Buying a car is often a significant purchase, from both a financial, practical, and emotional point of view.
When faults appear soon after collection, it is hardly surprising that questions about refunds, repairs, and legal rights follow quickly. Many consumers ask the same fundamental question: can you get a refund from a car dealership if the car turns out to be faulty after you bought it?
The answer depends on several factors, including how the car was bought, how long it has been owned, and the nature of the fault itself. The same legal principles apply to both new and used vehicles, although what amounts to satisfactory quality may differ depending on factors such as age, mileage and price. Disputes may be handled through independent Alternative Dispute Resolution (ADR) if agreement cannot be reached between you and a retailer via their own in-house complaints process.
At The Motor Ombudsman, we offer a free service for consumers, and we provide impartial information to help you understand the legal rights that apply where a refund is sought following the purchase of a faulty car.
When refunds may be possible
A refund is not available simply because you’re unhappy with your purchase (i.e. you have had a change of heart). In most cases, whether a refund is available for a faulty car depends on whether the vehicle met the legal standards set out in the Consumer Rights Act 2015 at the time it was sold.
Cars supplied by retailers, including dealerships, are required to meet certain standards. They should be of satisfactory quality, fit for their intended purpose, and match the description given at the point of sale.
If a fault indicates that one of these standards was not met, the Consumer Rights Act 2015 sets out the remedies that may be available. These rights apply to both new and used vehicles. However, what amounts to “satisfactory quality” may take into account factors such as age, mileage and price, particularly in the case of used cars.
For this reason, obtaining a refund from a car dealership will depend on the specific circumstances and how the law applies to the facts of the purchase.
How the Consumer Rights Act applies
As outlined above, the Consumer Rights Act 2015 provides the legal foundation for situations where a vehicle is found to be faulty. In practice, it does not guarantee a refund in every case. Instead, it sets out a sequence of remedies that may become available depending on the circumstances.
Timing plays a central role. Your rights are generally strongest in the early stages of ownership, particularly where a fault is identified soon after collection.
In the initial period after purchase, the Consumer Rights Act 2015 allows for the possibility of rejecting the vehicle if it does not meet the required standards. As time passes, the emphasis typically shifts towards giving the dealership an initial opportunity to resolve the issue, most commonly through repair or replacement.
If those steps do not resolve the problem, or if the same fault continues to arise, a refund may still be possible. How these remedies apply will depend on when the fault became apparent, whether it was present at the time of sale, and what attempts have already been made to address it.
The first 30 days after purchase
One of the most widely discussed rights under the Consumer Rights Act is the short-term right to reject. In broad terms, this allows you to reject a car within the first 30 days if a fault is present and request a refund.
This right applies where the fault was present at the time of sale, even if it only becomes apparent after the vehicle has been driven. In practice, this involves informing the dealership of the fault within the 30-day period and clearly stating that the vehicle is being rejected under this right.
Clear communication is important at this stage. The dealership will usually need an opportunity to understand the nature of the problem and confirm whether it falls within the scope of the Act.
The short-term right to reject applies specifically to the initial 30-day period. After this time, the position changes and different remedies may become relevant.
What happens after 30 days
Once the initial 30-day period has passed, the position changes. The dealership is normally entitled to an opportunity to repair or replace the vehicle before a refund is considered.
If a repair fails to resolve the issue, or the same fault continues to occur, a refund may still be available to you. Where a refund follows a failed repair or replacement, the law allows for a deduction to reflect the use of the vehicle. The amount, if any, will depend on the specific circumstances.
This distinction between the first 30 days and the period that follows is often central to discussions about returning a faulty car some time after purchase.Generally, if a defect is discovered within the first six months of purchase, it is evidently presumed that it is an inherent fault which would have been present at the point of sale, and the selling business has the evidential burden of proving otherwise.
On the other hand, if the defect is discovered after the first six months of purchase, then it is evidently presumed that the cause of the defect occurred after the sale, and the consumer has the evidential burden of proving otherwise.
If there is a fault with the vehicle that was deemed to be present at the point of sale and makes it unfit for purpose or not of satisfactory quality, the seller is entitled to one opportunity to repair it. If that repair is unsuccessful, the consumer may then be entitled to reject the vehicle.
If agreement cannot be reached with a dealership
Where you and a dealership disagree about the most appropriate course of action following issues with a vehicle, progress can sometimes feel difficult. In most cases, the dealership’s own complaints process should be completed first, and the business is typically given up to eight weeks to provide a final response.
If the matter remains unresolved after that stage, the issue may be escalated through an independent route such as Alternative Dispute Resolution (ADR). If you have followed the dealership’s internal process may be eligible to raise a complaint about a car dealership [Internal link placeholder: Complaint about a car dealership] for independent consideration.
Alternative Dispute Resolution and The Motor Ombudsman
Alternative Dispute Resolution (ADR) provides a way of resolving disputes without the need for court proceedings. It involves a free and impartial independent assessment of the complaint and consideration of how relevant consumer law and the applicable Code of Practice apply.
We act as an ADR provider for the automotive sector, considering complaints involving businesses accredited to our Codes of Practice. Complaints are assessed against the relevant legislation and the requirements set out in the appropriate Code.
Conclusion
A fault with your vehicle can quickly change how you feel about what was meant to be a straightforward purchase. Whether a refund is available will depend on the timing, the nature of the issue, and how the law applies to the facts of your purchase.
Knowing how these rights operate can make it easier to approach the situation with clarity about what may happen next.
