If the dealer you bought your car from shuts down, it’s natural to worry about your warranty and any comeback you have if something goes wrong. Here’s exactly what happens if a dealership closes after you buy, and your rights in the UK.
Your Statutory Rights Don’t Disappear
The Consumer Rights Act 2015 gives you statutory protection when you buy a used car from a dealership, regardless of whether that dealer later closes down. Your rights are with the seller at the point of purchase, but if the dealer is no longer trading, enforcing those rights directly becomes difficult, which is where other layers of protection matter.
What Happens to Manufacturer Warranties?
If your car came with a manufacturer’s warranty, this remains valid at any authorised dealer for that brand, even if you bought the car elsewhere or your original dealer has closed. You can generally get warranty-covered repairs from any authorised dealership.
What Happens to Dealer-Specific Warranties?
If your warranty was provided directly by the dealership rather than a manufacturer or third party, you may lose that cover if the dealership dissolves completely, since there’s no longer anyone responsible for honouring it. Warranties provided by a separate third-party warranty company, even if arranged through the dealer, often continue since the warranty company still exists independently.
Your Section 75 Protection
If you paid at least part of the purchase price by credit card, you can claim against the credit card company for the full amount under Section 75 of the Consumer Credit Act 1974, even if the dealer has gone out of business. This is one of the strongest protections available and applies regardless of whether you paid the remainder by another method.
What to Do If Your Dealer Has Closed
- Check who supplied the warranty. Contact the warranty company directly if it’s a separate provider from the dealership itself.
- Contact the manufacturer if the car is still under a manufacturer’s warranty, and book repairs at any authorised dealer.
- Check if you paid by credit card. If so, contact your card provider about a Section 75 claim.
- Gather your documentation: keep the sales invoice, warranty paperwork, and any correspondence with the dealer.
- Contact Citizens Advice for free guidance if you’re unsure of your options or need help pursuing a claim.
Frequently Asked Questions
Do I lose my warranty if the dealership closes?
It depends on who provided it. Manufacturer warranties remain valid at any authorised dealer. Dealer-specific warranties may be lost, but third-party warranty company cover often continues.
Can I get my money back if the dealership has closed?
If you paid by credit card, you can claim against the card provider under Section 75, even with the dealer no longer trading. Other payment methods make recovering money considerably harder.
What if I bought the car on finance and the dealer closes?
If you bought through HP or PCP, your agreement is with the finance company, not the dealer, so your rights under the Consumer Rights Act remain with the finance provider regardless of the dealer’s status.
Related reading: want to avoid this situation next time? See our guide on how to choose a trustworthy car dealer in the UK.
Written by the Apriliapartsbuyer editorial team, covering UK car buying guides. This article is for general information only and is not legal advice.
