Refund for current market value


It is clear that the consumer can only recover the amount paid for the goods.

Author: Katie Fitzjohn
Reading time: 2 minutes

This article is 7 months old.

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.

We have recently had a spate of consumers and finance companies requesting a refund based on the vehicle’s current market value. Unsurprisingly, in all situations the vehicle’s value has increased since sale.

We would advise client’s against agreeing to refunds based on current market values. 

Any refund amount should be based on the price paid at the time of sale, irrespective of any market fluctuations.

Indeed, Section 20(10) of the Consumer Rights Act 2015 which details the right to a refund provides the following:

“To the extent that the consumer paid money under the contract, the consumer is entitled to receive back the same amount of money.”

It is clear that the consumer can only recover the amount paid for the goods. Note however, the above section does not take into account Section 24(8) of the Consumer Rights Act 2015 which provides the right for the trader to make a deduction to take into account any usage the consumer has had of the vehicle since supply.

In any event, it is not practical or reliable to base a refund on the current market value as the values frequently fluctuate. A refund based on the price paid will provide an accurate and reliable method of calculating any refund.

If you require any further information or advice on this topic or any other issue, please contact us on 01480 455500 and we will be happy to assist.

Connected Car Finance

Ready to take the connected approach?

We’re here to ensure all used car dealerships deliver a better car finance experience for their customers. With over 4,000 approved dealer partners we ensure you are properly supported and connected with a range of flexible finance options, allowing you to lend and your customers to buy in complete confidence.

Katie Fitzjohn

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.