Advice about returning faulty car

hayley11

My nephew bought a car from a small dealership at the start of this month, the car started having issues within a couple of days, he reported this to the dealership who gave some advice, it eventually needed going in a garage, the dealership paid the 2/3 of the bill with my nephew paying the rest. Despite the work done, the issue was not fixed.

Whilst the car was in the garage, my nephew spoke to another garage that had previously worked on the car, he found a receipt in the folder with the rest of the cars documents. This garage said the car has had ongoing issues for several years and they've never been able to get to the bottom of it. The car's about 15 years old I think.

With this information, my nephew requested to return the car for a refund, it was within 30 days of purchasing it and we believe it's not as described or fit for purpose.

The dealership have said they don't have the funds to refund the money and have instead said they'll resell the car, but from what I can gather from a rather garbled text message, they want the car back in order to do that, and are offering a loan car in the meantime. We don't really like the sound of this.

My nephew spoke to CAB but they said to speak to my credit card company as I paid a small deposit, but the majority of the car payment was paid directly by my nephew via bank transfer and the car is in his name. I don't know why my credit card would refund the full amount? Plus we feel this is an aggressive approach and we'd prefer to resolve it amicably with the dealership.

I'd be grateful for some recommendations on how to proceed

born_again

S75 is why.

Dealership are going above by offering a loan car.

hayley11

https://forums.moneysavingexpert.com/discussion/comment/82153795#Comment_82153795

S75 doesn't apply if it's for a third party, I've researched that now. I don't know why CAB suggested it and can only assume there was a miscommunication about who's credit card was used.

It's not going above if the reason they're offering that is because they're not able to fulfil their legal obligations and give him a refund.

Alderbank

I'd be grateful for some recommendations on how to proceed

My first recommendation is to start your own thread. If you hijack an existing thread, responses to the original poster and to your nephew will become hopelessly mixed up together.

hayley11

https://forums.moneysavingexpert.com/discussion/comment/82153822#Comment_82153822

I'm confused? This is a new thread, I haven't hijacked anybody's post?

Alderbank

Please accept my apologies @hayley11, I've confused your post with another one.

I'm getting too old!

born_again

https://forums.moneysavingexpert.com/discussion/comment/82153810#Comment_82153810

So who's card was used.

Not sure exactly what you mean by 3rd party here. As CC are jointly and severally liable. Which covers the full cost of the car in this case.

You could take the retailer to court, but given they have already said they do not have the funds, then that sounds like if you go to court. \then they will shut up shop & you get nothing.

hayley11

https://forums.moneysavingexpert.com/discussion/comment/82154046#Comment_82154046

As mentioned in the original post, I paid for the deposit on my credit card, but the car is in my nephew's name, therefore I am the third party and my credit card company would not be liable. We don't want to take them to court, as also mentioned in my post, we want to resolve this amicably with the dealership. We're just not sure that giving the car back for them to sell is the best idea, although he wouldn't be signing the log book over until the money was back in his account.

sheslookinhot

I think the dealer is trying one. It is his responsibility to refund you less any reasonable usage. Selling the car on is irrelevant to you/your nephew. I think you need to insist on a refund or perhaps take another car from him.

A letter before action is the fallback, as you want to appear amicable at present.

hayley11

https://forums.moneysavingexpert.com/discussion/comment/82154342#Comment_82154342

Thanks, he's not offered a like for like replacement car, just a loan car while he tries to sell the other one, but without any agreement on timeframes, it could end up being months before my nephew gets his money back. It's quite a small dealership so they genuinely might not have the funds, so I'm really not sure what he should do to resolve this. He tried speaking to the dealership again today but hasn't been able to.

LukeB_92

Act in writing now — don't let the 30-day clock run down while the dealer stalls. Under the Consumer Rights Act 2015, within the first 30 days the buyer has a short-term right to reject faulty goods for a full refund, and no deduction for use can be made in that window. The dealer's cashflow problems don't change that legal position.

A few practical points:

- Put the rejection in writing (email is fine), stating the car is rejected as not of satisfactory quality, and keep copies. The 30 days run from the date of purchase, so don't rely on verbal conversations.

- Be cautious about the loan car arrangement dragging on — a clear written rejection inside the 30 days is much stronger than a verbal dispute that drifts past day 30, at which point the short-term right is lost.

- The deposit being on your card does complicate a Section 75 claim (as others have noted), but the primary claim here is against the dealer under the Consumer Rights Act.

- If the dealer still won't refund after a formal written request, a letter before action followed by a money claim is the route — 'I don't have the funds' is not a defence to the legal obligation.