Used Car Warranties

Right to Repair or Replacement – First Tier remedies

Once the 30 day Short Term Right to Reject period has passed, if the customer comes back to you with a fault, they must give you an opportunity to repair or replace the goods before they can seek to reject the vehicle for a refund.

Previously, under the Sale of Goods Act 1979, dealers could undertake several repairs before agreeing to a refund. However, this new Act now only gives you one chance to repair.

To us, this makes the Act not fit for purpose as we all know that modern vehicles can be quite complex and so it is not always possible to correctly diagnose a fault at the first attempt, especially with intermittent faults. This then appears to put dealers at a disadvantage but there is nothing in the Act to prevent you from releasing a vehicle, as long as it is safe to do so, back to a customer and advising them that the repair job card remains open should they experience further problems.

It is also possible to agree with a customer to undertake a repair under any warranty you may have sold with the car as that will constitute a contractual repair and so will not count as a statutory repair under the Act. In this instance, you will need to ensure you have the customer’s agreement to conduct any repairs under warranty (preferably in writing) so it is clear it is a contractual warranty repair and not a statutory repair – the difference being only a statutory repair will give rise to the Final Right to Reject.

Whilst any warranty can be used, if you provide your own warranty you will have more flexibility to authorise repairs and make goodwill gestures.

Read more about how to run your own in-house warranty scheme

Published: 22 Sep 2015


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