Second-hand Cars - Your Rights

Whether you’re buying an old banger from a friend of a friend or a year-old luxury motor from a car dealer, there are lots of pitfalls to look out for when buying second hand cars. So it’s important to be aware of your rights and to think carefully before buying.


Your rights if you buy second hand cars from a dealer:


When you buy a second hand car from a dealer, you have a right, under the Sale of Goods Act 1979, to expect the car to:


- Be of satisfactory quality (taking into account its age and mileage)
- Meet any description given to you when you were buying it, and
be fit for the purpose (for example, to get you from A to B safely)


If the second hand car does not meet these requirements you have a right to claim against the dealer for breach of contract.


Your right to reject a second hand car:


If there's a problem with a second hand car soon after you’ve bought it, for example, the car develops a problem you wouldn’t expect for the car’s age and mileage, or it turns out to be not what you’d been lead to expect, you may have the right to ‘reject’ the car and get your money back.


However, you have only a ‘reasonable’ time to reject a second hand car. There’s no clear definition of what a reasonable time is – you probably need to do it within three or four weeks of buying it. And if the fault is very obvious you may have less time.


If you reject a second hand car you must stop using it.


Your right to claim for the cost of repairs:


If it’s too late to reject the second hand car (or you don’t want to) you can ask the dealer for a repair or replacement. If the dealer refuses, you could:


- Claim from it the cost of getting the second hand car repaired elsewhere
claim for a reduction in the purchase price, or
- Return the car and get the money you paid back, less a deduction for the use you’ve had (called ‘recision’).


However, if your claim is worth more than the small claims limit where you live (£5,000 in England and Wales, £3,000 in Scotland or Northern Ireland) you may need to take advice before you act, because you may risk facing time-consuming and expensive court action.


If you get a warranty or guarantee with a second hand car, you may be able to claim on that to get any problems fixed. However, this doesn’t affect your legal rights, and you could still either reject the car, or claim against the dealer.


How a trade association can help with second hand car problems:


Some motoring trade associations have complaints schemes that can sort out problems between car dealers and customers. Check whether the dealer you bought from is a member of a trade association and whether it has a complaints scheme.


One of the main trade associations, the Retail Motor Industry Federation (RMIF), has a conciliation and arbitration service to deal with disputes about second hand cars.


If you bought your second hand car on credit:


If you bought your second hand car with a credit card or with credit provided by the dealer, the card company or credit provider is jointly liable with the dealer for any breach of contract, so you can also claim from them.


If the credit company refuses your claim, you could then take the matter to the Financial Ombudsman Service.


If you bought your second hand car on hire-purchase (HP):


If you bought your second hand car on HP, your rights are against the HP company, not the dealer, so you must take up any problems with it, not the dealer. However, you rights are different and if you have a serious problem, and the HP company won’t help, you will need to seek legal advice.


If you buy a second hand car privately:


If you buy a second hand car from a private seller you have fewer rights than if you buy from a dealer. Key parts of the Sale of Goods Act don’t apply – there is no legal requirement that a car is of satisfactory quality or fit for its purpose.


However, legally, the seller must:


- Accurately describe the second hand car (for example, an advert must not say ‘one owner’, when the car has had several)
- Not misrepresent the second hand car (tell you something about the car which isn’t true – so, for example, if you ask whether the car has ever been in an accident, the owner must answer truthfully)


If the second hand car you buy was stolen:


Anyone selling goods (including second hand cars) must be the legal owner or the sale doesn’t count. If a second hand car is stolen, the legal ownership of the car usually remains with the original owner. So, even if you buy it, in most cases it won’t legally belong to you.


If you discover the second hand car you’ve bought is stolen you should contact the police. It’s most likely that you will have to return the car to its rightful owner.


There are some exceptions to this and the situation is complex so you should seek legal advice. The only way to get your money back is to try and reclaim the cost of the car from the person that sold it to you.


If the seller has mislead you about the second hand car:


If something you buy is not ‘as described’, or if the seller is guilty of misrepresentation, you are entitled to:


- Give the second hand car back and get your money back, or
- If you want to keep the car, ask for compensation (usually the cost of any repairs it needs)


However, if you buy a second hand car that was not described as being in excellent condition or good working order, and it breaks soon after you buy it, you do not have any right to reject it, or to claim compensation.


Some unscrupulous second hand car dealers might pretend to be private sellers to get out of their legal obligations. If you think a dealer is trying to pretend they're a private seller, do not buy from them and report them to the local trading standards department.


Buying second hand cars at auction:


When you buy a used car at auction you have very limited legal rights. Though the Sale of Goods Act generally applies to cars sold at auction, auction houses are allowed to exclude its main conditions (such as being of satisfactory quality, as described and fit for the purpose) if they put a notice on display in the catalogue.