When Finance Companies get involved…

legal updates

Carefully check over the terms and conditions as some can be particularly onerous.

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.

Selling vehicles on finance is a necessary hazard of the car industry – It is a fact that many, many consumers buy vehicles on finance and therefore dealing with a good one should be a top priority of every dealer!

Pre-sale it is important to be happy with the procedures they set out for their applications and identity checks etc. You should obviously check the agreement they want you to sign and carefully check over the terms and conditions as some can be particularly onerous. You should seek advice on these agreements if you feel it is required.

The crucial issue we find though is how they deal with after sale complaints. We have experience with most of the finance companies currently operating in the industry and find that some are far more reasonable than others when dealing with customer issues.

Some finance companies are happy to work with the dealer and customer to find an amicable resolution whereas others blindly follow the provisions of the Consumer Rights Act (2015), some even misapplying it and making terrible, unfair decisions, often to the disadvantage of our dealers.

These companies are strictly the ‘purchaser’ of the vehicle so involving them is crucial in most disputes and you can only hope that they will be happy to be independent and not too persuaded by the Consumer.

The finance companies are somewhat at the mercy of the Financial Ombudsman Service (FOS) and therefore, in our experience, will try to avoid customers making complaints to them as each complaint costs £500.00. That cost would be passed on to the dealer if a finding was made against them.

The key in dealing with finance companies is to have a good working relationship but also have evidence on your side! Pre-sale checks are often vital but if problems arise getting an independent inspection done as soon as possible is always very helpful.

We would also recommend though that at the first sign of finance company involvement you seek advice from us so we can help advise on the specifics of the case and prepare the best possible defence.

Profit BoxDevelop your people like your business depends on it

What most people don’t know is that talent development doesn’t have to be complicated, high risk or expensive. Once they integrate key development stages, the results can be remarkable. Empower your team. Lead your industry. We’re your strategic learning partner, driving performance by moving skills forward.

Stephanie StrachanIn remembrance of Stephanie Strachan 1990-2020Read 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.

Section 23 – Consumers Rights Act 2015 (CRA2015)

The judge determined our member was liable for the repair, despite the clear MOT and trouble-free driving over three months.

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.