Car dealership closed / Fault on car

LucasWAG

Hi, I purchased a car in early August 2025 - So 7 months ago, I paid for this with cash only to the tune of £7,000.00. I was wary at first of doing this, but it has being an independent car dealership in town for the past 30+ years.

3 weeks ago I noticed a problem with a potential leak of coolant fluid. I reported the matter immediately to the car dealership as per the warranty agreement I had (12 months cover) which was supplied by the car dealership.

The dealer asked me to get a garage (*They recommended one ajoined to their building) to investigate the fault, and then we'll go from there. I got an appointment with them within the week, they conducted a test of the car and found they could not replicate the fluid loss after a range of tests.

They did however report that there was a previously undiagnosed oil leak and an exhaust cable that had corrosion on it, they said they would get back to me with any costings, but did advise that this work was excluded from any warranty as per the terms of the warranty agreement I had.

I didn't worry about that, but the garage finally come back with a quote for me - They advised the work will be in excess of £1,500.00. I was taken aback by this and replied that I would discuss it with the car dealership.

I emailed the dealership, the next day I received an email from the garage saying that actually the car dealership is now all closed up. I was confused by this, so I drove down and sure enough - The forecourt was completely empty and it was all locked up.I phoned the dealer and it went straight to voicemail.

I asked on social media and sure enough had confirmation that the dealership had suddenly closed, whether through rumour or absolutes, I had a variety of stories of the dealership owing money and doing a moonlight flit, to him suddenly retiring the business and working under someone else elsewhere.

Either way, whatever the story - I have a faulty car with a serious fault (Or faults*) that I have only had for 7 months. I don't know were legally I would stand with this, or if I am completely unprotected due to paying all cash. I have nowhere to direct my complaint to against the dealership?

powerful_Rogue

Age and mileage of the vehicle?

If the company has properly closed down (check companies house) then you will be out of luck

ThumbRemote

You bought from a company. Unfortunately if that company doesn't exist any more, you cannot pursue them for a remedy. (Unless the company had assets, when you may be able to prevent it getting closed down, but it's not a common situation nor is it a simple process)

It's almost certainly worth getting a second opinion on the work needed and cost.

Alderbank

…It's almost certainly worth getting a second opinion on the work needed and cost…

I agree.

What is the 'serious fault' you speak of?

The oil leak might be just a worn oil seal or a worn flexible pipe. How old is the car?

The lambda sensor is located in a very hostile location and often fails due to corrosion, but it is a very easy fix.

Why are these items excluded from the warranty?

born_again

https://forums.moneysavingexpert.com/discussion/6652675/car-dealership-closed-fault-on-car

Garage shut down, then while you could take them to court if they have gone bust, then you are throwing money away that could be used to fix car. As you are passed the 6 months where the faults could be taken as there when you bought the car. (would need a 3rd party report)

Oil leak can not be that bad as you have never noticed oil level dropping in the 7 months.

Exhaust cable will just be normal on a car of the age of yours, given the cost. Wear & tear.

Neither are serious faults.

Ask around for a well recomended local garage to look at car.

DeathByFluffy

Neither of the faults you have mentioned is serious - especially the exhaust, as they get rusty in a matter of months on a brand new car. A lot of your quote will likely have been for a new exhaust when it most likely isn't necessary.

Not worth the aggro chasing a possibly non-existent company for the cost to remedy what I assume is a minor oil leak (if it was major, you'd have found it yourself) - keep an eye on oil levels and only look to have it sorted if you lose a considerable amount.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81859295#Comment_81859295

It's highly unlikely a company has dissolved that quickly. It's very possible it ceases trading that quickly but winding up a company isnt an overnight excercise.

As others have said, check what's happened to the legal entity on Companies House and also in the London Gazette (assuming it's in England/Wales). Depending on what's happening will inform your next steps but if it's in the process of being dissolved then speed is of the essence. You can get a company reinstated if you miss the boat but it's a much longer more painful process than objecting to it being dissolved in the first place.

PTP123

Regardless of the companies situation, has the OP actually go any real right to have the faults fixed. It's after 6 months so it's up to the OP to prove the faults were there from day one and what are these faults…. A coolant leak that isn't leaking, a minor oil leak and a rusty exhaust.

LucasWAG

Hi! Apologies for delay, just to answer some questions on it!

The vehicle is a 2017 model, I have done 5,000 miles myself in it over these 7 months and the mileage now has just crept over the 50,000 miles mark. Majority of it was motorway miles anyway for me.

Companies House shows as the following:

It is still active, however I am very conscious that the Accounts section only comes to this weekend, I imagine it should show the forthcoming months if they were trading still.

I could be prepared to take it to another garage for further evaluation, I think the prices I was quoted for the work was quite excessive so a second opinion would always be warranted, I am just more devastated by the fact that a reputable dealer in the town has flown the coop when I could have looked at challenging them for any repair cost.

I thought I was safe and put some trust in to it, but it's obviously bit me. I imagine if the company is likely to officially close at this weekend, I would have no time to put in any challenge to this either way.

Aylesbury_Duck

https://forums.moneysavingexpert.com/discussion/comment/81860137#Comment_81860137

I don't think more time would necessarily be much help. A small coolant leak ( I say small because it clearly isn't causing serious problems and can't be replicated) that has developed in the last three weeks of your ownership of seven months doesn't suggest a problem that was inherent when you bought the car. The oil leak also sounds minor - again, you hadn't noticed it during what I presume were regular checks of your oil level in the last seven months? That suggests that it, too, may be a recent phenomenon and some engines do consume a little oil as they age, rather than there being a leak in the normal sense. Any serious coolant or oil leak in the last seven months and 5,000 miles would have caused obvious and perhaps even serious problems.

The sensor is just an age- and position-related thing.

From what you've described, none of these things are likely to have been present at purchase and the dealer would probably be able to defend them quite comfortably.

pinkshoes

https://forums.moneysavingexpert.com/discussion/comment/81860137#Comment_81860137

Unfortunately some businesses just close, so your warranty is now null and void.

Everything you've listed could have easily happened in the last 7 months and 5000 miles of driving.

I would consider getting another quote. What exactly are they doing for the £1500??