Rejecting a car on finance: why the claim goes to the finance house, not the dealer

Returning a car on finance due to faults, UK rules: how a rejection is made

1. The short term right to reject lasts 30 days. Under the Consumer Rights Act 2015 goods must be of satisfactory quality, fit for purpose and as described. Section 22 gives a short term right to reject within 30 days of the goods being delivered, and exercising it entitles you to a refund. The clock pauses while the trader attempts a repair you have agreed to, which matters because a garage that keeps the car for three weeks can otherwise consume the whole window.
2. After 30 days you get one repair, then rejection. Beyond the initial period the trader is entitled to one opportunity to repair or replace. If that fails, or is not done within a reasonable time and without significant inconvenience, you can reject for a refund, which may be reduced for use after the first six months. Faults appearing within the first six months are presumed to have been present at delivery unless the trader shows otherwise, which puts the burden where it belongs.
3. Address the claim to the finance house in writing. Write to the lender named on the agreement, say you are rejecting the vehicle under the Consumer Rights Act 2015, describe the fault, the dates and what you have already asked the dealer to do, and say what you want. Keep paying the agreement while the claim runs unless the lender agrees otherwise, because arrears create a separate problem that will outlive the dispute.
4. A rejection is not the same as cancelling the finance. If the rejection succeeds the agreement is unwound and you recover what you have paid. Withdrawing under Consumer Credit Act 1974 s.66A within 14 days is a different right, exercised for any reason, that leaves you owing the credit. Voluntary termination under s.99 is a third route that is not a complaint at all. A faulty car claim should be put as a quality claim, because that is the one that gets your money back.

Common questions

Who do I claim from if a financed car is faulty?

The finance house. On hire purchase and PCP the lender buys the car and supplies it to you, so it is liable for quality under the Consumer Rights Act 2015.

How long do I have to reject a faulty car?

The short term right to reject runs for 30 days from delivery under s.22, paused while an agreed repair is attempted. After that the trader gets one repair attempt before you can reject.

Should I stop paying while I complain?

No. Keep the agreement up to date unless the lender agrees otherwise. Arrears damage your credit file and survive the outcome of the dispute.

Cancelling car finance due to faulty car: is rejecting the same thing?

No. Rejection unwinds the agreement because the goods were faulty. Withdrawal under s.66A is a no reason right in the first 14 days that still leaves the credit repayable.

Car on finance engine blown: who is liable for a major fault?

The finance house, not the garage that sold it, because under a regulated agreement the lender supplied the goods. Under the Consumer Rights Act 2015 the car has to be of satisfactory quality, and a failure of that size on a recent purchase is the clearest case there is. Within 30 days of delivery section 22 gives a short term right to reject; after that the trader gets one opportunity to repair, and if it fails you can reject. Write to the lender named on the agreement, not to the dealer alone.

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