Who Pays for Repairs While a Car Is on Finance?

You usually pay for routine maintenance and wear while using a financed car, unless a service or maintenance package covers the work. A defect that made the car unsatisfactory when supplied is different: on PCP or hire purchase, the finance provider may be responsible. Warranty claims and accident damage have their own routes.

The fact that you still owe money does not make every repair the lender's bill. Equally, being told that a used car has no warranty does not remove your statutory rights. Start by identifying why the repair is needed and who supplied the car.

Identify why the repair is needed

A worn tyre after months of ordinary use is a different problem from a gearbox defect present when the vehicle was supplied. A service interval becoming due is different again from damage caused by an accident.

Use these questions to decide where to start:

• Is this scheduled servicing or normal wear?
• Was the fault present, developing or unexpectedly likely when the car was supplied?
• Does a manufacturer or dealer warranty cover the affected part?
• Was the damage caused by a collision, theft, flood or another insured event?
• Did previous repairs, poor maintenance or a modification contribute?

More than one route can overlap. A warranty may cover a defect that also raises consumer-rights issues. Record what each party proposes so a warranty referral does not leave your complaint about the original supply unanswered.

Who may cover the bill?

Routine wear, servicing and maintenance packages

Finance agreements generally require you to look after the vehicle and follow the required service schedule. Budget for items such as tyres, brakes and servicing unless your package specifically includes them. A monthly car payment is not automatically an all-inclusive running-cost plan.

Read any service plan carefully. It may cover scheduled oil changes and inspections but exclude tyres, damage or repairs. A maintenance package may be broader, although exclusions and approval requirements still matter.

Ask for an itemised diagnosis when a garage says a part is worn. The car’s age, mileage, service history and distance you have driven help establish whether the bill is ordinary upkeep or needs investigation.

A defect present when the car was supplied

For PCP and HP, the finance provider is normally the supplier under the agreement and is responsible for the car meeting the required quality standard when supplied. A reasonable expectation depends on age, mileage, price and description; a used car does not have to be indistinguishable from new.

Under the Consumer Rights Act, qualifying faults can give rights to reject, repair, replacement or a price reduction. The short-term rejection period is generally 30 days. After that, repair or replacement commonly comes first, subject to the circumstances. A failed repair or an unreasonable delay can affect the next remedy.

When seeking repair, replacement, a price reduction or final rejection, faults emerging within the first six months are generally presumed to have existed at delivery unless the business shows otherwise or the presumption is incompatible with the goods or fault. Short-term rejection has a different evidence requirement: you must show the fault was present at supply. This is not a promise of six months of free maintenance. A puncture caused by a nail after collection does not become the lender's responsibility simply because it happened quickly.

If you bought with a separate personal loan, the seller's role differs because the loan company does not normally supply the car. The way the purchase was funded matters when deciding whom to complain to.

A warranty claim

Read the warranty's covered parts, claim limit, labour rate, excess, exclusions and servicing conditions. A warranty company may require approval before dismantling or repairs. Ask who pays for diagnosis if the claim is declined.

A refusal under the warranty does not automatically settle whether the supplied car met consumer law. Raise that separate issue where appropriate. Our guide to faulty cars bought on finance explains the wider complaint route.

If the problem follows a modification, tell the garage and lender exactly what changed. The cause matters. Do not remove records or conceal work to make a claim appear stronger.

Before authorising diagnosis or a major repair

Contact the dealer and finance provider with the symptoms, mileage and dates. Ask how they want the vehicle inspected and whether they will authorise diagnostic work or recovery. Obtain that position before paying for a major repair and expecting reimbursement.

Give a clear description rather than attempting to diagnose the problem yourself. For example, explain that the gearbox warning appeared at a particular mileage and attach the breakdown report. Keep photographs, videos, invoices and all correspondence.

If the vehicle may be unsafe, stop using it and arrange appropriate assistance. Ask a qualified garage whether further driving could worsen the fault. Being cautious about the car's use should not mean agreeing that you caused the defect.

Payments and an unresolved repair complaint

Continue the agreed finance payments unless the lender confirms another arrangement. Stopping a Direct Debit does not itself cancel the agreement or resolve a repair dispute, and can create arrears alongside the original problem.

If paying both the repair bill and finance payment is unaffordable, tell the lender promptly and ask about support while the matter is reviewed. Request a written explanation of any proposal and its effect on the balance and credit record.

For an unresolved quality complaint, complain formally to the finance provider. Keep a short timeline and state the remedy you want. If you remain dissatisfied, the Financial Ombudsman may be able to consider the case after the provider's final response or the usual eight-week response period. Follow the deadline in the response letter rather than allowing a long repair discussion to drift indefinitely.