, you'll have to speak to the manufacturer; they may be able to negotiate a solution.

The next thing you can do is contact the Society of Motor Manufacturers and Traders. It will act as an arbiter, (although it has no legal power, its Code of Practice is approved by the Office of Fair Trading (OFT)). Finally, you can go Trading Standards and take legal advice (both the RAC and the AA offer legal advice to their members). But if you go to court, you'll need a solicitor; new cars are too expensive to go on the small claims track. However, if you win, your costs will be covered and you might be able to claim compensation.