Information on manufacturer’s warranties and cars bought on credit.

IS THE CAR UNDER A MANUFACTURER’S WARRANTY?

A manufacturer’s warranty is a legally binding contract. They are required by law to do what they say they will.

However, warranties are like insurance policies.  If you do something outside of the terms and conditions, the warranty could be void.

Read the conditions of the warranty very carefully before you let anyone do anything to your car. A warranty doesn’t replace your legal rights under consumer law but it’s supposed to give you extra protection.

The Society of Motor Manufacturers and Traders offers a conciliation service for cars under manufacturer’s warranty. This could be cheaper and easier than taking the dealer to court.

DID YOU BUY THE CAR ON A CREDIT AGREEMENT?

Keep the credit company informed at all times of what you’re doing.  Send them copies of all letters that you send to the dealer.

If you bought the car on a credit agreement arranged or provided by the dealer, the company that gave you the credit shares liability so are equally responsible for the car. This means you can reject the car to the finance company and ask for your money back if the dealer isn’t helping you.

Be careful if you’re planning to stop paying the instalments on your credit agreement.  Take advice first as you may be in breach of contract. You can talk to Consumer Direct.

If you make a purchase on credit, you are protected by the Consumer Credit Act, which says if you have credit on something with a cash price of between £100 and £30,000, you can claim compensation from the finance company. This could be useful if the dealer has gone out of business, because the finance company is equally responsible to you.

It’s up to your local Trading Standards office to enforce the Consumer Credit Act.  Contact them.