Faulty car or dealer finance problems
Your rights when a used or new car is faulty: hire purchase and PCP claims, Section 75 for deposits and loans, and when chargeback helps.
Hire purchase and PCP: claim against the finance company
With hire purchase or PCP (conditional sale), the finance company legally owns the car and is the supplier. You don't need Section 75 — you complain directly to the finance company under the Consumer Rights Act 2015, which gives a short-term right to reject within 30 days and repair/replacement rights after that.
Paid a deposit by credit card?
Section 75 can apply to a credit card deposit as long as the car's cash price is over £100 and not more than £30,000 — even if you only put a small deposit on the card. Cars over £30,000 fall outside Section 75.
Personal loan arranged by the dealer
If the dealer arranged a loan with a lender it has a business arrangement with, that loan may be a linked agreement covered by Section 75. A loan you arranged yourself from your bank usually isn't.
Practical steps
- Get an independent inspection report.
- Write to the dealer and finance company stating the fault and what you want (rejection, repair, price reduction).
- Stop using the car where safe and practical once you reject it, and keep records.
- Escalate to the Financial Ombudsman Service if the finance company refuses or doesn't reply within 8 weeks.
Last reviewed: November 2026. General information only — not legal advice.