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Disputes involving car purchases from dealerships are unfortunately more common than you might think. Issues such as faults with the vehicle, misrepresentation by the dealership, or breaches of contract can cause significant stress and financial loss for buyers. In such situations, it is essential to understand your legal rights and the remedies available under the Sale of Goods Act 1979 (SGA).
The Sale of Goods Act 1979: Protecting Buyers’ Rights
The Sale of Goods Act 1979 provides a legal framework for transactions where goods, including vehicles, are bought and sold. It imposes a duty on dealerships to ensure that any car they sell meets specific standards. These obligations are critical to ensuring that buyers receive what they have paid for.
Key Standards for Car Purchases
- Satisfactory Quality
Any vehicle purchased must meet the standard that a reasonable person would regard as satisfactory, taking into account factors such as its price, age, mileage, and condition. For example, a brand-new car should be free from defects, while a used car should still be fit for everyday use unless faults were specifically disclosed. - Fit for Purpose
If you inform the dealership that you require the car for a specific purpose, such as long-distance commuting or towing a caravan, the vehicle must be suitable for that use. A failure to meet this expectation could amount to a breach of the SGA. - As Described
The vehicle must match any descriptions provided by the dealership, whether in advertisements, on their website, or during discussions. This includes details about the make, model, mileage, service history, and condition of the car. For instance, if a car is advertised as “one owner, low mileage” but the history reveals multiple owners and higher mileage, this would constitute a breach.
Failure by a dealership to meet these obligations can leave them in breach of the SGA, which provides buyers with legal remedies.
Common Issues in Dealership Purchases
Faulty Vehicles
One of the most frequent complaints arises when cars develop faults shortly after purchase. Under the SGA, dealerships are obligated to ensure the vehicle is of satisfactory quality. If defects or faults significantly reduce the car’s value or render it unsafe or unfit to drive, buyers can take legal action to hold the dealership accountable.
Misrepresentation
Misrepresentation occurs when a dealership provides false, misleading, or incomplete information about a car. Examples include incorrect mileage, an undisclosed accident history, or false claims about the vehicle’s condition. If you relied on this information when deciding to purchase, and it turns out to be untrue, you may have grounds to cancel the contract and demand a refund.
Extended Warranties and Agreements
Many dealerships offer extended warranties or service agreements as part of their sales. If these warranties are not honoured, or if the terms were misrepresented during the sale, this may give rise to a dispute.
Remedies
If a dealership fails to meet its obligations under the SGA, buyers have several remedies available:
- Repair or Replacement
You can request that the dealership either repairs the vehicle to bring it up to satisfactory quality or provides a replacement vehicle of equivalent value. - Refund
If the breach is significant and discovered within a reasonable period after purchase, you may be entitled to a full or partial refund. For example, if a car develops major faults shortly after purchase, a full refund may be justified. - Compensation
Buyers may also claim damages for additional expenses incurred due to the dealership’s breach, such as repair costs, loss of use, or the expense of hiring alternative transport.
How to Resolve a Dispute with a Dealership
Step 1: Document the Issue
Ensure you have all relevant documentation, including the purchase agreement, warranty details, advertisements, service records, and any correspondence with the dealership. Take photographs or videos of any faults or damage to the car as evidence.
Step 2: Contact the Dealership
Communicate your concerns to the dealership in writing. Clearly outline the issue and specify what resolution you are seeking, such as a repair, replacement, or refund. Keep a record of all correspondence and any responses received.
Step 3: Seek Professional Legal Advice
If the dealership does not resolve your concerns, consult a solicitor to assess your legal position. A solicitor can advise you on your options, including pursuing legal action if necessary. They may also assist in drafting a formal letter of complaint or negotiating a resolution.
Get in Touch for Expert Legal Advice
If you are involved in a dispute with a dealership or require expert legal assistance, we are here to support you. Contact Lawdit Solicitors at 4 Brunswick Place, Southampton, SO15 2AN, or call us on 023 8023 5979 for professional guidance. Our team of experienced solicitors specialises in resolving disputes effectively and ensuring your rights are protected. We are here to help you every step of the way.
By Ajay Pardesi, a LPC graduate at the University of Law.
