Advice about returning faulty car

hayley11

https://forums.moneysavingexpert.com/discussion/comment/82154928#Comment_82154928

They haven't refused to refund per se, they will refund but they want to sell the car first, so they have the funds for the refund. Nephew has sent the refund request on email.

The main issue is how to deal with the process of them reselling the car, what my nephew should do to protect himself and not get stuck in a situation where he's still got a loan car months down the line, with no signs of the actual refund. It's that side of things we're not sure of.

sheramber

So they are going to sell on a car with issues.

You have no idea what amount he will sell it for or how long it will take.

They are playing your nephew.

Proceed as advised and issue LBA.

How many cars do they have for sale? They could be seized and sold at auction to get the money

Alderbank

The Ministry of Justice says that the average wait time for small claims court is currently 46 weeks so if your nephew chooses that route he will be waiting until next August for a hearing, crossing his fingers that this small dealership does not simply close down in the meantime.

What are the 'issues' which this 15 year old car has, and what is the make, model, mileage, condition and value?

All those are needed in order to know whether he does in fact have the short term right to reject.

LukeB_92

On the resale point specifically — your nephew shouldn't agree, in writing or otherwise, to the refund being conditional on the car selling. If the rejection is valid, the refund is owed because the car has been rejected, not because a new buyer has been found, and the amount is the price paid, not whatever the dealer eventually gets for it.

If he is willing to give them a very short window anyway, a few protective steps:

- Get the dealer's position in writing: car returned on a stated date, rejection accepted, and a full refund of the price paid by a specific date, whether or not the car has sold by then.
- Get a signed receipt when the car and keys are handed back, and keep photos of the car, its mileage and its condition at handover.
- Don't sign anything that frames this as sale-or-return, or that makes him responsible for storage, preparation costs, or a shortfall if it sells for less.
- Clarify in writing who is responsible for tax and insurance for both the returned car and the loan car while this is going on.
- If the agreed date passes with no refund, stop waiting and move to a letter before action. An open-ended 'when it sells' arrangement is exactly how this kind of thing drifts on for months with a loan car and no refund.