Car Rejection - £70k car

[HorseyTrain]

Hello,

Purchased a (23 month old) premium brand, manufacturer approved used car, October 2022 for approx £70k.
Car is financed via the manufactures finance company and I believe (TBC) I paid some deposit via my credit card, likely £500.

I noticed minor drivetrain faults almost immediately.
I notified the dealer on day 31 via telephone and made a booking for warranty work. I made a formal complaint in writing in December 2022 (approx 2.5 months after taking delivery) - this highlighted the drivetrain issues in writing.

Fast forward to today and the issues have become worse and the car has been back and forth with multiple and repeated attempts to resolve the drivetrain issues. This time around the car has been with the dealer since April 2024 (4 months and counting). They’ve changed numerous parts and eventually the gearbox itself which has not resolved the issues whatsoever. The dealer and manufacturer do not have a diagnosis and are unsure how to fix it.

I entered a buy back conversation with the dealer, which has failed as the dealer was unable to offer my settlement figure - which was return of my deposit in full. The dealer offered 25% of my deposit.

I am now at the position where I need to escalate to rejection and involve the finance company etc.

Should I be rejecting based on first 6 months right to reject on CRA 2015 as I notified them of the fault from day 31?

What refund can I expect? Is the following correct:
- deposit
- all finance payments in full
- simple interest (8%)
- item costs (service, tyres etc) minus reasonable lifespan usage
- minus fair usage (18p per mile based on excess mileage in finance agreement)

Based on the above, my costs are calculated just shy of £30k.

From what I understand the dealer has already included the Manufacturer and Finance company for contribution so they should be aware. However, I have not informed them (which I will do tomorrow).

What are my next steps?

Thanks in advance.

[Pezza54]

Hi
Welcome to LB
As you did not report the fault until day 31, you lost your right to short term rejection under the CRA
Under the final right to reject the dealer must be given one chance to fix the fault. You have done this and the dealer has failed.
You are legally entitled to reject the car and the dealer can deduct for usage from the refund (usually based on mileage)
Hopefully you have made diary notes of all the dates the car went back to the garage and how long before you got the car back. You will need these dates for a claim
Under CRA the consumer can claim damages for a breach of contract. This may include, for the times you were without the car, public transport costs, taxis, hire car. Many garages provide the consumer with a courtesy car to reduce any claim for damages. You haven't said if you have been provided with a courtesy car nor have you listed any costs of alternative transport
You can claim for any inspection reports but not maintenance work.
Interest will be very difficult to calculate
The finance company is the owner of the car so you should write to them stating you are exercising your final right to reject the car due to the breach of the CRA 2015. Point out the ongoing fault that has not been successfully repaired and provide the numerous dates it has been returned to the dealer.
If you are not satisfied with the reply you can refer your complaint to the Financial Ombudsman. This is a free service and the final decision is legally binding on the company

[HorseyTrain]

Hi
Welcome to LB
As you did not report the fault until day 31, you lost your right to short term rejection under the CRA
Under the final right to reject the dealer must be given one chance to fix the fault. You have done this and the dealer has failed.
You are legally entitled to reject the car and the dealer can deduct for usage from the refund (usually based on mileage)
Hopefully you have made diary notes of all the dates the car went back to the garage and how long before you got the car back. You will need these dates for a claim
Under CRA the consumer can claim damages for a breach of contract. This may include, for the times you were without the car, public transport costs, taxis, hire car. Many garages provide the consumer with a courtesy car to reduce any claim for damages. You haven't said if you have been provided with a courtesy car nor have you listed any costs of alternative transport
You can claim for any inspection reports but not maintenance work.
Interest will be very difficult to calculate
The finance company is the owner of the car so you should write to them stating you are exercising your final right to reject the car due to the breach of the CRA 2015. Point out the ongoing fault that has not been successfully repaired and provide the numerous dates it has been returned to the dealer.
If you are not satisfied with the reply you can refer your complaint to the Financial Ombudsman. This is a free service and the final decision is legally binding on the company

Thank you for your response.

I was provided with a courtesy car in most cases - one which I still have. As part of the rejection letter, I have offered a return of their courtesy car should they want it. I have accepted I will be without a car for some time now.

RE: Costs, should I expect the deposit and all finance payments back (minus usage) or is it literally the purchase price of the car I'll get back (meaning I'll have to sort the finance etc from it).

I have calculated fair usage using the exact milage from the start of contract until the last recorded mileage when the vehicle went into the dealer last. I've multiplied the total mileage by 18p per mile (figure from the finance agreement excess milage clause).

Interest I have documented EVERY payment date in a spreadsheet and added 8% simple interest from the date of the payment, to today (which will roll until settlement, basically) - over £6 in interest per day and totalling approx. £3k so far.

I have full documentation of visits and a timeline: 6+ different visits in total with 150+ days combined (and counting as they still have the car). Works out about 25% of the ownership the car has been with the dealer.

[Pezza54]

You should get back all payments you have made (deposit plus loan repayments) less a deduction for usage
You bought a high prestige car - is your courtesy car of similar age and quality?
If not, driving around in a car of lower standard for 25% of the time (150+ days) must be worth putting in your claim. I'm not sure how to calculate this part of your claim
I suspect you would have to make a court claim to be awarded interest. I doubt the finance company will agree to pay you interest. Interest is what they are wanting to charge you

[HorseyTrain]

Thank you again. Most helpful.

Arguably (and I'm not going to argue) the courtesy cars have been of similar cost. Not my car and I've disliked some of them, especially the one I'm in now. But the dealer has been good in that respect.

Re: interest costs, it's a concession I could be willing the make. In all honesty, I don't want the full £30k. I just want enough money to get me back into a similar car for a similar monthly figure. I'm hoping the rejection gives them the shock to settle at that reasonable figure.