How to Complain About Being Sold a Faulty Car on Finance

You saved up for the deposit, signed the paperwork and drove away happy. Then the warning lights came on. If your car turns out to be faulty and you bought it on finance, you have more rights than you might think. The trick is knowing who to complain to and when.

Who you complain to

This is the part that catches most people out. If you bought the car on hire purchase (HP) or a personal contract purchase (PCP), the finance company owns the car until you make the last payment. In law, it is the one that supplied the car to you, not the dealer.

Toy car beside a calculator and magnifying glass, illustrating car finance agreements and checking vehicle finance details.

That means your complaint goes to the finance company. You can still tell the dealer, but the lender is the one legally on the hook.

If you paid with a credit card, even in part, Section 75 of the Consumer Credit Act may let you claim from the card provider as well as the dealer. This applies when the car cost between £100 and £30,000.

Your rights under the Consumer Rights Act

The Consumer Rights Act 2015 says goods must be of satisfactory quality, fit for purpose and as described. A used car is judged against its age and mileage, so wear and tear isn’t a fault. A gearbox failing a week after you buy it is a different story.

Consumer Protection Act book with a judge's gavel, representing legal rights and consumer protection when buying a faulty car.

Timing matters a lot:

Within 30 days: you can reject the car and ask for a full refund.

Within 6 months: the fault is assumed to have been there when you got the car, unless the seller can prove it wasn’t. You can ask for a repair or replacement first. If that fails, you can reject the car, though a deduction may be made for the use you’ve had.

After 6 months: you still have rights, but it’s usually up to you to show the fault was there from the start. An independent report helps here.

Making your complaint

Put everything in writing. Say what is wrong, when it started and what you want, such as a repair or to reject the car. Mention the Consumer Rights Act by name.

Keep a file of your finance agreement, sales invoice, adverts, MOT history, messages and any garage reports.

Person selecting a complaints button on a digital screen, illustrating how to make a formal complaint about faulty car finance.

Keep paying your monthly instalments while the complaint is open. Stopping can harm your credit file and give the lender a reason to act against you.

If you are unsure how strong your case is, a specialist in automotive law can look at the facts and tell you where you stand. Every case is different, so it is worth getting advice on your own situation before you take big steps.

If the lender says no

The finance company has up to eight weeks to give you a final response. If it rejects your complaint, or you hear nothing after eight weeks, you can take it to the Financial Ombudsman Service. It is free to use, and you normally have six months from the final response to refer it.

Customer and finance adviser discussing vehicle finance options with model cars, paperwork and a calculator on a desk.

The ombudsman looks at the evidence from both sides and can order the lender to put things right. That might mean taking the car back or covering repairs.

Act fast, stay calm

The sooner you raise a fault, the stronger your position. Don’t sell the car or have big repairs done without telling the lender first. Most complaints are settled long before they reach the ombudsman, and a clear, early complaint is often the quickest route to a fair result.

Discover why Crave is a top lifestyle magazine UK readers follow for delicious recipes and travel ideas.