How to reject a car on finance (HP or PCP)
How to reject a car on finance (HP or PCP)
If your car is on HP or PCP finance and a fault has appeared, you can reject the vehicle by writing to the finance company - not just the dealer. Under the Consumer Rights Act 2015 the finance provider is the legal owner and supplier of the vehicle, so your rejection is addressed to them. A parallel Section 75 claim under the Consumer Credit Act 1974 can apply where part of the price was paid on a regulated credit agreement.
Plain English explanation
On HP and PCP, the finance company bought the car from the dealer and is hiring or selling it to you. That makes them the supplier for Consumer Rights Act purposes. The same standards apply as a cash purchase: the car must be of satisfactory quality, fit for purpose and as described. Within the first 30 days you have a short-term right to reject; between 30 days and 6 months the dealer or finance provider is entitled to one attempt to repair, after which you can reject if the fault remains. Your rejection letter should go to the finance company in writing, with the dealer copied in, and should set out the vehicle details, the fault, the dates, the prior contact and that you are exercising your right to reject under the Consumer Rights Act 2015. Keep paying the agreement while the complaint is in progress - missed payments can damage your credit file and weaken your position. If the finance provider refuses, the next step is usually the Financial Ombudsman Service, which handles regulated motor finance complaints for free.
What information matters
- Finance type (HP, PCP or personal loan) and agreement date
- When you took delivery and when the fault first appeared
- Whether you are inside the 30-day short-term right to reject
- Whether the dealer has already had one attempt to repair
- Mileage at purchase, at first fault, and now
- Any independent diagnostic report on the fault
- Whether part of the price (deposit, etc.) was paid on a credit card - this opens a Section 75 route too
Evidence checklist
Common dealer responses
- "You need to deal with the dealer, not us."
- "The 30 days has passed, so you can't reject."
- "It's a wear and tear item."
- "You've driven too many miles to reject."
- "Use the warranty for that."
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Start nowFAQ
Who do I send the rejection to - the dealer or the finance company?
The finance company, with the dealer copied. On HP and PCP the finance provider is the legal supplier of the vehicle under the Consumer Rights Act 2015.
Can I stop my monthly payments while I reject the car?
No. Keep paying the agreement while the complaint is open. Missed payments can be reported to credit reference agencies and used against your case.
What is Section 75 and does it apply to car finance?
Section 75 of the Consumer Credit Act 1974 makes the credit provider jointly liable with the supplier for breach of contract or misrepresentation, where the cash price of the item is between £100 and £30,000. It typically applies to credit card purchases - including a deposit paid by credit card - and to some regulated point-of-sale loans. PCP and HP rejections themselves rely on the Consumer Rights Act 2015, but a Section 75 claim on a card deposit can run in parallel.
What if the finance company refuses my rejection?
Ask for a final response letter, then refer the complaint to the Financial Ombudsman Service. It's free to use and covers regulated motor finance providers.
Will I get my deposit back?
If rejection is accepted, you should get your deposit and any payments made back, less a fair deduction for use if you are outside the first 30 days.
Can I reject a PCP car at the end of the agreement instead?
Voluntary termination under section 99 of the Consumer Credit Act is a separate right, available once you've paid at least half the total amount payable. It's not the same as rejection for a fault and doesn't require anything to be wrong with the car.