7:00 am, August 11, 2026
Car dealers have called for changes to the Consumer Rights Act, which has been dubbed ‘not fit for purpose’ for the motor trade.
Car Dealer has approached multiple independent and franchised dealers asking them for the one piece of legislation they would like to see the government change to better support the motor trade.
Every independent dealer we spoke to pointed to the Consumer Rights Act (CRA), with retailers wanting a more tailored approach.
Among the changes dealers called for were tweaks to distance selling laws and different rules for different ages of vehicle.
Explaining the current issues, Craig Walker, boss of Culloden Cars, said: ‘The Consumer Rights Act 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.’
He would like to see the UK take a similar approach to the US and adopt a ‘lemon law’ that splits cover by mileage and is explicit in which parts are included.
‘The Americans and specially New York does it differently,’ he told Car Dealer.
‘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 side know exactly what’s going on.
‘I’m not asking for fewer consumer rights, far from it. Consumers should be protected and naughty dealers should be held to account.
‘For me, older cars need a different approach, or dealers will keep walking away from them and the buyer with two grand moves into the private section with no protection and they are left at risk.’
Elsewhere, EV Experts co-founder Estelle Miller called for the regulations to be made ‘more realistic’.
Miller, who runs the Surrey-based electric car retailer with her husband Martin, told Car Dealer: ‘I would like used cars to have more realistic consumer rights.
‘At the moment unreasonable consumers are hassling traders for rejections when there have been manufacturer recalls or faults or for repairs years after a car has been purchased. The distance selling directive with a 30 day return period is also ridiculous.
‘CRA and DSD work for smaller less complex goods but are unfair on used car traders. The legislation is not fit for purpose for a used car that has many components and can be operated and/or maintained poorly.’
Meanwhile, Sohib Ghafouri, founder of Infinity Motors said the current rules ‘cannot continue’.
He said: ‘I would amend the Consumer Rights Acts 2015 around used cars to provide some breathing space for retailers.
‘It has now become incredibly difficult to operate a car dealership with the level of backing and support the regulation provides the customer to the detriment of the retailer.
‘This cannot continue!’
IMDA members demand change
In response t0 Car Dealer’s approach, Umesh Samani, chairman of the Independent Motor Dealers Association (IMDA) put the question out to the group’s members to gauge their opinions.
The majority of responses from those dealers also called for changes to the CRA, with members once again highlighting America’s ‘lemon law’ as a source of inspiration.
One dealer said: ‘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 current system under the Consumer Rights Act is often open to interpretation, which can lead to uncertainty for both customers and dealers.
‘A UK lemon law would set out a much clearer framework for when a vehicle is genuinely defective and what the responsibilities of both parties are.
‘This wouldn’t just benefit consumers, it would also protect reputable dealers. The vast majority of independent dealers invest heavily in preparing vehicles, carrying out inspections and resolving genuine issues quickly.
‘Unfortunately, some businesses exploit grey areas, while some customers have unrealistic expectations that any fault on a used car automatically entitles them to reject it.
‘A well written lemon law would provide clarity and consistency for dealers and consumers; reduce costly disputes and unnecessary legal claims.; help remove rogue traders from the industry while protecting reputable businesses; increase consumer confidence in buying from franchised and independent dealers alike and allow dealers to operate with greater certainty, knowing exactly where they stand when genuine faults occur.
‘Ultimately, clear legislation benefits everyone. Customers gain confidence, good dealers are protected, and the industry becomes more transparent and trusted.’
Another added: ‘We need to make consumer rights fit for purpose when it comes to used cars and stop the idiotic 30-day refund policy.’
Away from the CRA, other IMDA members wanted to see a formal licensing scheme for used car dealers, to crack down on kerbside traders.
Gareth Angove, head of membership services for the IMDA, said: ‘I would like all independent motor dealers to have a license (as per Scotland), be registered to a trade association and appear on a licensed dealer register.
‘We know we are in early discussion with other relevant bodies regards this in terms of facilitation and “What constitutes a used car dealer” but weeding out those not willing to be licensed would also benefit the used car industry.’
Another member added: ‘I definitely want to see registration of independent dealers, and crack down on kerbside traders.’
Other suggestions included a reduction in FCA fees and a clampdown on dodgy finance brokers.
Franchised dealers want ZEV mandate change
From a franchised perspective, dealers repeated calls for clearer EV policy.
Vertu boss Robert Forrester told Car Dealer he would ‘reduce state intervention in the new car market’ and accused the ZEV mandate of ‘causing major damage to the UK economy’.
Car Dealer reported last week that the government is considering watering down ZEV Mandate targets to as little as 50%.
The Times reports that the Department for Transport is set to launch a consultation this week proposing further relaxations to the controversial rules.
Under the existing mandate, 33% of manufacturers’ new car sales are required to be zero emission this year, with the headline target rising progressively to 80% in 2030.
However, The Times believes that ministers will now consult on lowering the 2030 requirement to 70%, 60% or potentially just 50%.
Forrester said: ‘If I could make one policy change, it 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.
‘It requires radical remodelling if the damage is to be reversed, with targets more closely aligned to real-world consumer demands.’
Meanwhile, Vicky Hart, marketing director at Waylands, said she wanted an EV policy that would ‘help the industry plan for the future with confidence’.
‘I’d like to see greater long-term certainty around the transition to electric vehicles,’ she said.
‘Consumers are navigating significant change, and confidence is key when making major purchasing decisions.
‘Clear, consistent policy on incentives, infrastructure and taxation would help create stability for customers and businesses alike, supporting investment, driving demand, and helping the industry plan for the future with confidence.’