Category: Car Buying Guides

Buying a car is one of the biggest financial commitments many people make, so discovering there’s something wrong with it can be incredibly frustrating.

Whether you’ve noticed warning lights, unexpected mechanical problems or faults that weren’t mentioned before you bought the vehicle, it’s natural to wonder what your rights are—especially if you’ve bought the car on finance.

The good news is that if you’ve purchased a new or used car from a dealership in the UK, you may have legal protection under the Consumer Rights Act 2015. Understanding what to do next, and acting quickly, can make resolving the issue much easier.

This guide explains your rights, what counts as a faulty car, how to reject a car bought on finance and the practical steps you should take if something goes wrong.

The First Thing to Do If You Discover a Fault

If you’ve found a problem with your car, don’t ignore it or hope it will resolve itself.

The sooner you report the issue, the stronger your position is likely to be. Waiting could make it more difficult to show when the fault first appeared or what was agreed with the dealer.

Before taking any further action, we’d recommend doing four things:

• Make a note of the fault and when you first noticed it.
• Take photographs or videos if the issue is visible. Good evidence makes it much easier to demonstrate when the fault first appeared and can help avoid disagreements later if the dealer disputes your claim.
• Keep copies of any warning messages, invoices or repair reports.
• Contact both the dealership and, if the vehicle is on finance, your finance provider.

Keeping a clear record from the beginning can make it much easier to resolve the issue if there’s any disagreement later.

If you believe the fault makes the vehicle unsafe to drive—for example because of problems with the brakes, steering or fuel system—stop using the vehicle until you’ve spoken to the dealer or had it inspected. Continuing to drive an unsafe vehicle could put you and other road users at risk.

What Are Your Rights If You Buy a Faulty Car From a Dealer?

If you bought your car from a dealership for personal use, your purchase is usually protected by the Consumer Rights Act 2015.

These rights exist to make sure buyers aren’t left out of pocket when a vehicle develops faults that shouldn’t reasonably have been present when it was sold.

Under the Consumer Rights Act 2015, the vehicle should be:

• Of satisfactory quality – for example, you’d reasonably expect the engine, gearbox, brakes, steering and other major components to work properly, taking into account the vehicle’s age, mileage, price and overall condition.
• Fit for its intended purpose.
• As described by the dealer.

These rights apply whether you’ve paid outright or bought the car on finance.

However, they generally don’t apply when buying from a private seller, where your legal protection is much more limited.

Understanding these rights is important because they determine what you’re entitled to ask the dealer to do if something goes wrong.

What Counts as a Faulty Car?

Not every problem automatically means you can reject a vehicle.

The law considers whether the car is of satisfactory quality, fit for purpose and as described.

For example, a ten-year-old vehicle with high mileage wouldn’t be expected to perform like a nearly new car. Some cosmetic wear is perfectly reasonable.

However, you wouldn’t expect significant mechanical faults, serious electrical problems or undisclosed damage that affects how the vehicle performs.

Likewise, if the dealer advertised the vehicle with specific features or capabilities, those should accurately reflect the car you’ve purchased.

If you’re unsure whether a fault is serious enough, it’s worth discussing it with the dealer as soon as possible rather than assuming it’s normal wear and tear.

Your Rights Depend on How Long You’ve Owned the Car

One of the most important things to understand is that your rights change over time.

Within the First 30 Days

The first 30 days give you the strongest legal protection.

If the vehicle isn’t of satisfactory quality, fit for purpose or as described, you may have the right to reject it and receive a refund.

In some situations, you may prefer the dealer to repair the vehicle instead, particularly if the fault is relatively minor and you’re otherwise happy with the car.

If your vehicle spends time being repaired during this period, those days don’t usually count towards the initial 30-day limit.

If you’ve only recently taken delivery of the vehicle, it’s usually best to report the issue immediately rather than waiting to see if it becomes worse.

Between 30 Days and Six Months

After the first 30 days, your rights change slightly.

