Right to reject car that breaks down every week?

vancreef

I own a Toyota Auris diesel that was purchased new from my local Toyota dealer on October 5th 2015, and since November of 2016 the vehicle has displayed an engine warning light 7 times, 6 of which have happened since May 15th this year.

To date the vehicle has had 2 EGR Valve replacements, 2 instances of a "loose connection on the air-flow meter" and a further 2 instances that were described as being due to a "loose pipe on the engine".

Today the engine warning light has come on yet again and I have got to the point where I now wish to reject the vehicle as I am sick of having to keep going back to the dealer.

I have spoken with Trading Standards who advised that I have every right to reject the vehicle but Toyota GB and Toyota Finance Services are disputing this and state that the vehicle is being repaired under warranty which is acceptable to them, but not to me.

I bought the vehicle on a PCP agreement which means that I have not yet paid half of the outstanding balance which prevents me from simply handing the vehicle back.

Please can you let me know what my next course of action should be as I am absolutely fed up of having to have the vehicle repaired every week?

Vancreef.

neilmcl

As you purchase the car in Oct 2015 it is covered by the Consumer Rights Act 2015. You need to remind them that under the CRA the seller is allowed one chance only to repair, after which you are fully entitled to reject the vehicle. Bear in mind that any refund will take into account the use you've already had from it.

vancreef

I have told Toyota that I have now spoken with Trading Standards on three occassions and every time they say the same as what you have said, however Toyota have said that 2 failed EGR Valves, 2 instances of a loose wire and 2 instances of a loose pipe "are not manufacturing faults" and have made it clear that they refuse to accept my rejection of the vehicle. In one conversation I had with Toyota Finance they said that a manufacturing fault would have been apparent within the first 30 days and there's "no way a car with a manufacturing defect would have driven for a year without breaking down". When I told them that I was fed up of having to take it in for repair every week they also said "that's what the warranty is there for".
They think it's perfectly accpetable that it breaks down every week providing that they "repair it", which they clearly aren't otherwise I wouldn't be back the following week. One of their sales reps even called it a "Friday afternoon car" and said I'd be better off trading it in and he would be happy to go over the figures with me. I wasn't surprised when he said that my payments would go up by £65/mth.
The loose wire issue was "fixed" bby unplugging it and plugging it back in which made the engine warning light go out and they sent me on my way.
The whole thing is a nightmare.

RoonilWazlib_2

What are your finance provider doing about it?


Edit - sorry - you mentioned that it was Toyota Finance, I missed that.




Realistically this isn't going to move on until you put something in writing to them


Outline clearly your position under Consumer Rights Act - make it crystal clear you are rejecting the car and why - and that you have the right to do so under CRA. Give them a deadline to respond.


Tell them if they don't meet your deadline then you will be taking further action.
If Toyota Finance wont help then you could approach the Financial Ombudsman for assistance - tell Toyota Finance you will do this and see if this makes them act (they wont want you to do that).


Send the letter recorded - one copy to garage, one to finance dept. They cant then dispute that you raised the issue and tried to sort it and if you need to take further action whether through an ombudsman or even through court you can show that you have tried to resolve it and they have not acted reasonably.




(very surprised that Trading Standards (or was it Citizens Advice who take calls on behalf of TS) haven't suggested that this is your next step)

vancreef

Trading Standards did advise me to write a Letter of Rejection to Toyota Finance Services (TFS) which we emailed to them three weeks ago today with a Read Receipt request. They have acknowledged the letter but have so far only verbally told us that they are not willing to "allow" us to reject the vehicle, on the grounds that it is "too old". Their argument is that none of the break downs that the car has suffered were down to manufacturing faults. I then asked why the vehicle was repeatedly being repiared under warranty which only covers manufacturing defects, and they couldn't answer.
The Case Manager that I was appointed at Toyota GB has stopped accepting my phone calls on the basis that she "can no longer help", and that I have to go back to TFS. TFS are saying that it is TGB that are instructing them to reject my case, and so on, and so on.
I can't understand how after I have told them that I have the right to reject the vehicla under the Consunmer Rights Act 2015 that they can simpy say that they aren't going to allow me to.
With regards to the dealer; I have been told to leave them out of it as technnically I am buying the car off TFS.

DoaM

vancreef wrote: »

With regards to the dealer; I have been told to leave them out of it as technnically I am buying the car off TFS.

That's wrong ... your contract (hence consumer rights) is with the dealer. TFS are merely the finance provider. You can make a claim (reject the vehicle) direct with the dealer, and you can also raise a section 75 claim against TFS. If TFS refuse then you can escalate to the Financial Ombudsman Service (FOS).

System

No, trading standards are correct. If it's PCP you'll be on a hire purchase agreement. The dealer sold the car to the finance company, the finance company are now hiring it to you. You have an option to purchase at the end. Your dispute is with the finance company, not the dealer.

Forget section 75, it's not applicable here. Complain to the finance company, then the FOS. You can attempt legal action after that, but it will start to cost money then.

If all else fails, remember the car doesn't belong to you, you simply have use of it. If it's a lemon, be glad you have the option to not buy it at the end. Also look at your voluntary termination rights once half the total amount due is paid, (you may be way off, or already at this this point already) check you contract. Do not expect the finance company to educate you on your rights here, they won't like it.

You might find the following useful for perspective on the FOS:
Pre CRA and for a new car: http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=27071
Pre CRA and well used car: http://www.financial-ombudsman.org.uk/publications/ombudsman-news/90/90-vehicle-related-complaints.htm#cs2

Finally check the exact date of your contract, did it start on the 5th October, or was that the collection date after you signed late September 2015? The cut-off for the CRA was 1st October 2015.

DoaM

Post #7 raises a valid point ... what type of finance agreement is it?

vancreef

There is a final payment at the end of the term which would suggest a PCP but our actual paperwork states that it is a Hire Purchase agreement.
Mutzi; I'll have a look at the links later on.

DoaM

If the paperwork says HP then surely it's HP ... just with a slight twist (end-loaded payments). In which case the dealer is the seller and the finance company merely the method of payment. Therefore section 75 would apply. (AFAIK)

(This method of finance makes the finance company the Owner - until all payments are complete - but you are the Keeper; I presume the V5C lists you and not the finance company as the keeper?)

neilmcl

vancreef wrote: »

There is a final payment at the end of the term which would suggest a PCP but our actual paperwork states that it is a Hire Purchase agreement.
Mutzi; I'll have a look at the links later on.

A PCP is an HP agreement.