Understanding Your CRA 2015 Rejection Rights Timeline as a DealerUnderstanding Your CRA 2015 Rejection Rights Timeline as a Dealer

By CiteFlow

The Three Critical Rejection Periods Under CRA 2015

The Consumer Rights Act 2015 establishes three distinct rejection periods that determine when and how customers can reject vehicles purchased from your dealership. The first 30 days allow for immediate rejection with full refund if the vehicle is not of satisfactory quality, fit for purpose, or as described. Between 30 days and six months, customers must give you one opportunity to repair before exercising rejection rights. After six months, the burden of proof shifts to the customer to demonstrate the fault existed at the point of sale, and they must still allow one repair attempt before rejection.

Understanding these timelines is not academic. A customer who discovers a major fault on day 29 has fundamentally different rights than one who reports the same issue on day 31. The financial implications for your dealership change dramatically across these boundaries. Many dealers lose disputes simply because they misunderstand which rules apply at which point in the ownership timeline.

The First 30 Days: Short-Term Right to Reject

Within the first 30 days after delivery, customers have an immediate right to reject any vehicle that fails to meet the three core requirements of satisfactory quality, fitness for purpose, or accurate description. This is the short-term right to reject, and it is the most dealer-unfriendly period under the legislation. You cannot insist on attempting a repair. You cannot offer a partial refund. If the vehicle has a qualifying fault and the customer wants their money back within this window, you must provide a full refund.

The 30-day clock starts from the date the customer takes possession of the vehicle, not the date of contract signature. For distance sales, this means the day the vehicle is delivered or collected, whichever comes first. If you deliver a car on the 15th of the month, day 30 falls on the 14th of the following month. The customer has until the end of that day to exercise their short-term rejection right.

What constitutes a qualifying fault? The legislation does not provide an exhaustive list, but case law and guidance establish clear principles. A fault that makes the vehicle unsafe, unusable for its intended purpose, or materially different from what was described or reasonably expected qualifies. A 2015 Audi A3 with a failing dual-clutch transmission that causes dangerous hesitation in traffic would qualify. Minor cosmetic issues that do not affect function or safety typically would not.

The refund must be full, but you can make a deduction for use if the vehicle has been driven. The deduction must be fair and reasonable, reflecting the benefit the customer has had from using the vehicle. HMRC guidance on vehicle benefit calculations can inform this, but ultimately the deduction must be justifiable. A customer who has driven 500 miles in three weeks has clearly had some benefit; one who drove 50 miles before the fault became apparent has had minimal use.

Days 31 to Six Months: One Chance to Repair

After the 30-day short-term rejection period expires, the rules change significantly in your favour. From day 31 through to six months after delivery, customers lose the immediate right to reject. Instead, they must give you one opportunity to repair the fault before they can exercise what the Act calls the final right to reject. This repair attempt must be completed within a reasonable time and without significant inconvenience to the customer.

What counts as reasonable time? The legislation deliberately avoids rigid definitions, but trade guidance and case law suggest that for most mechanical repairs, 14 to 21 days is reasonable. Complex repairs requiring specialist parts might justify longer. A repair that drags on for six weeks without clear justification would likely be deemed unreasonable, potentially allowing the customer to move straight to rejection.

You get one attempt. If your first repair fails to fix the fault, or if the same fault recurs, the customer can reject the vehicle without giving you a second chance. This makes diagnostic accuracy critical. Replacing a battery when the real issue is an alternator fault does not count as a genuine repair attempt. The customer can reject after your failed repair, and you have no further right to try again.

Significant inconvenience is equally important. If the repair requires the customer to be without their vehicle for three weeks during a period when they have no alternative transport, that could constitute significant inconvenience even if the repair time itself is reasonable. You should offer courtesy vehicles where possible, particularly for repairs expected to take more than a few days. The CRA 2015 compliance guide for used car dealers provides detailed guidance on managing repair obligations.

During this period, the burden of proof remains with the customer to show that a fault existed at the point of sale, but there is a crucial presumption. For the first six months, any fault that appears is presumed to have existed at the point of sale unless you can prove otherwise. This reverses the normal burden of proof. If a turbocharger fails in month four, the law presumes this was a developing fault present when you sold the vehicle, even if it only became apparent later.

Six Months to Six Years: Burden of Proof Shifts

After six months, the burden of proof shifts back to the customer. They must now demonstrate that any fault existed at the point of sale, which is often difficult for mechanical issues that develop over time. However, if they can prove this, they still have rejection rights, though they must still allow you one repair attempt before exercising those rights.

This shift is significant but not absolute protection. Expert reports, service history, and technical evidence can establish that a fault was developing or inherent at the point of sale even if it only manifested months later. A engine with internal wear patterns consistent with oil starvation that fails in month eight could be traced back to inadequate oil levels at sale if expert analysis supports this.

