Some UK car dealers are calling for changes to the Consumer Rights Act 2015, arguing that the current rules do not always reflect the realities of buying and selling older used vehicles.

Industry figures have suggested that Britain could consider a system similar to the "lemon laws" used in parts of the United States. Such an approach could potentially introduce clearer vehicle specific rules around faults and consumer remedies.

The calls were reported by Car Dealer Magazine following discussions with dealers about the regulations they would most like to see changed [1]. Some argued that the current Consumer Rights Act is difficult to apply consistently across vehicles with very different ages, mileages and values.

However, no change to UK consumer law has been announced. These are views from within the motor trade rather than a Government proposal to replace the Consumer Rights Act.

So, what are dealers asking for, and what could a different system mean for motorists?

Why Are Some Car Dealers Calling for Change?

The Consumer Rights Act applies to goods sold by traders, including new and used cars [2].

Some dealers believe the legislation can create uncertainty when applied to used vehicles because cars can vary significantly in age, mileage, price, condition and history.

A mechanical problem developing in a relatively new, low mileage vehicle may reasonably raise different expectations from the same problem developing in an older car that has covered a substantial number of miles.

Current consumer law already takes some of these differences into account.

Under the Consumer Rights Act, goods must meet the standard that a reasonable person would consider satisfactory. Their description, price and other relevant circumstances can be considered when deciding whether that standard has been met.

Trading Standards backed guidance for car dealers goes further. It states that factors including a vehicle's age, value, mileage, intended use, durability, safety and description can be relevant when determining whether a used car is of satisfactory quality [3].

The argument from some dealers is that more specific rules written around vehicles could make those expectations clearer for both sides.

What Is a Lemon Law?

"Lemon law" is a term most commonly associated with consumer protection legislation in the United States [4].

Broadly, these laws provide remedies for consumers who purchase vehicles with significant defects that cannot be satisfactorily resolved under the relevant rules.

However, there is no single US lemon law that could simply be copied into British legislation. Protections differ depending on the jurisdiction.

A UK version would therefore require policymakers to determine which vehicles qualified, what constituted a serious fault and what opportunities a dealer should have to resolve a problem.

It would also need to establish how factors such as vehicle age and mileage should influence the protections available to consumers.

At present, there is no confirmed Government proposal to introduce such a system.

What Rights Do Used Car Buyers Have Now?

Motorists buying a car from a dealer already have statutory protections under the Consumer Rights Act 2015 [5].

The law requires goods to be of satisfactory quality. Other provisions require goods to be fit for a particular purpose where the relevant conditions apply and to match their description.

For motorists, satisfactory quality does not simply mean that a vehicle starts and can be driven.

The condition, reliability, durability and safety of the vehicle can all be relevant. The standard expected will also depend on the particular car.

A ten year old vehicle with high mileage will not necessarily be expected to meet the same standard as a nearly new car costing considerably more. Trading Standards guidance specifically recognises that reasonable wear and tear should be taken into account when assessing older vehicles.

Can You Reject a Faulty Used Car?

Consumers can have a short term right to reject goods that do not conform to the Consumer Rights Act [6].

For qualifying faults, this right generally lasts for 30 days.

After the initial period, a consumer will generally have the right to request a repair or replacement. The remedy must be provided within a reasonable time and without causing significant inconvenience.

If the repair or replacement is unsuccessful or cannot reasonably be provided, the consumer may have access to a price reduction or the final right to reject the vehicle.

For motor vehicles, a refund under the final right to reject can potentially be reduced to account for the consumer's use of the car.

The exact remedy available will depend on the circumstances.

Does Every Fault Mean You Can Return a Used Car?

No.

Buying a used vehicle does not mean every mechanical problem that develops afterwards gives the buyer an automatic right to return it.

Age, mileage, price and condition can all affect what constitutes satisfactory quality.

Trading Standards guidance gives the example of a ten year old vehicle with 120,000 miles developing a clutch problem four months after purchase. If that component would ordinarily be expected to require replacement at around that age and mileage, the problem could amount to reasonable wear and tear rather than evidence that the vehicle was unsatisfactory when sold.

