Right to Reject - Car on Finance

[Dannash]

Hi all,

I’m hoping someone can give me some advice on how best to proceed with my right to reject. I bought a used car from a dealer on 12/02/2020, I made the 240mile drive home with no issues, I drove 3 miles to work the following day and then went to leave work, I put the car in reverse and the car went in to limp mode, the engine light came on and ECP ( might have been EPC) lit up on the dash. I managed to limp the car to my local garage who was able to run diagnostics on the car, this returned 20+ fault codes, they managed to clear this but one in particular kept coming up, this was put down to a faulty relay, at this point it was too late in the day to get any replacement parts. The following morning my garage went in to the fuse box so they could could get the relay serial number and found the fuse box completely full of water, there was severe rust and corrosion and the water was red, the ECU has corrosion on the bottom and so does the wiring loom. My garage says that severity of this means the water has been in here for quite some time.

I spoke to the dealer immediately who said it’s above their pay grade and no managers are in and to call back on Monday 17/02/2020. I contacted them on this day and they said they won’t do anything until an “independent” inspector has had a look at the car. This inspection didn’t take place until Wednesday 19/02/2020, and we was told the report would take 48 hours.

in the meantime I had notified my finance company of the issue on 18/02/2020 who explained I could reject the car and they would “back me to the hilt” however reading the reviews on said company seem to suggest otherwise. at this point I had left the finance company undecided on if I wanted to proceed with this or repair.

i spoke to the dealer again on 24/02/2020 to again chase the outcome of the report, to which they said they still hadn’t read it. I spoke to the inspectors directly who are claiming I have caused the damage to the car. The dealer state “I don’t care what the report says, we’re arranging for the car to be returned to be repaired” from speaking to the garage where my car currently is they state that this damage could cause untold problems at any time due to it being the electrics and could run in the thousands of pounds in repairs in the future. the dealer had arranged for a receiver truck to pick the car up on 25/02/2020.

i spoke to my finance company on 24/02/2020 and notified them verbally that I wish to reject the car. They have opened a complaint for me but not given much after that, they have asked I provide a report from the garage holding my car and had me confirm that no repairs have taken place on the car, which is the case. No repairs have been carried out. I have contacted the garage who have agreed to provide me with a report, pictures and an invoice for their costs of diagnostics.

I spoke to the dealer again to confirm I was going forward with my right to reject, to which they responded they will cancel the recovery truck for the repairs. I then proceed to get a call from the independent inspector asking if the vehicle is available for collection for the repairs, to which I responded I thought that had been cancelled due to me rejecting the car. The inspector said I needed to provide written confirmation of this to the dealer. I informed them I had notified my finance company who as far as I am aware would notify the dealer in written format.

What do I need to do from here? Will I need to notify the finance company in written format of my intention to reject the car, and can this be done via email when I provide the garages report? Do I need to notify the dealer as well, or would this be done by the finance? And who is liable to return my car that I part exchanged?

some additional information - when the ECU is moved to inspect the fuse box, the car then doesn’t start for a couple of hours, leading my garage to believe the ECU is damaged too. When I bought the car it included documentation of an inspection highlighting that all areas they checked were “green” and working. I mention this as one point they inspect and check is the rear windscreen wiper/washer. As soon as I got home I opened the boot and noticed a lot of water running out of the boot lid from inside the plastic lining, I tested the rear windscreen wiper and sure enough no fluid came out on to window but appears to be filling up inside the boot lid - the dealer was also notified of this

i really hope someone can help and steer my in the right direction, thanks for your help in advance.

[des8]

Just confirm in writing (email sufficient but send read receipt) to both finance house and dealer that you are rejecting the car within the thirty day period and you do not request nor agree to a repair. (not strictly necessary but good to have a paper trail!)
You require a full refund plus cost of diagnostic report proving the car was unsatisfactory when delivered.
Add that the vehicle is available for collection at XYZ at dealers cost.
All as per Consumer Rights Act 2015

[Dannash]

Thank you! I shall get that sent across to them today. Do you know who would be liable for the car I part exchanged? The finance say it’s down to the dealer, but from what I’ve read elsewhere I’m not entitled to the car back but the finance should refund the full amount given for it?

