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Buying a New Car: Your Rights

By: Abigail Taylor - Updated: 12 Jan 2024 | comments*Discuss
 
Consumer Rights New Car Dealer Rac Aa

Besides a house, a new car is one of the most expensive purchases you'll ever make. It's a huge investment, and you want it to be perfect, given the amount it costs. The law gives you certain rights when purchasing a new car, and protection if something goes wrong:

Before You Buy

For the best chance of making sure that everything goes smoothly, look for a reputable dealer. Often family and friends can offer advice on where they have purchased a vehicle, or you can look for a trade association sign at a local dealership. 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). You might get money knocked off if you part exchange, but you might get more if you sell your current car separately, so price up each option to find out what is best for you.

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 is good, you can always walk away.

Some key questions to ask about your contract are:

  • How much do I have to pay now upfront?
  • How much do I have to pay monthly?
  • Does that include a maintenance and servicing plan?
  • What "extras" are included (eg electric windows / mp3 connector / metallic paint)?
  • At the end of the contract, will the car be mine? If not, are there any conditions on its return (eg max number of miles)?

Your Basic Rights

New cars are covered by The Consumer Rights Act 2015 (which replaced The Sale of Goods Act 1979). That means they must be "as described", "of satisfactory quality", and "fit for the purpose".

The car should therefore:

  • Be in full working order and not damaged when purchased.
  • Meet any purpose specifically explained to the retailer and agreed before purchase (eg good suspension for going up and down country roads).
  • Match the description given at the time of purchase.

    If Things Go Wrong

    The Consumer Rights Act 2015 put in place a tiered system to remedy problems with purchased products. Any claims must initially be made against the retailer rather than the manufacturer. What you can claim will depend upon how much time has passed since you purchased the car:

    0-30 days since purchase

    "I went to collect my brand new car but on inspection the paint work was scratched. I pointed this out to the dealer and walked away without the car. They wanted to polish the whole car at the body shop but I told them I did not want the car anymore. Not sure where I stand as I never drove it away and pointed the errors out right away ."

    If the car is unfit for purpose, faulty, or not as described, you have the right to return it and receive a full refund within 30 days of the date of purchase. Also if you ordered a car for delivery and have not received it within 30 days of the date of purchase (or by any later date agreed), you have the right to cancel your order and receive a full refund.

    30 days to 6 months since purchase

    If a fault is discovered within the first 6 months from delivery, it is presumed to have been there from the time of delivery. It is for the retailer (car dealer) to prove that this was not the case.

    If it has been over 30 days since you purchased the car, you will likely have to allow the retailer the opportunity to try to repair it if any issues arise (replacing the car being disproportionate to the cost of most repairs).

    "My husband bought a brand new car. Less than 5 months later it was leaking in on the front passenger foot well. We returned it to the dealer who had it for approx 4 weeks, they said they had replaced the seals and we took it home. A few weeks later it was leaking in the back passenger foot well. It went back to the dealer who said that they had replaced the back seals. Another month on and the front foot well is full of water again. Can we refuse for the car to be fixed again and ask for a refund or replacement?"

    If the retailer can't repair the car, or have tried to repair it and the fault still exists, you will be entitled to return the product and receive a refund. However a reasonable deduction may be made by the retailer to reflect your use of the vehicle in the preceding months.

    Over 6 months since purchase

    "I bought a new Honda HR-V and after only 600 miles on the clock, when parked on a incline, I got out of the vehicle after applying electronic handbrake. After waking away for about 20 - 30 meters, the car started rolling away and crashed into another car causing damage to both cars. Honda have said no fault was found after a couple of days investigation. I have no confidence in the car anymore. What are my options?"

    If it is more than 6 months since you purchased the car, you must prove that the product was faulty at the time of purchase. You would likely need an expert mechanic or engineer's report to prove this.

    "I purchased a new MG3.It has leaked through the driver's window since new and the acceleration is rubbish. The garage have had the vehicle several times for repair and now do not respond to my telephone calls to rectify the problems I have. Do I have any recourse with them please?"

