Rejecting a faulty vehicle

[SEAClouds]

On 28/9/23 I bought a van from a dealer for £10,995. It was 10 years old and had done 92k miles. It was advertised by the dealership as good condition and supplied with a new MOT.

On 28/10/23 the gearbox broke so the van was not drivable, I had only driven 300 miles in it. I reported this to the dealer who arranged for a mechanic to look at it. The mechanic inspected the vehicle on 31/10/23 and told me to reject the vehicle. I rejected the vehicle via email and the dealer replied that a refund was not an option but that he would repair the vehicle if I shipped it back to him at my own expense.

On 7/11/23 I shipped the van back to the dealer who then became very non-communicative. He eventually got back in touch to say it would be ready for collection on 5/1/24, two months later. I caught the train to the dealership and drove the van back.

On 8/1/24 the gearbox failed again after just three days. I reported this to the dealer and he didn't respond so the following day I wrote again requesting a refund.

On 19/1/24 the dealer sent a letter from his solicitor stating that I was not entitled to a refund as it was a van for commercial purposes. I explained that I had not bought it for commercial purposes but for camping. He revealed a checkbox on the sales contract that I had not noticed which he ticked that states the van was bought for commercial purposes.

On 12/2/24 the dealer sent another letter from his solicitor stating that if I return the vehicle to him again at my own expense he will consider a form of 'sales contract rewind'.

I have asked him to clarify what he means by a 'sales contract rewind' and stated I will accept £10k refund to allow for some wear and tear. I am not confident that shipping the van back to him again at my expense will solve the problem. He will then have the vehicle and my money and I don't trust him. I have since bought another vehicle so I no longer want this van and would like my money back. Any advice would be very welcome.

[Pezza54]

Hi
What date did you take delivery of the vehicle or pick it up from the dealer?
What date did you first report the gearbox fault to the dealer?
How did you pay?

It is the dealer's responsibility to prove that you bought the van for commercial purposes. You stated the dealer ticked the box on the sale contract about the van bought for business use. Did he speak to you about this and ask you the right question or did he just pass you the contract to sign and gave you the impression he was in a hurry?

You would have a much stronger claim as a consumer under CRA 2015 if the dealer cannot prove you bought the van for business use

Although the van is old and high mileage under CRA short term right to reject or final right to reject the law considers a serious defect such as gearbox failure to be present at the time of purchase, even though there was no indication at the time.

Under the final right to reject the dealer can make a deduction on the refund for usage, normally based on mileage

[Pezza54]

Does your insurance certificate for the van only state private use, social domestic and pleasure? Hopefully it does and this will be your proof that you did not buy the van for commercial use.
If the dealer ticked the box and did not discuss what you intended to use the van for then he may be in breach of the Consumer Protection from Unfair Trading Regulations 2008
You can read about these regulations at www.which.co.uk

[SEAClouds]

Thank you for your help.

I took delivery of the vehicle on 28/9/23 and reported the gearbox fault on 28/10/23, i.e. 30 days from taking possession. I had only driven 300 miles. The dealer arranged for a mechanic to inspect the vehicle who did so on 31/10/23, which is when I explicitly rejected the vehicle by email but was refused a refund.

I paid using a bank loan which I took out just to buy the vehicle.

The dealer completed the sales form for me to sign, it is all his handwriting except for my signature. I didn't notice the checkbox stating that the vehicle was for commercial purposes. He is stating that I am not covered by the CRA 2015 because of this. My insurance documents state it was just for personal use.

[Pezza54]

Thanks for the info
Is there anything in the contract, the advert for the van, the dealer's website or a sign in the dealer's office that states "Vehicles sold on trade terms only" or words to that effect?

[SEAClouds]

No. They also sell cars which are non commercial. The only indication is in the marketing that states the 'fastest growing commercial retailer in the area' but there is nothing to state that they only sell on trade terms, it is just the checkbox that he ticked on the form. It is annoying as I had already explained it was for personal use. The logbook is my home address, I paid with a personal bank account, the insurance is for personal use only, and I don't own a business.

He also checked a box that states if I reject the vehicle I must return it before getting a refund and he is refusing to do anything until I ship it back to him. I have already done this once and his repairs did not fix the gearbox. I am concerned that if I ship it back again he will say it is a different fault or something to prevent me getting a refund.

