Letter Before Action - Faulty Used Car purchased 5 months ago

[Stanley21]

Good evening,

I wonder if you can help me.

I purchased a 6 year old used car with 90K miles on the clock from a dealer (200 miles away) in September 2020. Since then I have done about 2.5K miles on the car and have recently had a problem with loss of power (limp mode) and EML light coming on. This happened a few weeks ago (see timeline below).

I took the car to my local garage for diagnosis for which I paid £85 and they advised that the turbo had failed. The garage advised that the repair would involve a replacement turbo, turbo actuator & oil & filter change at a cost of £1,440.

As the car was supplied with a third party warranty, I provided the warranty details to the garage who then contacted the warranty company. The warranty company refused the claim – Having followed up with the warranty company they said that the turbo would not be covered.

I contacted the dealer that I purchased the car from to explain the situation who advised me that they had other customers who had experienced similar issues with the warranty company and that they would speak to the company on my behalf. The dealer advised that this may be due to the cost quoted by the garage being deemed too high and advised that I should look for a used turbo from a scrapyard.

A week after contacting the dealer they asked me to send the quote received from the garage to the dealer and warranty company which I did only for the warranty company to come back and send a link of a company that sells turbos for £350. I responded to this email saying that I wasn’t sure what they wanted me to do with that information (as there was nothing else included apart from name of company, address & turbo cost). I reiterated what parts needed changing per the email from the garage and noted that I had obtained two separate quotes from different garages and if the warranty company believes these are too high then they can arrange the repair at a garage of their choice.

Having researched the Consumer Rights Act 2015 and given that it has been less than 6 months since purchase I emailed the garage stating that the warranty company has refused the claim however as I am still within the 6 month period I can request the dealer to arrange for the repair of the car at their own cost and with little inconvenience to myself as possible.

The dealer responded attaching their standard terms of business stating that they had not authorised any inspection or repairs and by doing this I had breached the terms of business and the Consumer Rights Act no longer applies in this situation. They also stated that the mechanic has tampered with the vehicle without their permission. They also noted that the warranty had been provided to cover any such issues and that I should arrange for the repair of the vehicle as per the warranty company’s email. I responded to this stating that my mechanic had only diagnosed the problem and repair work had not been performed and in any case any T&C’s do not supersede the CRA 2015. Regarding the warranty I noted that the warranty does not replace my statutory rights under CRA 2015 and also included Section 19(3) and section 23(2) which states that the ‘repair or replacement’ of the goods must be done within a reasonable time, without significant inconvenience and bearing any costs in doing so and that under this law I am requesting the dealer to repair the vehicle however if they still decide not to carry out the repair then I will exercise the right to reject the vehicle and claim a full refund plus damages.

After chasing up with the dealer they said the warranty company had offered £600 to cover the cost or take the vehicle to the dealer and they will sort out the issue. I responded back saying that £600 will be insufficient to cover the cost of the repairs and in any case under CRA 2015 I require the dealer to repair the car whilst bearing any necessary costs in doing so which includes the cost of collection and return of the vehicle. Given that the dealer is 200 miles away and the car is not in a drivable state this unfortunately is not an option.

The dealer has come back saying that they are under no obligation to collect or deliver the vehicle and that the warranty company has informed them that £600 will cover the cost of repairs. I responded back reiterating that under CRA 2015 the dealer is responsible for the postage costs and that should they continue to refuse to bear the necessary costs I will exercise the right to reject the vehicle and claim a full refund plus damages through the courts. I’m yet to hear back from them but in the meantime I would like to draft and send a letter before action to email to the dealer to although I am not sure if I need one given that I have mentioned the CRA in previous correspondence?

Summary Timeline
19/09/2020 – Purchased Car
07/02/2021 – Fault came to light
08/02/2021 – Problem diagnosed by mechanic
10/02/2021 – Initial contact via phone with garage to notify them of issue
25/02/2021 – Notified that as I am within 6 months of purchase I am exercising right under CRA 2015 to ask dealer to repair the car at their cost and with little inconvenience to myself as possible.

Draft Letter

Subject: Letter Before Action

Dear Garage,

On XX/XX/XXXX I purchased and took delivery of the Make/Model (Registration: XXXX XXX) from you. On 07/02/2021 I discovered that it was not of satisfactory quality: the turbo wastegate had seized therefore causing damage to the electronic actuator.

On XX/XX/XXXX I called you to let you know about this fault over the phone and that the warranty company which was also supplied by yourselves had refused to approve the repair claim.
The Consumer Rights Act 2015 requires dealers to supply goods of satisfactory quality. However, the vehicle is clearly not of satisfactory quality, nor fit for purpose.

As noted below and in accordance with my rights bestowed by The Consumer Rights Act 2015 I require you to repair the vehicle within a reasonable time and without significant inconvenience to myself. I would remind you that you are required to bear any necessary costs incurred in doing so – and this includes the costs of collection and return of the repaired vehicle to me.

I note as per the offer sent via text message you have offered to repair the vehicle but have refused to take responsibility for the collection and return of the vehicle. This is in contravention of Consumer Rights Act 2015 sec 23 (2) which states that 'If the consumer requires the trader to repair or replace the goods, the trader must—
(a)do so within a reasonable time and without significant inconvenience to the consumer, and
(b)bear any necessary costs incurred in doing so (including in particular the cost of any labour, materials or postage).'

