The protection you have if you buy a car under credit
14th August 2010
Credit can be very hard to find in the current economic climate that we have found ourselves in. Another challenge can be ensuring that you are protected against any unfortunate mishaps which can arise because of the warranty that you receive with your car. In this report, we are going to look at the different systems which are in place to protect you in the event that things go wrong.
“If you buy a new car under credit, you have the right to go back to your dealer in order to request for a repair to be given if it is faulty – this is an entitlement that you have under warranty. However, if a dealer cannot fix the car that you have, what are the financial implications that remain for the outstanding balance you owe your credit company?
First of all, you need to try and stop using the car as soon as possible. This is because the longer you use it for, the likelier it is that a dealer will be able to connect the fault with the car to your usage of the vehicle. Whilst the car is in repair, you do have the entitlement to request a courtesy car too, or compensation for the money you had to invest in getting one yourself.
If you have bad credit, one of the main fears can be that the entire debacle will affect the chances that you might have to get a new car as a replacement. The main tip in the event that you receive a new, faulty car is to remain in constant correspondence with the credit company who you have the agreement with for your car loan. This way, they can remain completely up to date on the paper trail which is concerned with trying to get the new car repaired.
It is the Consumer Credit Act which can protect you in the event that you get a faulty car. You should be able to get a full refund for the money which you have already paid, as well the opportunity to invest in a new car. Do bear in mind that the worst thing you can do is to stop paying instalments on your credit plan – this can jeopardise your future credit chances, eliminating your chances on moving on from this car onto your next.
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