[des8]

If you traded in your previous vehicle and it is still available you might recover it, otherwise* you should have refunded the full invoice value of the new car (including road fund, vat etc)

[Dannash]

Thank you

[Dannash]

Hi,

as expected the dealer are having none of it, should I be concerned with what they are saying? Or is this matter solely down to the finance company to resolve?

this is the email I have received, how should I I proceed? The level of rust and corrosion alone shows this is a long standing issue.

Having referred to the records held by Dealer we can confirm that the vehicle was presented to and accepted by yourself on the 12th February 2020. The decision was then taken by yourself to proceed with and complete the purchase following a brief demonstration of the vehicle. Prior to this the vehicle was subjected to a full pre-delivery inspection. None of the faults since reported were present at this time and the vehicle could only be considered of satisfactory quality given the age and recorded mileage. It would also appear that since the vehicle was driven from Dealer to Home immediately after the completion of the sale the vehicle performed satisfactory at this time.




On the 14th February 2020 we were contacted by yourself in relation to an issue you had reportedly experienced. Given the proximity to the time of sale we opted to commission and engineer to inspect the vehicle. As per the findings of your nominated repairer; Garage; the engineer did find evidence of water in the under-hood electrical centre. The engineer also confirmed however the presence of debris and a water "tide" mark consistent with damage caused by flood waters.




Clearly the above concern would be considered damage which has occurred whilst the vehicle was in your possession. We would therefore kindly refer your attention to CRA 2015 S19 (15) which clearly states that if it is established the goods confirmed to contract on the date of sale (as per the aforementioned pre-delivery inspection) it is taken that the short term right to reject could not validly be exercised. For this reason the supplier would be unable to accept your purported rejection of the vehicle.




As per our previous discussions the vehicle will need to be returned to Dealer in order for a full inspection and further investigation to be undertaken. We will then advise further on the most appropriate course of action regarding this matter; however we would recommend that you notify your road risk insurer of this matter.




We trust the above clarifies our position on this matter.

[Dannash]

Actually, this email was from the “independent” inspector, not the dealer

[des8]

Have you yet received the report from your own garage referred to in post 1?

[Dannash]

I have indeed, I’ll attach it. This was included on the email I have sent them

I

[des8]

So you now write back and tell them that if they do not accept your rejection within the next seven days you will initiate a county court action without further reference to them.
Send to dealer, and also advise finance company.
Only if you are prepared to sue them!

As a matter of interest what vehicle, age and cost.

[Dannash]

Thank you, my finance company haven’t responded yet, should I wait for them to respond first?
vehicle is a 12 plate Audi A4 Avant £9500

i really appreciate your help with this!

[Dannash]

Should I also quote this

Sec 19 Consumers rights to enforce terms about goods

(14)For the purposes of subsections (3)(b) and (c) and (4), goods which do not conform to the contract at any time within the period of six months beginning with the day on which the goods were delivered to the consumer must be taken not to have conformed to it on that day

[des8]

Should I also quote this

Sec 19 Consumers rights to enforce terms about goods

(14)For the purposes of subsections (3)(b) and (c) and (4), goods which do not conform to the contract at any time within the period of six months beginning with the day on which the goods were delivered to the consumer must be taken not to have conformed to it on that day

No, do not mention that as it only applies to the final right to reject (sections 3b & 3c), not the short term right to reject.
You need to prove the faults were there when the car was purchased, hence the need for that report from your garage.

Just a polite note to the finance house telling them the dealer has not accepted your rejection, but you have given them a further 7 days to reconsider.
If you do not hear from dealer or finance house within that time you will initiate county court action without further reference