Rejecting a faulty used car dilemma

[Dinoman]

Hi All,

I would greatly appreciated if someone could offer some advice as to my next move regarding the used car I brought which has now developed five faults within the first 6 month of ownership. Thank you.


After wanting a Peugeot RCZ car for Free years, I finally decided to take the plunge and buy (after searching for 4 months and travelling over 200 miles to view it) a used three year old limited addition model costing £12300 + £150 adman fee + £28.92 card fee from the UK’s largest used car dealership.

1. During the First week of ownership I gave the car a thorough clean and noticed a stone chip in the windscreen (this will become relevant later on).
2. After Four weeks of ownership, I had the wheels, callipers and hubs refurbished on the car at a cost of £480.

The problems start

1. After Five weeks of ownership, the engine management light came on and the car went into limp mode. I had to book an unpaid day off of work to deal with it. The dealer requested that I take the car to a Halfords Autocentre for diagnostics. Halfords diagnosed faulty spark plugs and they were placed at my own expense and cost £68.
2. Within the next seven days, the engine light came back on and the car went into limp mode once again. Halfords were unable to identify the problem and the car was booked in with a Peugeot dealership for diagnostics. While waiting for my diagnostics appointment, the car developed a further two faults. These two faults along with the previous fault were subsequently identified by Peugeot and repaired at a cost of £2800 paid for by the ‘dealer’.
3. One week after the repairs to the car, I became aware of a clunking noise during gear change. The car was subsequently returned to Peugeot (twice) for inspection as it was deemed to be related to their earlier repairs. Peugeot were unable to diagnose the fault and the car was removed from their workshop.
4. The dealer then requested that I take the car to alternative VAT registered garage for inspection.
5. The car has now been taken to three other garages for inspection including an alternative Peugeot dealership and none have been able to find what is causing the noise, but it is believed to be mechanical related and has been documented. Peugeot have advised to contact them again if the fault becomes worse.
6. The car is now on its fifth fault which cannot be diagnosed and has now been present for almost six months.
7. I have always been aware that I had the option to REJECT the car under the Consumer Rights Act, and have therefore been reluctant to spend any more money on the car until the Faults were rectified as I had already spent £480 on improvements that I would not be able to claim back if the car was returned.
8. While waiting for the ‘outstanding’ repairs to the car to be completed I have had to replace all four tyres for legal and safety reasons, again I was reluctant to spend any more money on the car until the issues were resolved. The tyres were replaced on a ’like for like’ basis at a cost of £612.
9. As all efforts to get the fault identified and repaired have been exhausted, it is now a case of reject or except the car.

The Consumer Rights Act

As this latest fault ‘the clunking noise’ was reported to the dealer within the first six month of ownership, and the fact that they have not denied liability, I am of the understanding that I can still reject this car under The Consumer Rights Act as it is not of satisfactory quality, however according the Dealer’s T&Cs, if the car was returned? then they would deduct 25 pence per mile for usage. As I have currently covered 14000 miles since the car was purchased, this would mean they would automatically deduct £3500 to cover the mileage, neither would I receive a refund for the admin fee nor the card charges, £178.92 combined. I would also lose the £1100 pounds I have spent on refurbishments and new tyres, the £68 for new spark plugs, and approximately £150 in loss of earnings, then there is also the chance that they may say that ‘I’ damaged the windscreen (paragraph 1) and deduct up to £600 for a replacement, bringing the amount of my losses to £5597 and I have not even owned the car for a year!

Option 1

Should I return the car under CRA and argue that their mileage deduction is excessive and also request that they deduct the cost of the ‘new’ tyres from this because I was required by law to give them the opportunity to repair the car, however as the faults and repairs have dragged on and on for so long, I have had to replace the tires as a necessity and legal requirement. Could I also offset my financial losses as detailed above? And the damaged windscreen, is this a grey area? Could I also argue that the restorations to the car should also be taken into consideration as these have added value.

Option 2 (preferred option from a financial perspective)

Notify the Dealer that I reserve the right to reject the car under CRA as it is not of satisfactory quality, buy agree to keep the car provided that they are held entirely accountable for any outstanding repairs required regarding the clunking fault for the next 5.5 years. And request compensated for all my financial losses regarding all the faults (approx. £218). Could I also expect compensation for all of my troubles?

Thank you.

[des8]

Hi and welcome
firstly, how did you pay for the vehicle? cash/credit card/finance?

[Dinoman]

Wow... that was quick and thank you. By debit card

[des8]

OK, so your only course of action is via the dealer.

i doubt the dealer will agree to accepting liability for unspecified repairs over the next 5 years!

You would appear to be in a position to exercise your final right to reject.
As you note an amount may be deducted from the refund, but it doesn't have to be at 25p per mile. It is possible to negotiate a lesser amount (altho' i believe the motor trade feel that is a reasonable rate!)
You can of course use the improvements you have made in those negotiations, as well as your right to claim damages

If you fail to come to an agreement you can always initiate a court claim.
If you don't claim in excess of £10,000 the case will be allocated to the small claims track, which will mean no exorbitant solicitors costs.

[Dinoman]

OK, so your only course of action is via the dealer.

i doubt the dealer will agree to accepting liability for unspecified repairs over the next 5 years!

You would appear to be in a position to exercise your final right to reject.
As you note an amount may be deducted from the refund, but it doesn't have to be at 25p per mile. It is possible to negotiate a lesser amount (altho' i believe the motor trade feel that is a reasonable rate!)
You can of course use the improvements you have made in those negotiations, as well as your right to claim damages

If you fail to come to an agreement you can always initiate a court claim.
If you don't claim in excess of £10,000 the case will be allocated to the small claims track, which will mean no exorbitant solicitors costs.

Thank you very much Des8 for taking the time to read through my dilemma and for the helpful advice.

Just one final question if I may?.... at the bottom of my final notice to reject letter, I was considering adding the following; "I would consider keeping the car if you were to offer an adequate price reduction" good or bad idea?

[des8]

That is fine, and is covered in the consumer Rights Act 2015 at section 24