Another Section 75...this time re a used car

Winterrose

Evening all,

I bought a used car from a dealership about 5 weeks ago, using my credit card for both the deposit and balance.

In the time since, a couple of faults have arisen so I called the dealership last week and arranged to take it back for a look today as when I bought it they said it had a 6 month warranty. This is recorded on the invoice, which is also stamped with the dealer's name and address.

I arrived at the dealership as agreed today...and it was gone! All locked up. The place next door (mechanic) said the guy was kicked out for not paying his rent and that he's out of business. The website no longer exists.

However it's all a bit weird as the mechanic is actually the guy who showed me the car in the first place and took the payment (though admittedly is was in the building next door to his own garage). He did mention this and said he knows he was the one who took the payment but he did it as a favour since the other guy wasn't around, and that the other guy also owed him a lot of money (I assume he did the mechanics, services etc on the cars for sale since he's next door).

He offered to look at the car for free and try to sort the faults (I guess since they're minor) for no charge, so it's currently with him.

I don't know whether he's telling the truth or not, but it all seems bit fishy so now I'm wary about the condition of the car.

My question is, am I able to claim under Section 75 for any repairs required since the original dealership is now out of business (even if the mechanic is not being truthful, it seems that the dealership I bought from genuinely has folded) and therefore my warranty is invalid? If so, what kind of documentation will I need to present to support the claim?

Thanks!

YorkshireBoy

So you bought a car from Business A, but paid Business B next door as a way of (partially) settling a debt that Business A owed Business B?


Section 75 doesn't apply.

Winterrose

Hiya,

No, not quite...I paid within the premises of the original dealership (Business A) and the invoice is in that name, so I did pay the correct business (albeit handled by someone who works next door - Business . My concern is less that the money went to the incorrect place and more that the guy who took my payment is actually the owner of Business A and for whatever reason is lying to me about another man being in debt and folding the business.

Assuming that the payment was correct, would Section 75 apply since I have the invoice, receipts etc so can prove purchase of the car from the dealership that has folded?

I'm concerned that while when I was browsing and I purchased the car, the dealership had a running website and presence at an address, whereas now there's not much proof they were around.

Not sure what to do to be honest! Hoping the guy who currently has the car fixes the problems so it doesn't have to go any further.

YorkshireBoy

On your credit card statement, is Business A showing as the recipient of the credit card payment? ie the same name as on your invoice?

So the guy from Business B next door came in to Business A and processed the payment using Business A's card machine, computer, printer, etc? If that's the case, how would he benefit?...ie get the cash Business A owed him?

Winterrose

The credit card statement shows the same name as the receipts, so I think the payment is legit.

I don't think Business B was trying to recoup the money from Business A via me ( I actually hadn't even considered that!).....I'm more concerned that there is no Business A and B in the first place, but that there's only one business, that this one guy has folded and reopened under another name for debt or bankruptcy reasons or whatever, and that he's pretending there was another business.

If that's the case, he can avoid honouring the warranty if there are any major faults with the car and I'm unsure whether I can trust whatever work he says he's doing on the car this week to fix the faults.

Whatever the truth, I've bought a car with a warranty from a business now folded...if that's the case, is there a possibility I can claim for repairs through the credit card company?

chattychappy

If the guy you bought from is a sole trader and the merchant on the CC statement is also the same sole trader (even if he is using a different business name), then you should be OK for S75.

But if there Ltd companies involved, it's probably a non-runner.

You need to be crystal clear about the legal identity of the entities you were dealing with. Ltd companies are distinct legal persons - ie different from the people behind them. Not true of sole traders, even if they use a trading name.