If I Get Car Finance What Are My Rights?

Understanding your rights is crucial when you finance a car.

Whether you’re looking to buy a shiny new model or a used vehicle, there are various laws that can protect your investment.

From the Consumer Rights Act 2015 to Section 75 claims, discover how your car purchase is protected in this useful guide.😊

If I Get Car Finance What Are My Rights?

When you enter into a car loan agreement, you are automatically protected in case things go wrong.

The Consumer Rights Act 2015 ensures that any car you finance is as described, of satisfactory quality, and fit for purpose.

You can file a claim if the vehicle doesn't meet these conditions.

Keep in mind that used cars do have signs of wear and tear. Therefore, you can only make a claim if the wear and tear is more extensive than advertised.

If you experience financial difficulties and you can't afford to make the repayments, it's important to review your contract. There may be certain clauses included that protect you in these circumstances.

Your rights also include full transparency. This means full disclosure of any fees, interest rates, and the total amount payable over the term of the finance agreement.

If the information provided is misleading or incorrect, you may have grounds for contesting the agreement.

Always ensure you understand the terms and conditions fully before signing any finance contract.

Consumer Rights When Buying a Car

Purchasing a car, whether new or used, comes with assurances protected by law.

The Consumer Rights Act 2015 requires the vehicle to match its description, perform as it should, and be in reasonably good quality.

Consumer rights when buying a car cover everything from the initial purchase through to any issues that may arise.

If these standards are not met, you are typically entitled to a repair, replacement, or sometimes, a refund.

In addition to these rights, you are also protected against unfair contract terms when they purchase a car on finance.

This means any disproportionate penalties for breach of contract or obligations that are not made clear at the time of purchase, could be considered void.

As a consumer, you have the right to challenge any terms you believe are unfair or not explicitly agreed upon at the time of the car's purchase.

Car Finance Refund: What You Need to Know

If you're considering a car finance refund, it's essential to understand the terms outlined by the Consumer Rights Act 2015. This includes knowing your 'short term right to reject' the car.

You can opt for a refund or repair within 30 days if you discover a fault that was there when you purchased the vehicle.

However, the specifics can vary based on your finance agreement and the nature of the fault. Therefore, it's crucial to check over the contract details.

It's worth noting that the process for getting a refund may involve providing proof of the fault. You may also need to formally notify the finance company of your decision to reject the vehicle.

The lender will have a procedure in place for handling this situation, so it's advisable to contact them directly and follow their guidance.

Keep all communication you have with the lender in writing and maintain records of any faults or repairs. This documentation will support your case for a refund.

Returning a Car on Finance Due to Faults: UK Consumer Rights

In the UK, if you need to return a car on finance due to faults, the process is straightforward.

The Consumer Rights Act 2015 states that any fault found within the first six months is assumed to have been present at the time of purchase. That is unless the seller can prove otherwise.

Returning a car on finance due to faults may lead to a full refund, a partial refund, or the option to have the car replaced or repaired.

It's important to act quickly and follow the proper procedures as you have more rights within the first six months of the purchase.

Remember that your right to return a car due to faults extends to both new and used vehicles.

If a fault arises, the dealer is your first point of contact as they are responsible for rectifying the issue.

If the dealer is uncooperative or the problem persists, the lender should be informed as they may need to intervene.

The key is to communicate effectively and know your rights. The Consumer Rights Act 2015 is there to protect you, but it also requires you to take certain steps to ensure your rights are upheld.

At Carmoola, we offer transparent, affordable used car finance. You can even check how much your finance will cost before you apply.

If you experience any issues with your vehicle after taking out one of our finance deals, you should first take it up with the dealer.

If the dealer fails to rectify the issue, contact our friendly team and we’ll be happy to help.😊

Read more about car finance agreements:


FAQs About Your Car Finance Rights:

What counts as a fault with your vehicle?

A fault with your vehicle can be any issue that impairs its function, safety, or use. This includes mechanical breakdowns or defects that were not disclosed at the time of purchase.

Do UK Consumer Rights Apply to Used Car Purchases?

Yes, UK Consumer Rights, including the Consumer Rights Act 2015, apply to used car purchases, offering protection against faults and misrepresentation.

When do I have the short-term right to reject a car purchase?

You have a short-term right to reject a car purchase within the first 30 days of ownership. This applies if the vehicle fails to meet the standards of quality, or if it isn’t fit for purpose.