Consumer rights explained: How do I get a refund for a faulty car that I bought on finance?

Q: I bought a second-hand car through hire purchase last October and have had intermittent issues with it ever since. It sometimes shudders when it goes above 80 km/hr and the engine light comes and goes. 

I returned the car to the dealership for a repair in early November, but the issue still wasn’t fixed. After contacting the finance company a couple of weeks ago, I brought the car back a second time. Though the garage said it couldn’t find any issues, the problems returned. 

I’ve now lost confidence in the garage’s ability to do the repairs and want to return the car. What should I do when the finance company owns the car, but the garage hasn’t been able to fix it? 

Tom, Dublin

Tom, your question is a good reminder of the issues that can crop up when using a finance plan to buy items that turn out to be faulty.

As you know, when you signed up to a finance plan to buy the car, you entered a sales contract with both the finance company and the garage. The finance company owns the car and is leasing it to you until the end of the hire purchase agreement. 

Even though the car is second-hand, it must still meet the terms of sales contract and finance plan you entered. In other words, it must be fit for purpose and as durable as other similar cars through normal use.

From your question, you have had recurring problems with your car over the past few months, despite the garage’s efforts to repair them. Because you bought the car on hire purchase, the responsibility for resolving any issues rests with both the finance company, as the owner of the car, and the garage, as the seller. 

I recommend that you email both the garage and the finance company again about the ongoing issues with the car, your past contact with both of them and the resolution you’re seeking. Since you say that you have lost confidence in the garage’s ability to repair the issues, you are entitled under consumer law to request that you return your car for a suitable replacement or a full refund. 

If you don’t receive a satisfactory response from the garage, it is open to you to report it to SIMI (simi.ie) if it is a member. If the finance company doesn’t resolve the issue, you can make a formal complaint to the Financial Services and Pensions Ombudsman (fspo.ie). 

You also have the option to take a claim through the courts against both the garage and the finance company if you’re unhappy with their response. However, get formal legal advice first because your claim (the sale price of the car) will likely exceed the small claims court limit of €2,000 and could involve substantial legal costs. 

Originally published in the Sunday Independent on 8 February 2026: Your questions answered on Irish consumer rights | Irish Independent