In many cases, the dealer is entitled to one opportunity to repair the fault before a refund or replacement becomes appropriate.

If the repair isn’t successful, takes an unreasonable amount of time or causes significant inconvenience, you may then be entitled to reject the vehicle, receive a refund or agree to a price reduction if you wish to keep it.

There isn’t a fixed number of days that counts as a “reasonable” repair time. What’s considered reasonable will depend on the nature of the fault, whether replacement parts are available and how long you’re left without your vehicle. If the repair process drags on without a clear resolution, it’s worth discussing your options with both the dealer and your finance provider.

If you’re approaching this stage, continue keeping records of all communication and any work carried out on the vehicle.

After Six Months

You still have rights after six months, but proving your case can become more difficult.

At this stage, you may need to demonstrate that the fault was already present when you bought the vehicle, even if it only became apparent later.

In some situations, obtaining an independent engineer’s report may help support your claim.

What If the Dealer Says It’s Wear and Tear?

One of the most common disagreements between buyers and dealers is whether a problem is actually a fault or simply normal wear and tear.

Older vehicles naturally experience wear over time, so components such as tyres, brake pads, wiper blades and clutch friction material may eventually need replacing as part of routine maintenance.

However, significant mechanical or electrical faults that were present when the vehicle was sold—even if they only become obvious later—may still be covered by your consumer rights.

If the dealer tells you a problem is simply wear and tear and you’re unsure whether that’s correct, ask them to explain their reasoning.

If you still disagree, an independent inspection can sometimes help clarify whether the issue is simply normal wear or whether a fault was likely to have been present when the vehicle was sold. An engineer’s report can also provide useful evidence if the dispute continues.

What If You Bought the Car on Finance?

Buying a faulty car on finance works slightly differently because the finance company usually owns the vehicle until the agreement ends.

Because the finance company is the legal owner during the agreement, they also have responsibilities if something goes wrong. That’s why it’s important to notify them as soon as you discover a fault rather than dealing only with the dealership.

Your finance provider may investigate the complaint alongside the dealer and help work towards a fair resolution.

Importantly, don’t stop making your finance payments unless your finance provider has specifically instructed you to do so. Missing payments could affect your credit file and may put you in breach of your finance agreement while the dispute is ongoing.

Can You Reject a Faulty Car Bought on Finance?

In many cases, yes.

If the vehicle qualifies for rejection under the Consumer Rights Act, the finance company and dealership will normally work together to resolve the issue.

Depending on your circumstances, this could involve:

• Repairing the vehicle.
• Replacing the vehicle.
• Ending the finance agreement.
• Refunding payments you’ve already made, subject to any appropriate deductions where applicable.

The exact outcome will depend on the age of the agreement, the nature of the fault and whether the vehicle can reasonably be repaired.

The most important thing is reporting the issue promptly and following the correct process.

Should You Repair the Car or Reject It?

This is often one of the biggest decisions you’ll face.

If the fault is relatively minor and the dealer can repair it quickly, having the issue fixed may be the simplest solution.

However, if the vehicle has multiple faults, serious mechanical issues or repeated problems that leave you questioning its reliability, rejecting the car may be the more sensible option.

Before making your decision, consider:

• How serious is the fault?
• Has the dealer already attempted a repair?
• Would you still feel confident owning the vehicle after it’s repaired?
• Is the inconvenience becoming unreasonable?

Thinking about these questions can help you decide which outcome is best for your circumstances.

If your vehicle needs to stay with the dealer for repairs, you might wonder whether you’ll receive a courtesy car. This isn’t an automatic legal right and will usually depend on your agreement with the dealer, any warranty provided and the circumstances of the repair. If having a replacement vehicle is important, it’s worth asking about this before the repair begins.

Don’t Authorise Repairs Yourself

It can be tempting to arrange repairs yourself, especially if you rely on your car every day.