If you are unable or unwilling to repair the vehicle whilst bearing any necessary costs in doing so, I am legally entitled to reject the vehicle and to receive a refund.

I look forward to receiving your written response within 14 days. If I do not hear from you in this time I may be required to initiate legal proceedings for recovery of the money plus damages without further reference to you.

Kind regards,

Would be good to get some feedback on the letter before action and any advice/feedback on where I stand with regards to getting the dealer to take responsibility for the collection, repair & delivery of the faulty vehicle.

What is the position if the dealer continues to refuse to collect/return the vehicle for repair? I seem to think based on the CRA it should be the dealer that takes responsibility but any feedback is appreciated.

I’m aware that the 6 months will be up on 19/03/2020 – If I serve the LBA now with 14 days do I need to initiate court claim before 6 months is up or serving the notice is sufficient to be within the 6 month window?

Thanks.

[EnglandPi]

If I serve the LBA now with 14 days do I need to initiate court claim before 6 months is up or serving the notice is sufficient to be within the 6 month window?

The Court would prefer you to agree a settlement without going to court, so provided you keep copies of all your communications that will suffice, Having said that: All commuications need to be in writing, either email or snail-mail not texts or whatsapp or messenger or telegraph.

[Stanley21]

Thanks for the response.

I have been communicating via email mostly but I've noticed that the dealer responds faster via text hence have followed up via text message. All communications via text have also been quite formal but will make sure all future communications are via email to be on the safe side.

[des8]

The 6 month time limit isn't on when the consumer can initiate court action, but is a time limit on the period during which it is deemed the goods were unsatisfactory on delivery.

Any method of communication is acceptable as long as it is clear to the trader (CRA 2015 sec 20 (6)

Other than that your LBA covers all the necessary bases, so just send it, and if no satisfactory response initiate court proceedings without more ado.

[Stanley21]

Thanks des8.

Appreciate the feedback. Email has been sent to the dealer. Will update the post when I hear back.

[EnglandPi]

Whilst I agree any method of communication is acceptable as long as it is clear to the trade. The way the courts are working at the moment it is easier for a paginated bundle if the communications can be found.

[Stanley21]

No response yet from the dealer with regards to the LBA email. Would it be worth following up to ask if they've had a chance to revise their offer and that if a satisfactory response is not received within the time limit of the LBA then I will pursue further action?

[des8]

You need to give them time....say 14 days

[Stanley21]

Noted. Given that the 14 days was already issued in the LBA which was sent last week do I need to give an additional 14 days if I reach out to them again or are you saying now that the LBA has been served I should just wait out 14 days before contacting them again?

[des8]

If your LBA specified 14 days, do not contact them until it expires
If they contact you with an acceptable proposal, then accept it
If they don't, then file your claim

[Stanley21]

Thanks. Appreciate the advice. Will wait out the 14 day period and prepare for the claim closer to the time.

[Stanley21]

No further updates to report from the dealer. As the 14 days has now passed I guess it is time to pursue further action. I've drafted a Particulars of Claim as per advice I've seen on this forum from other posts - Would be grateful for some feedback.

1. The Claimant seeks damages pursuant a contract entered into on 19/09/2020 between the Claimant and the Defendant for the purchase of a motor vehicle for a sum of £X,XXX. The contract is subject to the Consumer Rights Act 2015 and the Claimant alleges that the Defendant is in breach of said Act for the reasons set out below.

2. On 07/02/2021 Claimant encountered a fault with the vehicle's turbo which was diagnosed by a local mechanic. Claimant informed Defendant verbally on 10/02/2021 and followed up in writing. Defendant has agreed to repair the vehicle but refused to bear costs for picking up and returning the vehicle after repair which is in breach of the CRA 2015.

3. Claimant alleges the vehicle is neither satisfactory quality not fit for purpose or as described contrary to the CRA 2015. Defendant has refused to repair the vehicle at no further cost to Claimant in line with CRA 2015 with no reason for such refusal.

4. Claimant therefore claims (1) £X,XXX for vehicle cost (2) £XX for diagnosis fee (3) £XXX Court costs (4) £XXX Insurance Costs

Seperately in my LBA I had mentioned 'If you are unable or unwilling to repair the vehicle whilst bearing any necessary costs in doing so, I am legally entitled to reject the vehicle and to receive a refund.'. Do I need to write to the dealer to say that I am now rejecting the vehicle or I can initiate court action straight away?

[des8]

Bit busy at the mo' but will get back to you later

[des8]

Particulars of claim:

At the material time the defendant was J bloggs t/a xxxx, a trader, and the defendant a consumer
On dd.mm.yyyy the claimant purchased a motor vehicle Make & model Reg No xx 00 abc from
the defendant for £XXXXXX
The goods were not fit for purpose, nor of satisfactory quality, and were mis described.
contrary to the Consumer Rights Act 2015
The defendant has ignored the notices of rejection
Accordingly the claimant claims
(a)the sum of £XXXX
(b) additional costs of £xxxxx
(c)court costs
(d) Interest pursuant to section 69 County Courts Act at such rate and for such periods as the court deems just.



All the other details come out in your witness statement later, if the claim is disputed.

[Stanley21]

Thanks. Will look to have it issued today.

Question on insurance costs for example - should that be quoted as 'per day' since I won't know the actual cost as that will depends on how long the case takes?