Your Consumer Rights When Buying a Vehicle: Key Differences Between Dealers and Private Sellers

When purchasing a vehicle, whether from a dealer or a private seller, it's crucial to understand your legal rights to ensure a smooth and legally protected transaction.

In this article, Jennifer Eaton, Legal Assistant in our Litigation and Dispute Resolution team at Warner Goodman, outlines the key differences in consumer rights when buying a vehicle from a dealership compared to a private seller.

Buying a Vehicle from a Dealer: Your Consumer Rights

In England & Wales, car dealers are required to follow consumer protection laws that offer buyers substantial rights. These protections ensure the vehicle you purchase meets quality, functionality, and description standards.

The Consumer Rights Act 2015

The Consumer Rights Act 2015 provides essential protections for consumers when purchasing vehicles from a dealer. The law requires that any vehicle purchased from a dealer:

• Must be of satisfactory quality: The vehicle should be free from defects, in good condition, and meet general expectations.
• Must be fit for purpose: The vehicle should perform its intended function. For instance, it should run properly, be safe, and have no significant mechanical issues.
• Must match the description: If advertised with specific features or conditions, the vehicle must match these claims.

If the vehicle doesn't meet the above criteria, you have the right to reject it within a short-term period and should be entitled to a refund minus any mileage incurred. If issues arise after the first 30 days but within six months, it is the dealer's responsibility to prove that the car was not faulty at the time of sale.

If faults emerge after 30 days, you should request that the dealer repair the vehicle or provide a replacement at no additional cost. If the issues persist, you are entitled to a refund minus any mileage used.

Warranty and Repairs

Most dealers offer a warranty on vehicles sold, which can vary depending on the dealer and the type of vehicle. While warranties are not required by law, whether you have a warranty or not, you will still be protected under the Consumer Rights Act 2015.

Misrepresentation

If a dealer makes false claims about a vehicle's condition or features, you may have grounds for a claim under the Misrepresentation Act 1967. In such cases, you can seek compensation or cancel the contract.

Buying a Vehicle from a Private Seller: Your Legal Rights

When purchasing a vehicle from a private seller, your rights are more limited. However, some protections still apply.

The Sale of Goods Act 1979

Private sales are typically governed by the Sale of Goods Act 1979. However, these laws offer less protection in private sales, meaning the vehicle is not required to be of satisfactory quality or fit for purpose.

As a result, if the vehicle is faulty, you generally won't have the same rights to request a refund, repair, or replacement unless there has been a clear misrepresentation of the vehicle's condition.

Misrepresentation

If a private seller has made false claims about the vehicle, such as stating it has never been in an accident or falsely advertising certain features, the law allows you to claim damages or cancel the contract under the Misrepresentation Act 1967. You must, however, demonstrate that the seller intentionally misrepresented the vehicle's condition and that you entered into the agreement as a result of this statement.

If the seller has been honest but undisclosed issues arise with the vehicle, you are generally not entitled to a refund or compensation.

No Cooling-Off Period

There is no statutory cooling-off period for vehicles purchased from private sellers. Once the transaction is complete, it is final, and any issues that arise post-sale are the buyer's responsibility to address unless there has been a clear misrepresentation.

The "Sold as Seen" Clause

Many private sellers sell vehicles with a "sold as seen" condition, meaning the seller makes no guarantees regarding the vehicle's condition. While this doesn't completely absolve the seller of responsibility, it shifts a greater burden onto the buyer to thoroughly inspect the vehicle before purchasing.

Tips for Protecting Your Rights When Buying a Vehicle

Whether buying from a dealer or a private seller, taking precautionary steps to protect your interests is essential.

Here are some practical tips to keep in mind:

• Obtain a full history report: This is especially important for private sales. A history check can reveal key details about the car's previous ownership, any mileage discrepancies, and whether it has been written off or stolen.
• Review the contract: If purchasing from a dealer, ensure the terms of the sale are clearly stated in writing, including details about warranties or return policies.
• Be cautious of "sold as seen": When buying privately, ensure you fully understand what the seller means by this term. If the seller is unwilling to provide any assurances about the vehicle's condition, it may be wise to walk away from the deal.

Conclusion

The rights you have when purchasing a vehicle as a consumer vary significantly depending on whether you buy from a dealer or a private seller.

Dealers must comply with stringent consumer protection laws that provide considerable protection for the buyer, including guarantees that it is fit for purpose and quality. In contrast, private sales are more "buyer beware," with fewer legal protections in place.

Understanding these differences will help you make informed decisions and better safeguard your interests when buying your next vehicle.

Get in Touch

For more information or assistance with disputing a faulty vehicle claim, please contact Jennifer Eaton and our Litigation team on 023 8063 9311 or email enquiries@warnergoodman.co.uk.