However, unless you’ve agreed this with the dealer or finance company, authorising significant repair work independently could make resolving your complaint more complicated later.

Where possible, speak to the dealer first and give them the opportunity to inspect the vehicle before agreeing to major repairs.

What If the Dealer Refuses to Help?

Most disputes can be resolved directly with the dealership, but that’s not always the case.

If you’re unable to reach an agreement, your next step is speaking with your finance provider if the vehicle was bought on finance.

If the issue still isn’t resolved, you may be able to escalate your complaint through The Motor Ombudsman, provided the dealership is a participating business.

The Ombudsman offers independent dispute resolution and may help both parties reach a fair outcome without going to court.

Legal action should generally be considered only after you’ve exhausted the available complaint procedures.

Before You Contact the Dealer

Having the right information ready can make your conversation much easier and help the dealer investigate the issue more quickly.

Before you get in touch, try to have the following available:

• Vehicle registration number.
• Purchase date.
• Finance agreement number (if applicable).
• Photos or videos of the fault.
• A clear description of what’s happened.
• The vehicle’s mileage when the problem first appeared.

Being organised from the start can save time and reduce the chances of misunderstandings later.

Your Action Plan

If you’ve discovered a fault with your car, these are the key steps to take:

1. Stop driving the vehicle if it’s unsafe.
2. Photograph or record the fault where possible.
3. Contact the dealership as soon as possible.
4. Inform your finance provider if the vehicle is on finance.
5. Continue making your finance payments unless you’re instructed otherwise.
6. Keep copies of all emails, invoices and repair reports.
7. Escalate your complaint if the issue can’t be resolved directly.

Following these steps early can help protect your rights and make it easier to reach a fair outcome.

Final Thoughts

Discovering a fault after buying a car can be stressful, but understanding your rights helps you make informed decisions rather than reacting in frustration.

If you think you’ve bought a faulty car, the most important thing is to act quickly.

Report the fault as soon as possible, keep detailed records, continue making your finance payments unless you’re advised otherwise and give both the dealer and your finance provider the opportunity to investigate the issue.

Acting quickly doesn’t just protect your legal rights—it often gives you the best chance of resolving the problem before it becomes a lengthy dispute.

Disclaimer: This article is intended for general information only and should not be considered legal or financial advice. Consumer rights will depend on your individual circumstances. If you’re unsure about your rights, consider seeking independent legal advice or speaking directly with your finance provider.

Choosing between a new and used car is one of the biggest decisions you’ll make when buying your next vehicle. While it’s easy to focus on the excitement of choosing a make and model, deciding whether to buy new or used can have a significant impact on your monthly budget, running costs and long-term ownership experience.

A brand-new car offers the latest technology, manufacturer warranties and the satisfaction of being its first owner. A used car, meanwhile, can provide excellent value for money, slower depreciation and often lower monthly finance payments.

So, which option is right for you?

The answer depends on your budget, driving habits, priorities and how long you intend to keep the vehicle. This guide explores the advantages and disadvantages of both options, helping you make an informed decision before arranging your car finance.

New or Used: Which Is Right for You?

There isn’t a single answer that suits every driver. The right choice depends on what matters most to you.

A new car may be the better option if you value having the latest technology, a full manufacturer warranty, the ability to choose your preferred specification and the intention of keeping the vehicle for several years.

A used car could be a better fit if you’re looking to maximise value for money, work within a fixed monthly budget or avoid the steepest period of vehicle depreciation.

Many UK buyers find that a nearly new vehicle—typically between two and four years old—offers an attractive balance between modern features, lower depreciation and affordability.

Understanding Depreciation

One of the biggest costs associated with owning any vehicle is depreciation—the reduction in its value over time.

New cars typically experience their steepest depreciation during the first year of ownership, with values continuing to fall over the following years. By comparison, used vehicles have already absorbed much of this initial drop in value, meaning they often depreciate at a slower rate.

