Purchasing a used car always comes with risks. It is almost impossible to know the precise history of a vehicle and the specifics on its condition. There are services out there that can help, whether it is a car broker service or hiring an impartial mechanic, but many opt not to use them. This is the simplest way to purchase a faulty car on finance.
As you’d expect, there are scenarios where there will be a few problems with the vehicle. There are many ways your situation can unfold. Let’s discuss the matter in greater detail below so you know what to keep in mind.
Right to repair and reject
Firstly, we will talk about the right to repair. Usually, the initial action when there is something wrong with the vehicle you bought on finance is talking to the dealer. They need to know there is a problem. It’s here where your consumer rights come into effect. You might not or might have to go to a garage to prove the damage. Also, you need to prove you didn’t do it yourself. In most instances, the dealer should admit fault immediately and invoke their right to repair.
This right means that before anything else, the dealer must offer a chance to put everything in order. They can use their own garage for repairs or get approval from the finance company to send it elsewhere. The fix needs to be at their expense once they accept fault, not yours.
Right to reject
If there are issues with repairing the vehicle or inconveniences, you may want to exercise your right to reject. You should have this, even if you choose a car broker service. Like the seller, buyers have their own rights. They can refuse a damaged car. Again, you can only use this after proving the fault doesn’t lie with you and comes from a time before your purchase.
The important thing here is the right means you can reject the motor and refund your finance. You can actually exercise this within 30 days of the purchase. You don’t even have to allow the dealer to use the right to repair. After the 30 days, you can reject if the dealer declines to repair or attempts it and can’t resolve the issue.
In some cases, you can use the right to reject if the repair will lead to huge inconveniences for you. This is a muddier detail to navigate though.
Finance companies refusing returns
Another thing we need to discuss is whether the finance company can refuse your decision to return the car. You might decide to reject and find something else. The company could try to stop the return and pin it on you instead. This won’t always happen, but it pays to be aware of it even if you use a car broker service.
The company will usually begin an investigation. They will examine the motor or ask you to do so at your own cost. The circumstances and problems will eventually form a last decision on whether they will accept the return. Should they accept, you’ll be refunded your money, or most of it depending on the contract.
In other scenarios, they will reject your claim. If this occurs, you have liability unless you take things further. It can mean both finishing the contract and paying for repairs.
As for whether you can appeal, you can do so. Normally, this happens through the Motor and Financial Ombudsman. It is a service that’s run legally and for people lacking legal representation or help unless you opt to get it. The motor ombudsman will look at the case themselves. They can come to a separate conclusion to the finance company on the vehicle.
If they find your rejection has grounds, they can demand the finance company accept the return. There can even be a fine or you could get compensation. This is a massive incentive for the finance company to do their part and keep everything proper.
Learn from us and start a car broker service
At Auto Car Brokers, we help prepare our clients for success. The learning tools here represent our own success in broking. You can learn what worked for us and use it to start your own business. Plus, we can offer extra support and advice if you need it.
So, feel free to speak to us if you are thinking about offering a car broker service. We can put you on the path to success.
