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

MotorDeskA car dealership management platform that combines all the tools your business needs into a single, unified and modern platform.

Available on all your devices via your web browser or the dedicated MotorDesk desktop and mobile apps.

Nona BowkisHead of Legal Services / SolicitorRead More by this author

Related Legal Updates

Broker Falls Flat: Court Dismisses Flimsy Claim Against Dealer

A County Court ruling has reinforced the importance of solid evidence and clear contracts, rejecting a broker’s claim against a car dealer over an alleged pre-existing fault.

Coincidence or Cause? When Timing Leads to Claims

A motorcycle engine seized just 30 miles after a service, sparking a claim of negligence. Find out how this case unfolded in court and why coincidence doesn’t always mean liability.

Elusive Vehicle Noises: What to Do When You Can’t Find the Fault

More customers are reporting strange noises that seem impossible to trace. Learn practical steps to recreate, record, and address these elusive issues while protecting your business.

AI is the future – but treat it with care!

AI can be a powerful ally—but recent cases show its misuse can lead to serious consequences, even contempt of court.

Major changes to UK Consumer Law have landed

The Digital Markets, Competition and Consumers Act 2024 has introduced sweeping updates to UK consumer law, including powerful new enforcement tools for the CMA.

The power of expert evidence in vehicle disputes

Our member never claimed the 5-year-old, multi-owner car was perfect.

When principle costs you the case

What started as a bold claim ‘on principle’ quickly unravelled into a costly courtroom lesson in getting your facts, and your legal standing, straight.

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.