For buyers who plan to change cars every few years, depreciation can play an important role in the overall cost of ownership and is well worth considering alongside the purchase price.

The Benefits of Buying a New Car

Buying a new car offers several advantages, particularly if you enjoy driving the latest models and want the reassurance of manufacturer support.

Many new vehicles include updated safety technology, improved infotainment systems, enhanced smartphone connectivity and, in some cases, more efficient powertrains. If having access to the latest features is important to you, buying new can be an attractive option.

Most new cars also come with a manufacturer’s warranty, providing reassurance should certain faults develop during the covered period. Depending on the manufacturer, warranties can last anywhere from three to seven years—or even longer—helping to reduce unexpected repair costs during the early years of ownership.

Another advantage is the ability to personalise your vehicle. Buying new often allows you to choose the exact colour, trim level, engine and optional extras that suit your preferences, whereas buying used means selecting from vehicles already available.

Things to Consider Before Buying New

While buying new has clear advantages, it’s important to consider the financial implications.

New vehicles typically have a higher purchase price than equivalent used models, which may result in higher monthly finance repayments. However, your deposit, finance product and agreement length will also influence your monthly costs.

Depreciation is another important factor. Because new cars experience the greatest loss in value during their early years, they may not retain their value as well as an equivalent used vehicle over the same period.

For buyers intending to replace their vehicle after only a few years, this may influence which option represents the best overall value.

The Benefits of Buying a Used Car

Buying used allows many motorists to get more for their money.

Rather than purchasing a lower-specification new model, you may be able to afford a vehicle with a higher trim level, more equipment, a larger engine or even a model from a more premium manufacturer—all within the same budget.

Used vehicles also tend to depreciate more gradually because much of the initial loss in value has already occurred. For many buyers, this makes used cars an attractive financial proposition.

Because used vehicles generally have lower purchase prices than equivalent new models, monthly finance repayments may also be lower, although this depends on factors such as the finance agreement, deposit and interest rate.

Buying Used Doesn’t Have to Mean Compromising

One common misconception is that an older car is automatically less reliable. In reality, many modern vehicles remain dependable for well over 100,000 miles when they’re properly maintained.

A well-looked-after used car with a full service history may prove more reliable than a newer vehicle that hasn’t been maintained correctly.

Rather than focusing solely on the vehicle’s age, it’s worth checking:

• A full service history
• MOT history
• Mileage
• Number of previous owners
• Overall condition

These factors often provide a better indication of a vehicle’s long-term reliability than its registration year alone.

Older vehicles may also require more maintenance over time, including the replacement of wear-and-tear components such as tyres, brakes and suspension parts. Factoring these costs into your budget will help you build a more realistic picture of overall ownership costs.

Comparing the Total Cost of Ownership

When choosing between a new and used car, it’s important to look beyond the purchase price.

The true cost of ownership includes a range of ongoing expenses, including:

• Insurance
• Fuel or charging costs
• Vehicle tax (VED)
• Servicing
• Routine maintenance
• Depreciation
• Monthly finance repayments

Sometimes a vehicle with a slightly higher purchase price can prove cheaper to own over several years because it offers better fuel economy, lower insurance costs or stronger resale values.

Taking all of these costs into account will give you a much clearer understanding of which vehicle represents the best value over the long term.

Can You Finance Both New and Used Cars?

Yes. Most UK lenders offer finance for both new and used vehicles, although eligibility criteria, maximum vehicle age and finance terms may vary between lenders.

Whether you’re buying new or used, it’s important to compare more than just the monthly repayment. Consider the total amount payable over the agreement, the flexibility of the finance product and how well the repayments fit within your overall monthly budget.

Choosing finance that supports your long-term financial goals is just as important as choosing the right vehicle.

Choosing the Right Car for Your Lifestyle

Every driver has different priorities, which is why there’s no universal “best” option.

If you cover high annual mileage, keeping running costs low may be your main objective. If you enjoy having the latest technology and intend to keep your vehicle for many years, buying new may offer greater long-term satisfaction.

