Your Rights when Buying a New Car
Wherever you buy
Whether you're buying brand new or you're after a used car, the best advice is, don't sign or pay anything until you're absolutely happy. Make sure you're satisfied that your chosen car is mechanically sound and there are no outstanding issues or third parties involved. For example, a car bought with a loan or on hire purchase belongs to the finance company until the loan is paid off.
Dealers
Dealers are generally the safest route to a new car. You'll get the maximum legal protection with the least risk. The dealer must have the right to sell the car, so check all the documentation is in order.
For less than the price of a tank of fuel and for extra peace of mind, you could run an AA Car Data Check on a used car. Just the registration number and the vehicle identification number (VIN) can tell you if the car has been stolen, has been written off by an insurer or even has outstanding finance. Note that we cannot let you know if the car is a third-party or self–insured write off.
Check that the car fits the seller's description and its history or condition is not misleading. It goes without saying that the car must be suitable for all the demands claimed for that model. This includes any particular purpose that you tell the dealer about before you buy, or which the dealer has advertised or gleaned from your conversation.
Of course the car you're considering must be of 'satisfactory quality', unless you're made aware of any specific defects before you buy the vehicle. If you've had the car examined, the dealer won't be liable for defects that the examiner missed.
Be realistic 'Satisfactory quality' will be based on the age, mileage, price and any other relevant factors. If there's a dispute after you've bought it, the question of whether a 'reasonable/objective' person would consider the car to be of satisfactory quality plays a part in a court of law. Naturally, a used car wouldn't be expected to meet the same standard as a new car.
Done deal If the car you buy doesn't measure up to these standards, the dealer is responsible for sorting out your complaint. This may mean you'll be entitled to your money back, or to have the fault repaired.
However, what you'll be entitled to will vary, so you should seek legal advice. If you've bought a car on or after 31 March 2003, you should either be offered a replacement car of equal value or a partial refund.
Reassurance Additionally, you may get a warranty from the manufacturer or from the dealer. This will cover you for certain defects, taking time and mileage limitations and servicing requirements into consideration. There can also be claim limits. It is best to ask to see a specimen policy to ensure it meets your needs.
Internet
If you choose to buy over the Internet, your rights will depend on the contract and the law governing that contract. Read any terms and conditions carefully, and be sure to check which country's law governs your contract.
Small print You'll be covered by The Consumer Protection (Distance Selling) Regulations 2000. This legislation states that you must be given clear information about the product you're about to buy online.
This should include accurate details about the product, delivery arrangements, supplier details and the full price, with any taxes and charges to cover extras such as delivery.
Change of heart The law also means you'll have a cooling-off period of seven working days if you want to cancel your order. This is dated from the time you receive your goods. You should also be given written information on how to cancel your contract and a postal address, plus you'll be entitled to a full refund within 30 days.
Make sure that you know which type of contract you're entering into – whether it's with an agent, a supplier or a private sale.
Foreign terms If you're buying from overseas, you may find that your rights are different from those in the UK. It pays to ensure you're dealing with a reputable company.
Whoever you choose, make sure the site is 'secure', so your personal details cannot be intercepted. Look for a padlock at the bottom of your browser window and URLs that start with 'https'.
Private
If you buy privately, you won't be protected legally if the car doesn't come up to scratch. It's up to you to ask the right questions and have the car thoroughly inspected before you buy.
Safeguards Essentially it's a case of 'Buyer Beware'. As the onus is on you to make sure the car is sound, it's a good idea to get an independent engineer to give the car a thorough mechanical inspection.
Hidden past Then, there are past owners to consider. You could opt for an AA Car Data Check, which will let you know if there's outstanding finance on the car, or even if it has a shady history.
Your legal rights are limited and unscrupulous dealers often masquerade as private sellers, so beware.
The only legal terms that cover a private sale contract are:
- the seller must have the right to sell the car
- the vehicle should not be misrepresented
- it should match its description:
- for example, if the ad states that there is a valid MOT, there should be a valid MOT.
Remember, if there are problems, you can only claim against someone you can find, and who has the means to meet your claim. Therefore:
- go to the seller's address and if possible get a home phone number – don't meet someone on a street corner
- check the documents carefully – make sure the seller is the person named on the registration document and other papers.
The AA Car Buyer's Contract can offer you some protection if you're buying privately.
Auctions
If you buy at auction you again have very little legal protection. Should you find defects on the car after you've bought it, you'll only have redress against the auctioneer if the auction house misled you. However, this depends on the facts and the conditions of sale.
Liability Generally the auctioneer won't be liable if the seller doesn't have the right to sell the car in the first place – if it is stolen for example. Any comeback you may have will be against the seller himself, so long as he hasn't disappeared.
Some auctions offer 'guarantees' or 'insurance' for an extra sum, but any rights are limited, so check the wording on any paperwork carefully.
Be warned If you're buying a car that has been sold by an auction house on behalf of a private owner, then the inferred terms about the car's roadworthiness and quality won't cover the car. So if it turns out to be a dud, the owner bears no responsibility.
If the auction house is representing a business, then the business does have a responsibility to ensure that the car is roadworthy and in a condition fit for sale. However, all your rights will ultimately depend on the conditions of the sale.