Dealer rejecting car on finance

[Milz2]

Hi everyone,

First post here!

Please, please I need some advice.

Back in September, I purchased a used car (on finance) from an independent dealership with 3 months warranty - my only ever car on finance as well, argh. Anyway, 6 days later the camshaft pulley falls off...dealership RELUCTANTLY agrees to pay despite asking me if I could help knock a few quid off when I speak to the mechanic. Obviously I couldn't do this and on a £14k car I wasn't exactly willing to p*** the mechanic off! At this point, I'm obviously very annoyed but thankful work was done quickly etc. Cars back on the road...

Fast forward to this week and the car (an automatic Audi) starts to STALL, jolts in D and R and revs high on acceleration but doesn't move off - takes a while to get going then jolts forward. Especially dangerous let alone on junctions hills etc. I recorded my partner (who is a driving instructor) driving as evidence of how the car presents. That same day, I asked the garage who had fixed the other fault if he could take a look to see if he could diagnose the issue. I told him my concerns, showed him the video and he got the car on a ramp where he diagnosed a mechatronic gearbox fault. He informs me it's ok to drive home but not to go anywhere after this. I drive it home and decide to call the finance company the next day to inform them of the issue (it was 7pm when I got home and they were closed).

When i phoned the finance company they advised I need to email them the issues experienced etc. Did that and they also advised they would liaise with the dealership on my behalf (I have a newborn baby and I was already stressed) so they would contact them. I sent supporting evidence incl the video of the car pulling away. I also suggested 2 options. 1 being the car needs to be repaired OR I will be rejecting the car due to this now being the 2nd issue in less than 2 months. 2 days later, the dealership responded to say they are refusing my rejection for the car as the vehicle has done 2000 miles since I have owned it, they also say that MY PARTNER must have caused the gearbox damage if he is"driving it the way he is on the video".. again, my partner is an advanced driving instructor he knows how not to and how to drive a car they said they would be willing "as a kind gesture" (baring in mind it's still under their warranty..) to offer a mere £800 towards the repairs. The repair is estimated to cost around £4k. I am beyond livid.

Where do I stand legally with this?? It may be worth noting we have no warranty paperwork to check through T&Cs. Upon further investigation into the dealer, we discovered several "hidden" reviews of customers complaining re service history. I've just checked our service history which is not full, as mentioned in advert but also inconsistent and it's basically been filled out by the same person with random dates and mileage that certainly don't add up!

Thank you if you got this far and thank you also in advance, I appreciate any replies!

[Pezza54]

Hi
Under CRA 2015, if a serious fault develops with the car after 30 days from delivery and within 6 months, the customer is entitled to a free repair or replacement.
The gearbox failure is clearly a serious fault. You have sent evidence about the fault to the finance company. The dealer is refusing to repair the fault. You should write to the dealer pointing out your rights under CRA, that he should repair the fault within a reasonable time or offer a suitable replacement. Otherwise you will reject the car and make a court claim if necessary. You should give the dealer 7 days to reply and send a copy of your correspondence to the finance company.
In the meantime you should obtain a written report about the gearbox if you haven't already got one.
It is up to the dealer to prove that the fault was not present at the time of delivery. Trying to blame your partner for causing the fault on an automatic gearbox is pathetic.
If you end up rejecting the car the dealer is entitled to make a reduction on the refund for the 2k miles driven

[Pezza54]

I should have asked if the car was used to carry out a business?

[Milz2]

Thank you for this Pezza54, really appreciate your response and this is similar to what I believed my rights were. The car was not used to carry out any business. My partner has his own vehicle for driving instructor purposes.

[Milz2]

Sorry just to add to this - if they continue to refuse repair/offer a replacement then I would be financially at a loss due to the reduction in miles etc. He has since said 65p a mile would be deducted as well as any scuffs, scrapes etc so £1300 essentially as well as a £250 admin fee charged to myself (the car is in exactly the same condition as we bought it which wasn't perfect but at the time I was happy with this) I am just concerned they would have it back and it would be a case of he said she said because they have been an utter nightmare to deal with already.

