Buying a New Car: Your Rights

Buying a New Car: Your Rights

After a house, a new car is often the largest purchase you will make. Given the sums involved, it pays to know where you stand legally before you sign anything, and what your options are if something goes wrong after you drive off the forecourt.

Before you buy

A reputable dealer is the best starting point. Word of mouth from family and friends is useful, and most established dealers belong to a trade body such as the National Franchised Dealers Association or the Retail Motor Industry Federation (the Scottish Motor Trade Association covers Scotland). Membership usually means the dealer signs up to a code of practice and an independent dispute resolution scheme, which can be helpful if a problem arises later.

Price is usually negotiable. Manufacturers publish list prices, but dealers often have room to move on the on the road figure, particularly at the end of a quarter or when a new model year is approaching. Whether you pay in cash, finance through the dealer or use your own funds, it is worth pricing each route separately. Part exchange is convenient, but selling your old car privately may raise more. Take your time, get quotes in writing and compare.

When you reach the paperwork, check that the figure you are signing for is the full on the road price. That usually includes VAT, vehicle first registration fee, number plates, road tax for the first year and delivery. Anything described as optional, such as paint protection or extended warranties, should be itemised and priced separately. If a salesperson makes a verbal promise about specification, delivery dates or extras, ask for it to be written into the order form. Promises that are not on the contract can be difficult to enforce later.

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Deposits and cancellation

Most dealers will ask for a deposit when you place the order. Make sure the order form sets out what happens to that deposit if you change your mind, if the car is not delivered on time, or if the agreed specification is not available. Some deposits are refundable in particular circumstances and others are not, so it is worth reading the small print carefully before handing over money.

If you bought entirely at a distance, for example fully online or over the phone without visiting the showroom, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 usually give you a short cancellation window. The same applies to some off-premises sales, such as a deal concluded at your home. Cancellation rights do not normally apply to a purchase agreed face to face on the dealer's premises, even if you only signed the order an hour ago. Citizens Advice has up to date guidance on how the rules apply in particular situations.

Your rights under the Consumer Rights Act 2015

The Consumer Rights Act 2015 is the main piece of legislation covering goods bought by consumers from traders. It replaced earlier statutes such as the Sale of Goods Act 1979. Under the Act, a new car should be:

• of satisfactory quality, taking into account the price and description;
• fit for any particular purpose you made known to the dealer, for example towing a caravan of a stated weight;
• as described, including any specification, mileage, colour or trim level set out in the brochure or order form.

If the car fails to meet these standards, you have remedies against the dealer who sold it to you, not the manufacturer. The manufacturer's warranty is a separate, additional protection. Your rights then depend largely on how long you have owned the car:

• Within the first 30 days, you usually have a short term right to reject a faulty car and get a full refund.
• After 30 days, but generally within the first six months, you can normally ask for a repair or replacement. If the repair does not resolve the fault, or if it would be disproportionate, you may be entitled to reject the car or to a price reduction.
• During the first six months, a fault is generally presumed to have been present at the point of sale unless the dealer can show otherwise.

For practical steps on rejection, see our guide on what to do if a just-bought car breaks down.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

Paying for the car

How you pay affects what protection you have if things go wrong.

• Credit card: Section 75 of the Consumer Credit Act 1974 makes the card provider jointly liable with the dealer for breaches of contract or misrepresentation, on transactions where the cash price of the item is over £100 and not more than £30,000. Even paying just the deposit on a credit card can be enough to bring the whole purchase within Section 75, although this is fact specific.
• Debit card or other payments not covered by Section 75: you may be able to ask your bank for a chargeback under Visa or Mastercard scheme rules. Chargeback is not a legal right, but it is often a practical route to a refund. Time limits apply.
• Dealer finance, such as hire purchase or personal contract purchase: the finance company is the legal owner of the car until the agreement is settled, and is also the party you complain to about faults, because in law you bought the car from them. They are responsible under the Consumer Rights Act in the same way as a cash seller would be.

If something goes wrong

On collection, check the car carefully before you sign for it. Look for paint defects, panel gaps, scratches and missing accessories. Make sure the V5C registration document, service book, handbook and any spare keys are present, and that the mileage on the odometer matches what was agreed. Note any concerns on the delivery paperwork before you drive away. It is easier to sort issues out at handover than weeks later.

If a problem does emerge, put your complaint to the dealer in writing, keep copies of all correspondence and give them a reasonable opportunity to put things right. If you cannot reach an agreement, check whether the dealer belongs to an alternative dispute resolution scheme such as The Motor Ombudsman. Trading Standards, accessed through Citizens Advice, can also help. As a last resort, the small claims track of the County Court handles many consumer motor disputes.

For current figures, time limits and step by step procedures, GOV.UK and Citizens Advice are the most reliable sources. If you are considering a second hand vehicle instead, our article on buying a used car covers the differences in detail.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Car Purchase Rights Checker lets you bought a faulty car? Find out exactly where you stand legally. Takes 1 minute. Try it now →