Equally, if maximising value for money is your priority, a well-maintained used vehicle could provide everything you need while reducing both the purchase price and the effects of early depreciation.

Rather than asking which option is better, consider which one best suits your budget, lifestyle and future plans.

Frequently Asked Questions

Is it cheaper to finance a used car?

Used cars generally have lower purchase prices than equivalent new models, which can lead to lower monthly repayments. However, the overall cost will also depend on factors such as the finance product, interest rate, deposit and agreement length.

Is buying a new car worth it?

For many buyers, yes. A new car offers the reassurance of a manufacturer warranty, access to the latest technology and the opportunity to personalise the vehicle to your preferences. Whether it’s worth the additional cost depends on your priorities and budget.

What age used car offers the best value?

Many buyers consider vehicles between two and four years old to offer an excellent balance between modern features, affordability and slower depreciation. However, the right choice will depend on the individual vehicle, its condition and service history.

Should I buy new if I keep my cars for a long time?

Potentially. Keeping a vehicle for many years may allow you to benefit from buying new, as you’ll enjoy the latest technology from the outset and may spread the initial depreciation over a longer ownership period.

Why Choose Low Rate Car Finance?

Whether you’ve decided on a brand-new model or a quality used vehicle, choosing the right finance package is an important part of the buying process.

Low Rate Car Finance works with a panel of UK lenders to help customers explore finance options that suit their budget and individual circumstances. Our experienced team provides straightforward guidance throughout the process, helping you make an informed decision with confidence.

Final Thoughts

Both new and used cars have their own advantages, and the right choice ultimately depends on your personal priorities.

If you value the latest technology, manufacturer warranties and the ability to customise your vehicle, buying new could be the right option. If your priority is maximising value for money, reducing the impact of depreciation and keeping ownership costs under control, a used car may be the better fit.

Whichever route you choose, taking the time to compare the total cost of ownership—not just the purchase price or monthly finance payment—will help you make a more informed decision and find a vehicle that suits both your lifestyle and your budget.

Buying a car is exciting, but choosing a monthly payment that fits comfortably within your budget is just as important as finding the right vehicle.

Whether you’re buying your first car or upgrading to something newer, understanding affordability can help you avoid unnecessary financial pressure and make a more confident purchasing decision.

At Low Rate Car Finance, one of the questions we’re asked most often is, “How much car can I actually afford?” While it might seem like the answer depends solely on your salary, lenders look at a much wider picture before deciding how much they’re willing to lend.

More importantly, the amount you’re able to borrow isn’t always the amount you should borrow. Choosing repayments that comfortably fit within your monthly budget can help make car ownership far more enjoyable in the long term.

How Is Car Affordability Calculated?

Affordability isn’t based on one single number. Instead, lenders assess your overall financial position to determine whether the repayments are sustainable.

Your income provides the starting point, but your monthly commitments and everyday living costs are equally important. Responsible lenders want to ensure that any finance agreement remains affordable throughout the term, rather than stretching your finances too far.

Every lender uses slightly different criteria, but most applications are assessed using a combination of your income, regular expenditure, employment status, existing credit commitments and previous credit history.

Your Income Is Only Part of the Picture

Naturally, lenders want to understand how much money you receive each month. This could include employment income, self-employed earnings, pension income or other regular sources of income that can be verified.

However, a higher salary doesn’t automatically mean you can comfortably afford a more expensive vehicle. What matters is how much disposable income remains after your essential monthly expenses have been paid.

For this reason, two people earning exactly the same salary may have very different affordability assessments depending on their individual financial commitments.

Monthly Expenses Matter Just As Much

Alongside your income, lenders carefully consider your existing financial responsibilities.

These often include mortgage or rent payments, household bills, credit cards, personal loans, childcare costs, insurance policies and any existing finance agreements.

