How Automotive Finance Protection Actually Works

Most buyers assume they're covered the moment something goes wrong. The reality depends on two things: how much the car cost, and how it was financed.

Section 75A — Goods between £30,000.01 and £60,260

For cars in this range bought via PCP or HP arranged through the dealer, Section 75A applies.

• The rule: the finance company shares liability with the dealer for breach of contract or misrepresentation.
• The catch: you must go to the dealer first. Only if they've gone bust, vanished, or ignored a valid complaint can you claim from the finance company.

The Consumer Rights Act 2015 — above £60,260, or where Section 75A doesn't apply

Every car sold by a dealer must be of satisfactory quality, fit for purpose, and as described.

• 30-day right to reject: a serious fault in the first 30 days means a full refund.
• 6-month rule: a fault between 30 days and 6 months gives the dealer one chance to repair. If it fails, you can reject for a refund, minus a deduction for mileage added.