Many of our dealers sell cars on HP whether that is through themselves as an authorised FCA broker or via one of the online brokers which customers can approach direct.
What a lot of customers don’t understand when buying on HP, is that they are not buying the car from the dealer – they are hiring the car from the finance company who have purchased the car from the dealer.
Buying a car this way means that the customer does not have a contract with the dealer which in turn means they have no Sale of Goods Act rights. Any rights they have are against the finance company under the Supply of Goods (Implied Terms) Act. This will mean that the dealer can simply refer the customer to the finance company in the event of any issue. Of course, our dealers are best advised to keep themselves in the loop of any such referral as they need to work with the finance company to find a resolution, not least to stop the finance company giving away an unwarranted refund of which they will try and reclaim from our dealers.
Customers’ rights when buying on HP are covered in our Legal Rights booklet
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