Is the Consumer Rights Act Protecting Used Car Dealers? Government Defends Rules Amid Calls for a Lemon Law
Government backs the Consumer Rights Act despite dealer calls for a US‑style lemon law. Find out why the rules are under fire.
The Government has defended the heavily‑criticised Consumer Rights Act, even as used‑car dealers across the UK lobby for major reforms.
Last week, a group of retailers identified the Consumer Rights Act as the most wanted piece of legislation to change in order to better support the motor trade. Their concerns centre on three key areas: the 30‑day right to reject, distance‑selling rules and the one‑size‑fits‑all approach to vehicles of vastly different ages.
What are dealers demanding?
Several respondents called for a US‑style “lemon law” that would split coverage by mileage and clearly define which components are covered. One dealer described the existing regulations as “not fit for purpose”. These complaints were submitted to the Department for Business and Trade – the government body responsible for the Consumer Rights Act.
The Department did not grant an interview but issued a written statement backing the current legislation, insisting it “provides clear protections when things go wrong” and that the Government “continues to work with firms to hear how regulations operate in practice”.
A government spokesperson told Car Dealer: “Our consumer‑rights legislation helps people buy with confidence, while providing clear protections when things go wrong. We are always working with business to hear how regulations operate in practice while also supporting them through our Small Business Plan.”
Why do car dealers hate the Consumer Rights Act?
Used‑car dealers argue that the Act is too blunt for the second‑hand market because it treats a 13‑year‑old vehicle the same as a three‑year‑old car, despite the two being “completely different”.
Culloden Cars boss Craig Walker explained that a lemon‑law style framework would not diminish consumer rights; instead, it would give both dealers and buyers greater clarity from the outset.
EV Experts co‑founder Estelle Miller echoed this view, calling for the rules to be “more realistic” for used cars. She highlighted pressure from customers seeking to reject vehicles over manufacturer recalls or faults that surface years after purchase, and labelled the 30‑day distance‑selling return period as “ridiculous”.
Miller argued that while the Act may work for smaller, less complex goods, it is unfair when applied to used cars, which contain hundreds of components and can be poorly maintained.
Infinity Motors founder Sohib Ghafouri added that operating under the current rules is “incredibly difficult” and warned that the situation “cannot continue”.
What could a UK lemon law look like?
Dealer feedback suggests a mileage‑based tiered system, where the level of cover declines as a car ages and accumulates kilometres. Such a system would also specify which parts are included, reducing ambiguity for both sellers and buyers.
Government’s next steps
Although the Department for Business and Trade reiterated its support for the existing framework, it confirmed that it is “always working with business to hear how regulations operate in practice”. No concrete timeline for legislative change has been announced.
The debate was featured in the latest episode of the Car Dealer Podcast, where industry insiders discussed the practical impact of the Act on day‑to‑day operations.
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