Used Car Warranties

What are the Customers’ Legal Rights when Buying a Used Car?

The Sale of Goods Act lays down several conditions that all vehicles sold by a trader to a consumer must meet. The vehicle must be:

As described – this refers to any advert, paperwork, signage or verbal description made by you.

Of satisfactory quality – this covers minor and cosmetic defects as well as substantial problems. It also means that products must last a reasonable time. But it doesn't give your customer any rights if a fault was obvious or pointed out to them at point of sale.

Fit for purpose – this covers not only the obvious purpose of a vehicle such as towing a caravan but also any purpose your customer queried and has been given assurances about.

If you sell a vehicle to a customer that doesn't conform to the above conditions you are legally obliged to resolve the problem if they seek redress.

The Act covers new and second-hand vehicles however if you sell to another trader under ‘trade’ terms, their only entitlement to a refund is if the vehicle isn’t 'as described'.

Customers’ Legal Right to Reject a Car

The Sale of Goods Act states that if a customer wants to reject a faulty vehicle, they have to do so within a "reasonable time". A legal definition of "reasonable" is not given though - it varies from case to case and could be just a few weeks from the date of purchase.

If a customer rejects a faulty vehicle within this "reasonable" period, they are entitled to ask for their money back and maybe compensation to cover costs (consequential damages).

However, the right to reject goods and get a full refund only lasts for a relatively short time after which the customer is deemed to have 'accepted' goods. This doesn't mean that the customer has not got legal redress against you, just that they are not entitled to a full refund.

Instead the customer is first and foremost entitled to compensation or to have the vehicle repaired (at least cost) or replaced.

Customers’ Legal Right for a Repair or Replacement

All customers can make a claim for compensation at any time untilsix years after purchase (in Scotland, five years from discovery of the problem) as this is the legal limit on court claims for breach of contract. During this period, you need to consider any claim of breach of contract.

Any repair or replacement you arrange must not cause your customer unreasonable inconvenience. You may have to pay for other costs such as transportation. However, if a replacement is impossible and the vehicle cannot be repaired economically, or vice versa, then you can offer a full or partial refund.

Your customer can ask for a repair or a replacement immediately (instead of asking for a refund) at any time.

If You Want to Dispute a Claim

Under the amendments to Sale of Goods Act (EC Directive 1999/44/EC) if you want to dispute a claim by a customer it’s up to you for the first six months to prove that the fault was not present at the time of sale. However, after the six months is it’s up to your customer to prove the vehicle was faulty when sold.

Needless to say the evidence would have to be strong to lead to a conclusion after such a length of time. A possibility could be that a car may have dropped off a ship / dockside into the sea and been recovered. When dried out it may seem fine but of course, over a period of time the salt water may be corroding parts from the inside at an accelerated rate.

When a Customer Cannot Make a Claim

A customer has no rights in respect of defects that were brought to their attention before the sale, or if the customer examines the goods before purchase and any defects should have been readily noticeable.

A customer cannot claim for damage they may cause to themselves, or if they themselves damage the vehicle (accidental damage), or they simply change their mind about wanting the vehicle.

A customer cannot claim if they choose a vehicle themselves for a purpose which is neither obvious nor made known to you, and they then find that the vehicle is simply unsuitable for that purpose.

A customer has no rights to claim for faults that appear as a result of fair wear and tear.

A customer cannot make a claim for a misdescription if they were aware it was a misdescription before the sale was agreed.

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