Looking at both income and expenditure allows lenders to build a realistic picture of your financial situation. The aim is to ensure that any monthly repayments fit comfortably alongside your existing commitments rather than creating unnecessary financial pressure.

How Your Credit History Influences Affordability

Although affordability is a key factor, your credit history also plays an important role.

A strong credit history may provide access to a wider range of finance options and potentially more competitive rates. However, many lenders assess applications using a combination of affordability and creditworthiness rather than relying solely on a credit score.

Even if your credit history isn’t perfect, it may still be possible to obtain finance depending on your overall financial circumstances.

Choosing the Right Finance Term

The length of your finance agreement has a significant impact on your monthly repayments.

Spreading the cost over a longer term usually reduces the monthly payment, making the vehicle appear more affordable from month to month. However, because interest is typically charged over a longer period, the total amount payable may be higher.

Finding the right balance between affordable monthly payments and the overall cost of borrowing is often the most sensible approach.

Can a Deposit Reduce Your Monthly Payments?

Paying a deposit reduces the amount you need to borrow, which can lower your monthly repayments and, in some cases, improve the finance options available to you.

Many customers choose to put money towards their purchase for this reason. However, depending on the lender and finance product, a deposit isn’t always essential.

The right option will depend on your personal circumstances and financial goals.

Don’t Focus Solely on the Monthly Payment

It’s tempting to choose the most expensive car you could potentially finance, but that doesn’t necessarily mean it’s the best financial decision.

Your monthly finance payment is only one part of the overall cost of owning a vehicle.

Before deciding on a budget, it’s worth considering everyday running costs such as insurance, fuel, servicing, MOTs, road tax, tyres and the possibility of unexpected repairs. Drivers of electric vehicles should also consider home charging costs and the availability of public charging where relevant. These ongoing expenses can make a significant difference to your overall monthly outgoings.

Leaving some flexibility within your budget can provide valuable peace of mind should your circumstances change or unexpected costs arise.

Consider the Total Cost of Ownership

Two cars with identical finance payments can have very different running costs.

Insurance premiums vary depending on the vehicle, your age and your driving history, while fuel economy or charging costs can significantly affect your monthly spending. Some manufacturers also have higher servicing and maintenance costs than others.

Depreciation is another factor worth considering. Although all vehicles lose value over time, some makes and models retain their value better than others, potentially reducing the overall cost of ownership.

Looking beyond the monthly payment gives you a much clearer understanding of what the vehicle will actually cost over the years you own it.

How Responsible Lenders Assess Affordability

Responsible lending is about ensuring a finance agreement is affordable and sustainable throughout its term, rather than simply offering the highest borrowing amount available.

To do this, they’ll usually assess three main areas: your income, your existing financial commitments and your overall financial stability.

This helps ensure that any finance agreement is sustainable, protecting both you and the lender from unnecessary financial strain.

Common Budgeting Mistakes to Avoid

One of the most common mistakes buyers make is focusing entirely on the monthly payment without considering the total amount they’ll repay over the full finance term.

Others overlook ongoing ownership costs such as servicing, insurance and fuel, only to find their monthly budget becomes much tighter than expected.

Another common mistake is borrowing right up to the maximum amount available. While you may be approved for a higher figure, leaving yourself some financial breathing room can make unexpected expenses much easier to manage and reduce financial stress over the life of the agreement.

Finally, it’s always worth comparing finance options. Different lenders and finance products may offer different repayment structures depending on your individual circumstances.

Choosing a Budget That Works for You

Rather than asking yourself, “What’s the most expensive car I can afford?”, a better question is, “What monthly payment will comfortably fit into my lifestyle?”

If your repayments still allow you to save money, enjoy family life, cover unexpected expenses and meet your existing financial commitments without difficulty, you’re far more likely to enjoy your new car without unnecessary financial pressure.

At Low Rate Car Finance, we believe the best finance agreement is one that works for your budget today and continues to work for you throughout the life of the agreement.