Cars sold on HP

legal updates

What a lot of customers don’t understand when buying on HP, is that they are not buying the car from the dealer

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

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

HaswentWebsites for dealers small and large

Composer is a next-gen automotive platform that has been designed from the ground up to give you an intuitive way to promote your stock. You have extensive stock management options, and you'll gain a brilliantly responsive new website to advertise your stock, starting at just £39.99/month.

Nona BowkisLegal AdvisorRead More by this author

Related Legal Updates

How would you like to pay: cash, card, or crypto?

Crypto is a virtually unregulated payment method and does not have any statutory backing, unlike the S75 Consumer Credit Act 1974. Consumers will be unable to request an “undo” on the transaction and rely entirely on the seller to willingly provide a refund.

Why bother with Pre-Delivery Inspection Forms (PDI)?

It is easy to go around a vehicle, giving everything a cursory glance and just ticking the boxes to say you have looked at it.

A reasonable price to be paid for a service

The defendant paid only a portion of the invoice, promising to pay the remainder in good time, and took the vehicle.

Can an entire family bring court proceedings for an alleged defective car?

Luckily the Ruffles’ family dog didn’t turn up either as no doubt Pooch would have been allowed a woof on the witness stand too!

Car Dealers and Consumers – A Modern Day Tale

Ambulance chasers and chancer consumers are two pet hates of the legal team and we relish dealing with their issues here at Lawgistics.

Failure to deliver goods – Business to Business (B2B) sales

In these circumstances, our client as the buyer, will be covered under Sections 27-29 of the Sale of Goods Act 1979 (“SOGA”).

Warranty or Statutory Rights

We all regularly hear comments that a warranty covers consumer rights and there is a cut off of those rights once the warranty expires.

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.