The rejection right continues for up to six years in England and Wales, or five years in Scotland. These are the limitation periods for breach of contract claims. After this point, customers lose the legal right to pursue rejection, though they may still have claims for misrepresentation if they can prove active concealment or false statements.

Practically, rejections after the first year are rare unless the fault is both serious and clearly traceable to the point of sale. A structural defect, a clocked mileage discovery, or evidence of previous accident damage not disclosed would support rejection even years later. Normal wear and tear, or faults consistent with the vehicle's age and mileage, would not.

What Customers Can Reject For: Satisfactory Quality, Fitness, and Description

The three core requirements under CRA 2015 are satisfactory quality, fitness for purpose, and accurate description. A vehicle must meet all three. Understanding what each means helps you anticipate which faults trigger rejection rights and which do not.

Satisfactory quality considers the vehicle's age, mileage, price, and description. A three-year-old car with 60,000 miles sold for £12,000 must meet different standards than a ten-year-old car with 100,000 miles sold for £3,000. Both must be of satisfactory quality, but what is satisfactory differs. Minor wear appropriate to age and mileage does not breach satisfactory quality. Significant mechanical faults, safety issues, or defects that make the vehicle unroadworthy do breach it regardless of age.

Fitness for purpose covers both general and specific purposes. Every vehicle must be fit for the general purpose of safe road transport. If a customer tells you they need a vehicle for towing a specific weight, or for motorway commuting, or for off-road use, the vehicle must be fit for that particular purpose. Selling a car with a known gearbox weakness to a customer who has told you they will be towing regularly could breach fitness for purpose even if the gearbox is currently functional.

Accurate description includes everything you say or write about the vehicle. Advertised features, verbal representations, and written specifications all form part of the description. If your listing states the vehicle has leather seats and it has vinyl, that is a breach. If you describe a car as having full service history and it does not, that is a breach. The understanding of manufacturer database coverage article explains how to verify specifications accurately to avoid description breaches.

Financial Implications: Full Refunds, Partial Refunds, and Deductions

When a customer exercises their rejection right, you must provide a refund. The amount depends on when the rejection occurs and what use the customer has had from the vehicle. In the first 30 days, the refund must be full, though you can make a deduction for use. After 30 days, if the customer rejects following a failed or unreasonable repair, you can make a deduction for use that reflects the benefit they have had.

Calculating use deductions is not standardised in the legislation. A common approach is to calculate a per-mile or per-day rate based on the vehicle's value and expected lifespan. If you sold a £10,000 car with an expected lifespan of 100,000 miles, each mile might be valued at 10p. A customer who drove 2,000 miles before rejection could face a £200 deduction. This must be reasonable and justifiable; you cannot apply punitive deductions.

You must refund the purchase price. You are not required to refund insurance, fuel, or other running costs the customer has incurred. If the customer part-exchanged a vehicle, you must return that vehicle or pay its agreed value. If you have already sold the part-exchange, you must pay the value in cash.

Finance agreements complicate rejections. If the customer bought on hire purchase or PCP, the finance company owns the vehicle, not you. The customer must reject to the finance company, who will then pursue you under your stocking or recourse agreement. You remain liable for the refund, but the mechanics involve the finance company. The compliance essentials guide covers finance-related rejection procedures.

How to Protect Your Dealership: Documentation and Due Diligence

The best protection against rejection claims is selling vehicles that meet CRA 2015 standards in the first place. Comprehensive pre-sale checks identify faults before they reach customers. Every vehicle you stock should undergo thorough inspection covering mechanical condition, service history verification, mileage validation, and specification confirmation.

Document everything. Your inspection reports, any repairs carried out, the condition at sale, and any disclosures made to the customer all form your defence if a dispute arises. If you identified and disclosed a minor fault, and the customer accepted the vehicle with that fault reflected in a reduced price, you have a defence if they later try to reject for that same issue.

Verifying service history digitally protects you from claims based on inadequate maintenance or developing faults. If you can show the vehicle had complete manufacturer service history with no missed services or warning signs, you have evidence that faults appearing in month three were not present or developing at sale. Factory build data verification ensures your descriptions are accurate, protecting against rejection for mis-described specifications.

Providing customers with detailed handover documentation also protects you. A comprehensive vehicle report showing the checks you have completed, the data sources you have consulted, and the condition verified gives customers confidence and provides evidence of your due diligence. The distance sale pack generator creates compliant documentation for remote sales.

Common Rejection Scenarios and How to Handle Them

Certain scenarios trigger rejection claims more frequently than others. Understanding these helps you respond appropriately and minimise financial exposure.

