If you bought a car from a private seller (not a registered dealer) and something has gone wrong, your options are limited — but you may still have rights in some situations.
Understanding private car sales
Buying a car from a private seller, for example through Facebook Marketplace, can be cheaper. But it comes with fewer legal protections than buying from a registered motor vehicle trader.
In most private sales:
- the Consumer Guarantees Act (CGA) does not apply
- you generally buy the car at your own risk.
However, a private seller must not mislead you. If the seller lied, hid problems, or made false statements, you may have options under other laws.
What to do if your car has a problem
1. Stop using the car if it is unsafe
2. Check your rights in the 'common problems' section
Common problems with cars bought from private sellers
Common problems with private sales include:
- hidden defects
- the seller lied or mislead you
- debt is owing on the car and repossession.
3. Gather evidence early
If you have your evidence ready, it’s easier to explain and support your complaint.
Evidence can be, for example:
- the original ads or listings
- emails, messages, or other communications
- receipts or proof of payment
- photographs
- inspection reports or mechanic assessments
4. Contact the seller in writing
Explain the problem. For example, say that you:
- were misled
- discovered serious faults
- found out there is money owing.
5. Ask for a specific outcome
You may be able to agree on an outcome such as:
- cancelling the sale and getting a full or partial refund
- compensation, for example help with repair costs
- another reasonable arrangement agreed between you and the seller.
6. If the seller refuses to help or disputes the problem
In these cases, your options are:
- cancel the sale or seek compensation
- make a claim through the Disputes Tribunal
Cancel a sale or seek compensation
You may have a claim if the seller:
- lied about the car’s condition, history, or whether money was owing
- failed to disclose serious faults they knew about
- said the car was debt‑free when it was not
- did not have the legal right to sell the car
Evidence is important. This may include:
- advertisements or written messages
- mechanic or inspection reports
- Personal Property Securities Register (PPSR) search results
- witness statements.
Guide to using the PPSR(external link) – Personal Property Securities Register (PPSR)
If one of these situations applies, use the How to complain section to help raise the issue with the seller.
If you can’t reach agreement, the complaints section explains how to take the matter further. This includes cancelling the sale or getting compensation through the Disputes Tribunal.
Disputes Tribunal
If you cannot resolve the issue with the seller, you can claim through the Disputes Tribunal.
The Tribunal:
- is quicker and cheaper than court
- does not use lawyers
- can hear disputes involving private sellers.
The Tribunal may order the seller to:
- cancel the sale and refund you
- pay compensation for loss
How to make a claim through the Disputes Tribunal
Note:
The Motor Vehicle Disputes Tribunal does not deal with private sellers.
Common problems with cars bought from private sellers
The car breaks down shortly after purchase
You generally cannot demand a refund or repair because the car fails. The Consumer Guarantees Act (CGA) does not apply to private sales.
You may have options if you can show the seller:
- lied about the condition, or
- knew about a serious fault and did not tell you.
If so, you may be able to seek:
- cancellation of the sale under the Contract and Commercial Law Act (CCLA), or
- compensation through the Disputes Tribunal.
Car has serious hidden defects
Private sellers do not have to guarantee quality.
They must not mislead you. For example, if the seller:
- knew about serious defects, and
- did not disclose them.
If you can show misleading conduct, then under the Fair Trading Act (FTA) you may be able to:
- cancel the sale, or
- claim compensation through the Disputes Tribunal.
If the seller said the car was "in good condition"
Statements like “runs well” or “good condition” can still be misleading.
What matters is:
- exactly what the seller said or advertised
- what the seller knew at the time.
If the seller knew the statement was false or misleading, this may be misleading conduct. And under the Fair Trading Act you may have a legal claim.
Car repossessed and the seller did not disclose there was money owed
If the seller said the car was “debt‑free” or failed to tell you about money owing, this may be misrepresentation.
You may be able to:
- cancel the contract, or
- claim compensation from the seller.
If it was undisclosed debt, a PPSR search can help show whether money was owing on the car at the time of sale.
The PPSR shows any debt or obligation attached to goods you want to buy.
Guide to using the PPSR(external link) – Personal Property Securities Register (PPSR)
The seller relies on "as is, where is"
“As is, where is” means you accept faults you could have found through inspection.
It does not protect a seller who:
- knew about serious faults or debt, and
- withheld information from you.
If the seller was dishonest, you may still have a legal claim.
A dealer is pretending to be a private seller
Someone may be a motor vehicle trader if they:
- sell more than 6 vehicles a year, or
- imports more than 3 vehicles a year.
If your seller is in trade and a registered motor vehicle trader:
- the Consumer Guarantees Act (CGA) applies
- you have the same rights as buying from a registered motor vehicle dealer.
Check if your seller is registered(external link) – Motor Vehicle Traders Register
If they're registered, see what to do on:
Problem car bought from a registered dealer
If the seller is not registered the CGA does not apply. Your options are:
- try to resolve the issue with the dealer, or
- make a claim to the Disputes Tribunal.
There is money owing on the car
If there is a registered security interest, a finance company can repossess the car. They can do this even if you did not know about the debt.
If a repossession agent contacts you
You do not need to hand the car over immediately.
You can:
- ask for proof of the security interest
- take time to get advice.
Situations when a finance company cannot repossess
A finance company may not be able to repossess the car in some situations, for example if:
- the car was low value when the borrower took out the loan
- the security interest was not registered before you bought the car
- the PPSR details were incorrect
- a registered dealer the car and failed to disclose the debt
If this applies, you may have stronger grounds to challenge the repossession or seek a remedy. This could be a cancellation of the sale or compensation.
If the debt is valid
Your options are to:
- pay the remaining debt (and negotiate if possible)
- return the car
- do nothing (which may lead to court action and extra costs).
If the car is later sold for more than the debt, you should have that money returned to you.
You may still have a claim against the seller if they knew about the debt and did not disclose it.
What laws apply to private car sales
When you buy a car from a private seller, it comes with fewer legal protections than a car from a registered dealer.
This means there is no automatic guarantee that the car:
- is of acceptable quality
- will last a reasonable time
- is fit for purpose.
Fair Trading Act (FTA)
Private sellers must not:
- mislead you
- make false statements
- hide known defects or debt.
The FTA may apply even if the car still runs.
Contract and misrepresentation law (CCLA)
You may have remedies if the seller:
- made a clear statement or promise, and
- that statement was false.
Possible remedies include:
- cancelling the sale
- compensation (damages).
The Disputes Tribunal decides on these remedies if you can’t reach agreement with the seller.
More help
- Citizens Advice Bureau (CAB) — a free, independent service, run by volunteers. They can offer advice on your consumer rights and obligations, in person, by phone, or online.
- Community Law Centre — offers free one-on-one legal advice to people with limited finances. The organisation has 24 community law centres throughout the country. You can find legal information and other resources on its website.
- What is the PPSR?
Find a CAB(external link) — Citizens Advice Bureau
Our law centres(external link) — Community Law Centres
What is the PPSR?(external link) — Personal Property Securities Register
Search the motor vehicle traders register(external link) — Motor Vehicle Traders Register