    If you have difficulty agreeing a solution with the retailer, you can:

    1. Contact the Society of Motor Manufacturers and Traders. It will, with both parties agreement, act as an arbitrator and decide the dispute.
    2. Refer the matter to Trading Standards and take legal advice (both the RAC and the AA offer legal advice to their members). Note that if you go to court, you'll need a solicitor which can be costly, though often if you win, your costs will also be recoverable from the other side.

    The new Consumer Rights Act 2015 has been designed to simplify the position and help those purchasing products to hold retailers to account. However as you will have seen above, you have far greater rights straight after purchase than several months later, so it is important that you fully check over your car immediately after delivery / collection and notify the retailer of any issues as soon as possible.

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    North86 - 11-Oct-18 @ 10:59 PM
    BA - Your Question:
    I purchased a new Mercedes taking delivery in March 2018. The car was delivered to my home address, I was shown round the car, from the visual walk around all seemed well (but I did not get down on the floor and inspect the underside of the car) I signed the delivered note.Now 4 months later I received a letter from a solicitor seeking insurance details for the vehicle, as its was involved in an accident the day prior to the cars delivery to me. After seeking details of the accident, I have inspected the underside of the car in the area of the suggested impact and find evidence of damage on the underside of the rear of the car consistent with the alleged accident.I am less them impressed that I am now fielding solicitors letters and letters from the Motor Insurers Bureau seeking to identify the driver and insurers at the time of the accident. More importantly I am concerned that I have been delivered a brand new £50k car that has been damaged.The dealership claims not to have been made aware of any accident, as they use a 3rd party delivery agent and have not been advised of an incident. The car is on a PCP deal with Mercedes Financial Service.I feel conned that I have been delivered a brand new luxury car, that has been damaged and they only way I find this out is through a solicitors letter seeking to claim for damaged / injuries to a 3rd party.What are my option, can I reject / return the car?

    Our Response:
    We'd advise contacting a solicitor to deal with this. If they date of the accident was definitely before you took delivery of the vehicle, the dealer or the transportation company will know about it. A responsible dealer will investigate this on your behalf, they have, after all, sold you a vehicle that is not in a condition you would have expected from a new car. So:
    (1)Go back to the dealer, ask them for details of the company that delivered the vehicle. (2)Respond to the solicitor and MIB and let them know that you actually took delivery of the vehicle the day after the accident, give them details of the dealer from whom you purchased the vehicle (3) Talk to Mercedes Financial Services and tell them you want to return the vehicle on the basis that it is faulty/not as described (4) Ask a solicitor for advice on what you can do in terms of compensation etc
    ConsumerRightsExpert - 6-Aug-18 @ 11:09 AM
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    BA - 3-Aug-18 @ 2:06 PM
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    Jane - 29-Jul-18 @ 3:59 PM
    Mananan - Your Question:
    My father-in-law purchased a new car recently, he paid a deposit plus had a £2,000 scrappage exchange and paid the remainder in full which was almost £11,000. The car was delivered to his home whilst he was on holiday, but unfortunately he passed away before coming home. The car is obviously not needed, or fit for the purpose it was purchased for and yet the dealership have not offered to take it back, but have offered only £8,000 ti buy it back. What are our rights?

    Our Response:
    The retailer is not obliged to take the car back in these circumstances. It might be easier to sell it as part of your father in law's estate.
    ConsumerRightsExpert - 26-Jun-18 @ 12:37 PM
    My father-in-law purchased a new car recently, he paid a deposit plus had a £2,000 scrappage exchange and paid the remainder in full which was almost £11,000. The car was delivered to his home whilst he was on holiday, but unfortunately he passed away before coming home. The car is obviously not needed, or fit for the purpose it was purchased for and yet the dealership have not offered to take it back, but have offered only £8,000 ti buy it back. What are our rights?
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    Bobby - 30-Mar-18 @ 4:14 PM
    monjo - Your Question:
    I bought a new Honda CRV in Jan 2017. During my discussions with the Honda Salesman I made it clear that I was retired, 90% of my driving was in town and that I drove less than 5000 miles a year.I bought a diesel engined vehicle in the belief that it was more efficient and cost less in road tax.I now have Diesel Particulate Filter problems which persist despite repeated "corrective" actions by the garage.I would like to know what my consumer protection rights are inas much that I should have been sold a petrol car rather than diesel because of my driving profile.

