The Consumer Rights Act remains one of the most important pieces of consumer legislation introduced over the past decade. It has strengthened consumer confidence, raised standards across the motor retail sector and provided valuable protection for motorists purchasing used vehicles. Few would argue against those principles.
What deserves greater attention, however, is not the legislation itself, but how it is operating in today’s used vehicle market.
Recent figures from The Motor Ombudsman recorded a 14% increase in disputes relating to used vehicle purchases during 2025, with more than 18,500 cases opened by consumers. Used vehicle disputes now account for around 40% of all complaints handled by the Ombudsman.
Against the backdrop of millions of used vehicle transactions every year, that remains a relatively small proportion of sales. Yet the direction of travel is clear and should prompt the industry to ask an important question: what is driving this increase, and what impact is it having on dealerships?
Our recent research among more than 100 UK motor retailers helps answer that question. More importantly, it reveals what those statistics look like in practice. The most striking finding wasn’t simply that disputes are becoming more common; it was the extent to which they are beginning to influence everyday business decisions.
More than eight in ten dealers told us they had already changed their stock buying or retailing practices because of concerns surrounding Consumer Rights Act disputes. Businesses are adapting the way they operate, not because vehicles have become less reliable, but because they believe the commercial risks associated with resolving disputes have increased. Some retailers are deliberately stocking newer, lower-mileage vehicles.
Others have withdrawn from distance selling, while many have invested significantly more time and resource into pre-sale inspections and vehicle preparation. These aren’t isolated business decisions; they are signs that Consumer Rights Act disputes are beginning to shape how parts of the used vehicle market operate.
Some retailers are deliberately avoiding particular engine types and vehicle profiles altogether. Others report spending significantly longer inspecting vehicles before sale, while one dealership has gone as far as employing an additional technician to strengthen its pre-sale inspection process. Individually, these may appear to be sensible commercial decisions. Collectively, they tell a much bigger story.
They suggest that Consumer Rights Act disputes are no longer simply influencing what happens after a vehicle is sold- they are beginning to shape how reputable dealers buy, prepare and retail used vehicles in the first place. That should concern the entire industry.
The cost nobody sees
Public debate around the Consumer Rights Act understandably focuses on the consumer experience. Much less attention is paid to the cumulative impact disputes have on the businesses responsible for resolving them. The financial cost of repairing a vehicle is often only a fraction of the overall burden.
Every dispute generates management time. It requires customer communication, workshop investigations, technical diagnostics, independent inspections, discussions with finance providers and, in some cases, legal advice. Vehicles can remain out of stock for weeks while cases are investigated or challenged. Workshop capacity is diverted, management attention is redirected and resources that could otherwise be invested in customers or business growth are absorbed by a single case.
None of those costs appear on a repair invoice, yet every dealer understands their impact. One respondent captured that reality more honestly than any statistic could. Asked to describe the most significant Consumer Rights Act dispute they had experienced, they began writing their response before concluding: “I started to construct an essay on some of the many scenarios but began to feel ill and had to have a lie down.” The comment may raise a smile, but it reflects something far more important. The real cost isn’t one difficult customer. It’s the cumulative effect of dozens of increasingly complex disputes that consume management time, workshop resource, legal costs and emotional energy across dealership teams.
The same conversations are happening across the country
Perhaps the most striking aspect of our research wasn’t the individual disputes. It was how often the same themes appeared, regardless of the size of the dealership or where it was based. One dealer described a customer attempting to reject a vehicle without allowing any opportunity to investigate or repair the reported fault. The dispute continued for six months, involved repeated legal threats and remained unresolved despite Trading Standards agreeing with the dealer’s interpretation of the legislation.
Another retailer explained how what should have been a straightforward starter motor replacement became an immediate demand for a full vehicle rejection. Elsewhere, one business funded a replacement alloy wheel costing more than £600 after a dispute escalated through a finance company, while another is currently defending court proceedings after a customer drove more than 5,000 miles before suffering a mechanical failure. No single example proves the legislation is failing.
What these stories do demonstrate is that retailers from every part of the country are describing remarkably similar experiences. When independent and franchised retailers dealers all begin telling the same story, it suggests we are no longer looking at isolated disputes. We are looking at an operational challenge that is becoming embedded across the used vehicle sector.
This isn’t about dealers versus consumers
One misconception that often arises whenever this subject is discussed is that dealers are somehow arguing against consumer protection. Nothing could be further from the truth. The Consumer Rights Act has played an important role in strengthening consumer confidence and raising standards across the used vehicle market. Without trust, the market simply doesn’t function.
Equally, reputable dealers need confidence that they will have a fair opportunity to investigate complex faults, apply professional judgement and resolve genuine issues before positions become entrenched or disputes escalate unnecessarily. Ultimately, both consumers and retailers want the same outcome: a fair, transparent and efficient resolution when something goes wrong.
That balance benefits everyone. Symon Cook, Head of Operations and Member Services at the National Franchised Dealers Association (NFDA), believes improving understanding of how the legislation operates in practice would benefit both consumers and retailers.
“Franchised dealers are committed to delivering high standards of customer service and resolving genuine issues quickly and professionally. The Consumer Rights Act plays an important role in maintaining consumer confidence, and our members fully recognise the importance of those protections.
“However, today’s dealerships are operating in an increasingly complex environment. Modern vehicles are more technologically advanced than ever before, while customer expectations continue to evolve. Anything that improves understanding of how consumer legislation is applied in practice, whether through clearer guidance, better education or greater consistency, has the potential to benefit consumers and retailers alike.”
A conversation the industry can no longer ignore
If there is one conclusion I have drawn from both our research and the many conversations I’ve had with dealers over the past year, it is this: the issue is no longer about individual Consumer Rights Act disputes. When retailers begin changing the vehicles they buy, the way they prepare stock, the services they offer and the commercial risks they are prepared to accept, we are looking at something far more significant than isolated complaints. We are seeing the operational impact of Consumer Rights Act disputes being felt across the used vehicle sector.
That doesn’t mean the legislation has failed. Nor does it mean consumers deserve less protection. But ten years after the Consumer Rights Act came into force, it is entirely reasonable to ask whether its practical application has kept pace with the realities of today’s used vehicle market. Vehicles are more technologically advanced, repairs are more complex and customer expectations continue to evolve.
Recognising that reality is not about weakening consumer rights. It is about ensuring the legislation continues to deliver what it was always intended to achieve: confidence, fairness and clarity for everyone involved.
John Colinswood is CEO at Warranty Solutions Group