[des8]

that is the highest deductible per mile ever.
Generally they try and get away with 45ppm, but it should be around 10ppm to 15 ppm

... and he cannot charge an administration fee.

[Milz2]

Thank you - am I right in thinking the admin fee would fall under CRS Section 20 (17)? In preparation to add to my lengthy email I am preparing over the weekend. As we are liaising via the finance company, I am hoping they are seeing right through all this. I just seem to be the one doing all the work re rights etc. Argh!

[Milz2]

CRA*, apologies

[des8]

I would not deal with the trader at all.
The owner of the vehicle is the Finance company, you are just the registered keeper.

Nor would I be negotiating, nor sending lengthy emails (it only gives them points to argue over)
The trader seems to have refused a repair or replacement, only offering a pittance towards repair costs.
Having been refused a repair or replacement you are entitled to reject the vehicle, and that is what I would be doing.

I would be writing to the finance company confirming the position, rejecting the vehicle and requesting a refund.
I would be telling them that if I did not receive a response I deemed satisfactory within two weeks from receipt of the letter I would initiate a court claim without further reference to them.

Others might have a different view, but traders and finance houses will do everything possible not to refund as that is not profitable.

[des8]

Thank you - am I right in thinking the admin fee would fall under CRS Section 20 (17)? In preparation to add to my lengthy email I am preparing over the weekend. As we are liaising via the finance company, I am hoping they are seeing right through all this. I just seem to be the one doing all the work re rights etc. Argh!

yes.

[Milz2]

Thank you. I appreciate your point re not sending lengthy emails etc but it would be in response to the dealers last email that I am dissecting. As an example, he has stated we have caused the fault etc, we also haven't done over 2000 miles in the vehicle (evidenced through MOT cert vs current mileage) and I'd like to reference my rights as above to show I do slightly know what I am talking about. This may prompt a more satisfactory resolution with the potential of avoiding court which, of course, I'd wish to avoid unless I had to.

Re the 65ppm, I would assume this is set by the dealer and would be difficult to argue? It's a shame there seems to be no legislation covering the max deductions. This is where they will try and sting me..

[des8]

It is the finance company who are liable to you.
If you start arguing the nitty gritty with them you run the risk of delaying any settlement.

The important point is that the vehicle suffered a major problem some two (?) months after you took delivery.
The statute deems that such a fault was present when the vehicle was delivered, and thus unsatisfactory
The supplier therefor has breached the contract
The supplier has refused to repair or replace
You thus have the right to reject the vehicle, which you are now exercising

There is no need to argue his points, which are raised as red herrings, but I can understand why you want to.
If you must, I would suggest just a "flat denial and where is his proof" and the vehicle is rejected and available for collection at XXXX

Whilst dealer might want to charge a ridiculous 65ppm you can successfully challenge that, in court if necessary.


If it comes to initiating a court claim, there are certain steps you should take before commencing the action.
One of these is issuing a "letter before action" warning you are going to court .
With one party (the dealer) already showing signs of being uncooperative, I would show them from the beginning that I was serious about enforcing my rights by giving them the LBA.

[DE DOGS]

I frequently see these problems arising with second-hand cars, people spend large amounts of money and to me seem to walk blindly through these deals.Now i have nothing to gain by pointing out why you do not invest a full report on any car backed up by the AA who I understand will issue a full report on the defects.

[Milz2]

De Dogs, I didn't walk blindly into anything. I would not have bought a car knowing that out of the 48 days I've owned it, I've only been able to drive it for 38 of those. I purchased a car, as advertised, through a trusted dealer that is a part of the AA scheme. It is only after purchase that these serious issues have occured.

The service history has now been confirmed to be falsified. The cars value has now plummeted after this discovery. I could not and would not accuse them of directly being a part of this however, the stamps are all within the same vicinity of the dealership whilst the car was located over 200 miles away at the "dates of service".

This now opens up another can of worms..

[Milz2]

Update on this - I was finally allowed to reject the car on 15/2/2024 after the finance company accepted that the fault was present at point of sale. I was allowed to purchase not only a faulty vehicle but a dangerous one, at that. The car was diagnosed with several faults, one being a major gearbox fault and all of which were known to the dealer who has conveniently now seized trading.