Engine management light appearing within 30 days is a common trigger. If diagnostics reveal a significant fault, the customer likely has grounds for rejection. If the fault is minor and easily repaired, you should repair immediately and document the fix. If the customer still wants to reject within the 30-day window, they can, but if you have fixed the fault and they have accepted the repair, they may struggle to argue the vehicle was not of satisfactory quality.

Undisclosed accident damage discovered after sale almost always supports rejection, regardless of timing. If a customer obtains a history check that reveals previous Category S damage you did not disclose, they can reject for inaccurate description. This applies even outside the 30-day window because the breach relates to description, not quality.

Mileage discrepancies are similarly serious. If digital service records or MOT history shows the mileage you advertised is incorrect, the customer can reject for mis-description. The guide to spotting clocked mileage explains verification methods.

Intermittent faults create complexity. A fault that appears, disappears, and cannot be replicated during your inspection makes repair difficult. You must still attempt repair within a reasonable time. If you cannot replicate the fault after reasonable investigation, document your attempts and communicate clearly with the customer. If the fault recurs and proves to be significant, they retain rejection rights.

Record-Keeping Requirements to Defend Against Claims

If a rejection dispute reaches court or alternative dispute resolution, your records determine the outcome. Courts expect professional dealers to maintain comprehensive documentation of their sales process, vehicle preparation, and customer interactions.

Your pre-sale inspection report should be detailed and dated. It should cover all major systems, note any faults found and how they were addressed, and confirm the vehicle's condition at the point you took it into stock. If you later sell the vehicle and a customer claims a fault existed at sale, your inspection report is your primary evidence.

Photographic evidence supports your records. Photos of the vehicle's condition, mileage, and any disclosed damage at the point of sale provide objective evidence. If a customer claims a dent was present at sale and you have photos showing it was not, you have clear evidence.

Customer communications should be retained. If a customer asks about specific features or uses, and you provide information, keep those emails or messages. If they later claim you misrepresented something, your communications show what was actually said.

Repair records must be complete. If you attempt a repair during the 30-day to six-month window, document what was done, when, what parts were used, and the outcome. If the customer later claims you did not repair properly or took too long, your records prove otherwise.

FAQ

Can a customer reject a vehicle for a minor cosmetic issue within 30 days?

Minor cosmetic issues that do not affect the vehicle's function, safety, or value typically do not breach satisfactory quality standards, even within the 30-day short-term rejection period. However, if the cosmetic damage was not disclosed and materially affects the vehicle's value or appearance beyond what would be expected for its age and price, it could support rejection for inaccurate description. A small stone chip on a ten-year-old car would not qualify; undisclosed smart repair to multiple panels on a car sold as excellent condition might.

What happens if a customer rejects a vehicle they bought on finance?

When a vehicle is purchased on hire purchase or PCP finance, the finance company legally owns the vehicle until the final payment. The customer must direct their rejection to the finance company, not to you directly. The finance company will then pursue you under the terms of your stocking loan or recourse agreement. You remain ultimately liable for the refund, but the process involves the finance company collecting the vehicle and unwinding the finance agreement before seeking reimbursement from you.

Do I have to accept a rejection if the customer has modified the vehicle?

If a customer has modified a vehicle after purchase, this may affect their rejection rights depending on the nature and extent of modifications. Minor reversible modifications like adding accessories do not typically affect rejection rights if the underlying fault is unrelated to the modifications. However, if modifications have caused or contributed to the fault, or if they have materially altered the vehicle making it impossible to resell in its original condition, you may have grounds to refuse rejection or reduce the refund to account for the diminished value. This is a complex area requiring legal advice in disputed cases.

Can I offer a replacement vehicle instead of a refund?

You can offer a replacement vehicle, but the customer is not obliged to accept it. Under CRA 2015, customers who exercise their rejection right are entitled to a refund. If you offer a replacement and the customer accepts, this resolves the matter by mutual agreement. However, if the customer wants their money back, you cannot force them to accept a replacement instead. Some customers may prefer a replacement, particularly if they need a vehicle immediately and are satisfied with your service otherwise.

How do I calculate a fair deduction for use when refunding?

There is no statutory formula for calculating use deductions, but the deduction must be fair and reasonable, reflecting the actual benefit the customer has had from the vehicle. Common approaches include calculating a per-mile rate based on the vehicle's purchase price and expected remaining lifespan, or a daily rate based on typical depreciation. For example, if you sold a £12,000 car expected to last 80,000 more miles, a rate of 15p per mile might be reasonable. A customer who drove 1,000 miles would face a £150 deduction. The deduction should account for the specific circumstances; minimal use due to the fault being present from early on warrants a smaller deduction than extensive use before the fault appeared.