The situation could be very different if a serious defect appeared shortly after somebody purchased a much newer vehicle.

Consumers also cannot generally rely on the satisfactory quality requirement for an issue that was specifically brought to their attention before the contract was made. The Act also contains provisions concerning faults that an examination before purchase ought to have revealed.

Could a UK Lemon Law Benefit Consumers?

Potentially.

More specific rules for used vehicles could make it easier for buyers to understand what protections apply when something goes wrong.

Clear standards could also reduce disputes between consumers and dealers over whether a problem represents a genuine fault or reasonable wear associated with an older vehicle.

That could benefit reputable dealers as well as consumers.

However, the details would matter.

The Consumer Rights Act already gives motorists substantial statutory protections. Any proposal to replace or substantially reform those protections would need to be assessed carefully.

Greater certainty for businesses should not come at the expense of appropriate protections for consumers who purchase genuinely faulty vehicles.

There is also evidence that problems with used cars remain a significant consumer issue. Citizens Advice data previously showed that its Consumer Service received almost 43,000 complaints concerning used vehicles during 2023 [7]. Defective vehicles accounted for 66% of those complaints.

What About Cars Bought on Finance?

Buying a vehicle through finance can introduce additional considerations.

PCP, hire purchase and other vehicle finance arrangements can involve rights and responsibilities beyond those associated with purchasing a car outright. The Consumer Rights Act itself includes provisions applying to arrangements such as hire purchase.

However, a dispute about a faulty vehicle should not automatically be confused with a complaint about how the finance used to purchase it was arranged.

The two issues can involve different circumstances, regulations and potential remedies.

A motorist experiencing mechanical problems with a vehicle should therefore establish what type of issue they are dealing with before deciding what action to take.

Has the Consumer Rights Act Changed?

No.

The Consumer Rights Act 2015 remains in force. Used car buyers have not lost their existing statutory protections because some dealers have called for reform.

There has also been no Government announcement confirming that a US style lemon law will replace the existing legislation.

For now, motorists buying a used vehicle from a dealer should continue to understand their current rights. Keeping the vehicle advertisement, sales documents, finance paperwork and records of conversations with the dealer can also be useful if a dispute later arises.

The debate around a potential UK lemon law is nevertheless worth watching.

Clearer vehicle specific rules could potentially provide greater certainty for consumers and the motor trade. Any future proposal would need to balance that certainty against the protections motorists already have when a used car fails to meet the standards required by law.

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References:

1. The calls were reported by Car Dealer Magazine following discussions with dealers about the regulations they would most like to see changed - https://cardealermagazine.co.uk/car-dealers-have-their-say-we-want-a-us-style-lemon-law-to-replace-consumer-rights-act/326334
2. The Consumer Rights Act applies to goods sold by traders, including new and used cars - https://www.legislation.gov.uk/ukpga/2015/15/pdfs/ukpga_20150015_en.pdf
3. Trading Standards backed guidance for car dealers goes further. It states that factors including a vehicle's age, value, mileage, intended use, durability, safety and description can be relevant when determining whether a used car is of satisfactory quality - https://www.businesscompanion.info/focus/car-traders-and-consumer-law/part-2-consumer-rights-act
4. "Lemon law" is a term most commonly associated with consumer protection legislation in the United States - https://amlausa.org/understanding-lemon-laws-in-the-united-states-consumer-protection-for-defective-vehicles/
5. Motorists buying a car from a dealer already have statutory protections under the Consumer Rights Act 2015 - https://www.gov.uk/government/publications/consumer-rights-act-2015/consumer-rights-act-2015
6. Consumers can have a short term right to reject goods that do not conform to the Consumer Rights Act - https://www.bromley.gov.uk/leaflet/312237/2/710/d
7. Citizens Advice data previously showed that its Consumer Service received almost 43,000 complaints concerning used vehicles during 2023 - https://www.citizensadvice.org.uk/about-us/media-centre/press-releases/citizens-advice-consumer-awareness-week-top-tips-buying-used-cars/