Common vehicle dispute claims & the legal framework

Our team of experts looks into some of the most common vehicle dispute claims, highlighting the legal framework that should always be considered when making a claim.

Vehicle disputes are very rarely about minor inconvenience. Instead, they’re most commonly a breakdown in trust between the buyer and seller. In our experience, most cases arise shortly after purchase and often involve mechanical failure or misrepresentations when it comes to descriptions.

Whilst they may appear very technical, the most important considerations often come down to the applicable legal framework. For consumers, the starting point is the Consumer Rights Act 2015. For businesses or private sales, they’re governed by the Sale of Goods Act 1979 (amended).

Understanding the distinction is very important, so we have set out the common issues we encounter under the aforementioned legal frameworks.

Most common consumer vehicle disputes

Under the Consumer Rights Act 2015, vehicles must be of satisfactory quality, fit for purpose and as described.

1. Engine failure: in these scenarios, a buyer purchases a vehicle from a dealership and within weeks, an engine or gearbox issue arises. The dealership will often argue that the issues boil down to wear and tear, the age of the vehicle or indeed that the buyer has caused damage. If the fault appears within the first six months of purchase, the standard position is that the vehicle is presumed to have an inherent defect at the point of sale. In this instance, consumers have a short term right to reject, and the burden of proof is on the seller, not the buyer.

2. Repeated repair attempts: after 30 days from purchase, it is common for buyers to seek to resolve matters by providing more than one opportunity attempt. It is important to know, however, that the seller/dealership is entitled to only one repair attempt, and the law does not permit endless cycles of repair.

3. Vehicle not as described: vehicles must match the description, and if any such representations induce the purchase and prove to be inaccurate, this may amount to a breach even if the vehicle is fit for purpose. These cases will often turn on the contents of the adverts, listings, correspondence between the parties and assurances during the course of the purchase.

4. Sold as seen: sellers often rely on phrases such as ‘sold as seen’. Reliance on these phrases is often misconceived because – where consumers are concerned – they have very limited effect and sellers cannot contract out of statutory obligations under the Consumer Rights Act 2015.

Non-consumer purchases

These disputes are governed by the Sale of Goods Act 1979 (as amended) and general principles of contract and misrepresentation.

1. Limited company purchases: there is no automatic 30-day short term right to reject, no six-month reverse burden of proof, and greater emphasis is placed on the express contractual terms. The evidential burden rests with the buyer/limited company to establish the breach. Without sufficient evidence to show breach on the seller’s part, these cases can often be tricky.

2. Business-to-business sales & auction purchases: Business-to-business and auction sales will often contain limitation clauses, exclusion clauses, and reduced warranties. Whilst the legal framework remains the same, these disputes are often more technical and commercially complex and turn on the contractual provisions first.

3. Private sales between individuals: In these cases, the most important principles are that the vehicle must match its description, be owned by the seller and must not be misrepresented. Claims of this nature often fall under misrepresentation, such that the buyer must establish a false statement, reliance, and loss.

This can often be challenging where there is no documentary evidence of the pre-contractual assurances made by the seller.

Key considerations

In consumer purchases, disputes are often weakened by continued use of the vehicle after proposing to reject it, failing to confirm rejection clearly and within 30 days, and providing multiple repair attempts without the buyer reserving their rights or obtaining evidence.

In non-consumer purchases, the burden of proof remains on the buyer and, so, obtaining evidence at an early stage is crucial.

Vehicle disputes rarely resolve overnight and can escalate when early decisions are made without clear legal direction. Whilst the issues can appear technical, the statutory framework and principles outlined above are a crucial starting point and form the foundation of the key considerations for resolutions.

We advise both consumers and businesses on vehicle disputes, early rejection strategy, and provide advice regarding contractual terms and exclusions. We can also help with early evidence gathering and negotiating settlements.

The objective in such matters is to achieve a proportionate and commercially sensible resolution without escalating costs unnecessarily, so if you need expert guidance and support, please don’t hesitate to get in touch.

Our Legal 500-rated litigation & dispute resolution team help private and commercial clients to resolve a wide range of disputes, including those related to vehicles.