Should the UK Adopt a US‑Style Lemon Law to Replace the Consumer Rights Act for Used Cars?
Can a US‑style lemon law give used‑car dealers fairer protection? Find out what UK dealers are demanding.
Car dealers across the UK are urging a rewrite of the Consumer Rights Act (CRA), arguing it is not fit for purpose for the motor trade.
Why dealers want a new approach
Dealer Magazine surveyed a mix of independent and franchised dealers, asking each which piece of legislation they would most like to see altered. Every independent dealer interviewed pointed to the Consumer Rights Act as the key barrier to a sustainable used‑car market.
Age‑based rules and distance‑selling concerns
Respondents highlighted two main pain points: the current distance‑selling rules and the fact that the CRA treats a 13‑year‑old vehicle the same as a three‑year‑old one. Craig Walker, managing director of Culloden Cars, explained that “the CRA treats a 13‑year‑old car the same as a three‑year‑old one. The rules are the same, but the product is completely different.”
Walker proposes a UK‑wide “lemon law” modelled on the United States, where coverage is split by mileage and the parts covered are spelled out from day one. He noted that “the Americans – especially New York – do it differently. Their used‑car lemon law splits cover by mileage and names exactly which parts are included. It’s not a soft touch, that warranty is compulsory but it’s clear on day one, both sides know exactly what’s going on.”
He stressed that he is not calling for fewer consumer rights, but for a system that recognises the different risk profile of older vehicles, preventing dealers from “walking away from them and the buyer with two grand moves into the private section with no protection.”
Calls for realistic rights from EV specialists
Estelle Miller, co‑founder of EV Experts, echoed the sentiment, asking for “more realistic consumer rights” for used cars. Miller argued that unreasonable claims are made against traders for faults that stem from manufacturer recalls or from repairs performed years after purchase. She described the current 30‑day return period under the distance‑selling directive as “ridiculous” for used‑car transactions, noting that the CRA and DSD work for smaller, less complex goods but are unfair for vehicles with many components and variable maintenance histories.
Industry bodies weigh in
Sohib Ghafouri, founder of Infinity Motors, warned that the present rules “cannot continue” and called for amendments that give retailers “some breathing space.” He said the level of backing the regulation provides to the customer is now detrimental to the retailer.
IMDA members demand change
Following the survey, Umesh Samani, chairman of the Independent Motor Dealers Association (IMDA), asked members for their views. The majority again singled out the CRA and repeatedly cited America’s lemon law as a model.
What a UK lemon law could achieve
One dealer summed it up: “If I could choose one policy change, it would be for the UK to introduce a clear lemon law, similar to the legislation in many parts of the USA.” The dealer explained that the current system “is often open to interpretation, which can lead to uncertainty for both customers and dealers.” A well‑written lemon law, they argued, would set out a clear framework for genuine defects, protect reputable dealers, reduce costly disputes and help remove rogue traders.
Another member added that the 30‑day refund policy is “idiotic” for used‑car sales and should be scrapped.
Beyond the CRA – licensing and fees
Other IMDA suggestions focused on a formal licensing scheme for used‑car dealers to curb kerbside traders. Gareth Angove, head of membership services for the IMDA, said he would like “all independent motor dealers to have a licence (as per Scotland), be registered to a trade association and appear on a licensed dealer register.” Additional ideas included reducing FCA fees and tightening controls on dubious finance brokers.
Franchised dealers’ perspective on the ZEV mandate
From the franchised side, the conversation turned to electric‑vehicle policy. Robert Forrester, boss of Vertu, called for a reduction in state intervention, describing the Zero‑Emission Vehicle (ZEV) mandate as “causing major damage to the UK economy.” Recent media reports indicate the Department for Transport is consulting on lowering the 2030 ZEV target, potentially to 50 %.
Forrester said his one policy wish would be “to reduce state intervention in the new‑car market as the ZEV mandate policy is causing major damage to the UK economy and the automotive sector in particular.” He added that the targets need “radical remodelling if the damage is to be reversed, with targets more closely aligned to real‑world consumer demands.”
Vicky Hart, marketing director at Waylands, echoed the need for certainty, stating she wants “greater long‑term certainty around the transition to electric vehicles.” She highlighted that clear, consistent policy on incentives, infrastructure and taxation would give both customers and businesses the confidence to invest and plan for the future.
Take part in shaping the future
The post Car dealers have their say: We want a US‑style ‘lemon law’ to replace Consumer Rights Act appeared first on Car Dealer Magazine.