[Pezza54]

You have the evidence that you bought the van as a consumer. The dealer should have made it clear to you that when he ticked the box he was selling it on trade terms and you did not have consumer rights. He failed to do this so he maybe in breach of consumer regulations as post 3

The dealer should also have made it clear that you would be responsible including the cost for returning the van to his premises. You said he just ticked the box without mentioning anything about this. You should add the transport cost to your claim. Did you return it to his premises or a separate garage?

You reported the fault on the 30th day after taking delivery and agreed that the van should be repaired by the dealer. You returned the van as soon as you could arrange transport. The dealer had the van for 2 months and 3 days after you picked it up the gearbox failed again.

Under CRA the consumer is allowed 7 days after the vehicle is returned to find out if the fault has been fixed. The fault reappeared within 7 days so you were still within your short term right to reject and you confirmed this when you wrote requesting a refund.

You should write again to the dealer, pointing out all the above, and state you are exercising your short term right as a consumer to reject the van. Also state the vehicle is available for collection and you are not prepared to transport it again and expect a full refund within 14 days after collection

There is always a downside. If the dealer refuses rejection and you end up making a court claim the claim over £10k will be allocated to the fast track. This means if you lose the case you will be liable to pay the defendant's legal costs. To avoid this financial risk and the time it takes to reach a court decision you should consider negotiating with the dealer

[SEAClouds]

Thank you so much for your help. I have already tried negotiating with the dealer but he refuses to do anything until I have returned the vehicle to him again. It feels a bit of a stalemate on that score. What if he states that the gearbox failure is two separate faults? Would you advise keeping my claim to a £10k refund to not have to be allocated to the fast track and risk paying his costs? Surely my case is pretty sound and the risk of losing is low? Is it common that by simply beginning a court claim the dealer then realises I am serious and backs down? It is all so stressful and he clearly has experienced solicitors on his side and is used to doing this, I am not.

[Pezza54]

It doesn't matter under CRA if it is not the same fault.
Nothing is guaranteed in court. Your claim will fail if the judge decides you should have read the contract in detail before signing and as you failed to mention the ticked box you accepted you were not a consumer
Definitely less financial risk if you make your claim under £10k
You would have to base your claim on the final right to reject and make a reduction for usage to reduce your claim under 10k.
The problem with this is you have only had use of the car for about 30 days and did very little mileage.
It is unlikely the dealer will back down after you start a court claim. Delays in county courts are increasing. The 3 worst courts have delays over 420 days. The solicitor is probably aware of this and will draft a short defence arguing that you did not buy the van as a consumer

[SEAClouds]

Thank you for your advice.

[SEAClouds]

If the dealer just keeps refusing to cooperate or offer any refund then do I have any option other than the courts?

[Pezza54]

If your not prepared to risk any form of court action and do not now want to repair the van yourself (you have bought another vehicle) then the 2 options are:
1. Contact the dealer again to find out what "rewind the contract" actually means. If he comes up with a refund figure, you could try to negotiate it upwards, otherwise accept it. Make sure you get this from the dealer in writing and reply confirming your acceptance
2. Sell the van as is to a garage

[SEAClouds]

Thank you. I will see if I can get a refund figure. If not then I am prepared to go to court as it is such a lot of money.

[SEAClouds]

The dealer has replied stating that if I return the vehicle I will be reimbursed MINUS costs incurred, additional damage or services provided. The vehicle isn't damaged in any way and I'm not aware of any services provided. I am happy to return the vehicle and be reimbursed if I have an acceptable sum. I'm concerned that if I send it back I will be offered a tiny amount and then I won't even have the vehicle! I have been given 14 days. Is this normal?

[Pezza54]

If a consumer rejects a car under CRA and the dealer picks up the vehicle, then the consumer is reliant on the dealer refunding money within 14 days
If the dealer fails to refund any money or insufficient money then the only recourse for the consumer is to make a court claim.

You are in this position and it is your decision to make.

You do have a solicitor's letter which you should keep as evidence if needed

It is yourself who has incurred expenses, shipping the car twice. Keep that total figure back as a bargaining tool for any future negotiation with the solicitor or dealer