    Our Response:
    If you think you were misled by the saleperson, you might be able to claim compensation or a partial refund. As it's over 12 months since you bought the vehicle and you've had use of the vehicle for that period it's very unlikely you will get a full refund etc. Write the dealer andexplain what you told the saleperson about your requirements and the problem that is now present - then say that you think the person who sold you the vehicle misled you and that you feel you should be entitled to a partial refund under the Consumer Protection from Unfair Trading Regulations 2008. You may need to seek advice from a legal professional or Citizens' Advice to help with this. Bear in mind that there is always an element of Caveat Emptor (buyer beware) when making a purchase, so you are expected to have done sufficient research of your own etc
    ConsumerRightsExpert - 28-Mar-18 @ 10:34 AM
    I bought a new Honda CRV in Jan 2017. During my discussions with the Honda Salesman I made it clear that I was retired, 90% of my driving was in town and that I drove less than 5000 miles a year. I bought a diesel engined vehicle in the belief that it was more efficient and cost less in road tax. I now have Diesel Particulate Filter problems which persist despite repeated "corrective" actions by the garage. I would like to know what my consumer protection rights are inas much that I should have been sold a petrol car rather than diesel because of my driving profile.
    monjo - 26-Mar-18 @ 11:13 AM
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    Donshaleone - 3-Feb-18 @ 6:48 PM
    Beefcake - Your Question:
    My 2017 RS focus is 8 month old, had a slight tap from engine. So returned it to dealer , been with there 4 weeks, eventually they found the problem, on taking the sump off the engine they found a piece of piston, (told the skirt of the piston blaming my aftermarket cat back exhaust. And back pressure change) I am getting an engineers report done but now my engine is in bits, do I now owe the dealer for work they have done so far? And I drove the car to the dealer, can I request them to put it back how I left it with them so I can drive it home? Or to another garage for repair?Thanks

    Our Response:
    You may need to negotiate a fee with the dealer if the problem is a result of the product you had fitted post-purchase (and we assume was not fitted by the dealer).
    ConsumerRightsExpert - 29-Jan-18 @ 12:42 PM
    Footie_fan - Your Question:
    Hello. I bought a car from a dealership in 2014 (it was a year old) and have always been happy with it. However, it always seemed damp during rainy weather and after a heavy downpour whilst travelling long distances, the car was filled with water on the passenger side, both front and back, if I placed my hand on the floor, it was completely covered with water. I have just taken it back to the dealership's repair shop, as rust was spotted on the door too and to see what was causing the problem. They have informed me that the near side back door is not the original panel, it wasn't fitted correctly and that it is faulty, which is why water has been coming into the car. I was never informed of this at purchase and they have evidence on their records showing this to be true. They've accepted responsibility and are drying my car out and repairing the damage. However, what if there is damage to the interior of the car, particularly the floor, caused as a result of the water, now or in the near future. Are they responsible for sorting that out too at their cost? I'm worried that further work is going to be needed.

    Our Response:
    After more than 3 years, this is something you'd have to negotiate directly with the dealer, or failing that the courts. At this stage it's not a straightforward consumer rights issue that we can give direct answer to.
    ConsumerRightsExpert - 29-Jan-18 @ 11:01 AM
    My 2017 RS focus is 8 month old, had a slight tap from engine. So returned it to dealer , been with there 4 weeks, eventually they found the problem, on taking the sump off the engine they found a piece of piston, (told the skirt of the piston blaming my aftermarket cat back exhaust. And back pressure change) I am getting an engineers report done but now my engine is in bits, do I now owe the dealer for work they have done so far? And I drove the car to the dealer, can I request them to put it back how I left it with them so I can drive it home? Or to another garage for repair? Thanks
    Beefcake - 27-Jan-18 @ 12:54 AM
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