Search

How can we help?

Icon

A Brief Overview of the Law Relating to Late Delivery

When purchasing a car, consumers want their new vehicle as soon as possible.  If you look at any internet car forum or motoring magazine these days, it is not uncommon to find complaints about the late delivery of new vehicles and enquiries about what legal action consumers can take.

The two main options are: (i) terminating the contract and refusing to take delivery of the new vehicle when it is ready, and/or (ii) seeking compensation.

Typically, sale contracts used by retailers do not allow the purchaser to terminate straightaway due to late delivery of the vehicle.  The contract would have to specifically state that time for delivery was “of the essence” or words to that effect for the consumer to have an immediate right to terminate.  For obvious reasons, retailers do not include this term in their sale contracts and often will say exactly the opposite.  Merely including a date for delivery in the agreement does not automatically make time of the essence.

In cases where the sale contract does not make time for delivery ‘of the essence’, a consumer who has been subjected to unreasonable delay may be able to impose a deadline for delivery by serving notice on the retailer.  If that deadline is missed, the consumer may then be able to terminate the contract, demand a refund of the deposit and seek compensation.  It should be noted however that some legal commentators disagree with this view, so dealers should always take specific legal advice if served with or relying upon such a notice.

In some cases, compensation claims may be substantial where, for example, the consumer has to pay more to buy the same vehicle from another retailer.  Even in cases where the compensation claim is low value, the dealer will still have lost the profit they would have made on the transaction and no doubt have sent the customer in the direction of one of their competitors.

In cases where the right to terminate has not arisen, the customer cannot withdraw from the agreement and remains liable to pay the agreed purchase price.  They may still be entitled, however, to claim compensation from the dealer for late delivery.

If that deadline is missed, the consumer may then be able to terminate the contract, demand a refund of the deposit and seek compensation.

If the contract does not state a date for delivery, English law provides that the vehicle should be delivered by the seller within a reasonable time.  What is ‘reasonable’ will depend on the facts of each case.  It is arguable, however, that a longer period for delivery may be regarded as reasonable in the case of a hand built, supercar, than in the case of a mass produced, family hatchback.

Most dealers will already have comprehensive Terms and Conditions in place that deal with late delivery.  Dealers should note however that the late delivery of goods has been recognised as a major source of consumer discord and that the law in this area may be tightened.  In the meantime, dealers would be wise not to commit to unrealistic delivery dates.

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

About this article

Read, listen and watch our latest insights

art
  • 15 September 2025
  • Immigration

Sharp rise in Sponsor Licence Revocations – What employers need to know

The Home Office has reported a record number of sponsor licence revocations over the past year, as part of its intensified efforts to crack down on abuse of the UK’s immigration system.

art
  • 10 September 2025
  • Commercial Real Estate

Trouble at the Table: The Challenges Facing the UK Hospitality Sector in the run up to Christmas 2025

The UK hospitality sector, long celebrated for its vibrancy and resilience, is facing a perfect storm of economic, operational, and structural challenges in 2025.

art
  • 09 September 2025
  • Commercial Real Estate

Le bail commercial anglais: quelques points essentiels à considérer

Typiquement, les baux commerciaux en Angleterre sont de court terme, d’une durée de 5 ou 10 ans, avec un loyer de marché et des ajustements du loyer périodiques en fonction de l’inflation ou d’autres facteurs. 

art
  • 09 September 2025
  • Corporate and M&A

The Failure to Prevent Fraud Offence – be prepared to avoid criminal liability

The failure to prevent fraud offence is a new corporate offence which has come into force on 1 September 2025.

art
  • 08 September 2025
  • Employment

Can employers still make changes to contracts after the Employment Rights Bill?

The short answer is yes but it will be much more difficult for employers following the introduction of the Employment Rights Bill because their ability to fairly dismiss employees who do not agree contractual changes is being restricted. 

art
  • 05 September 2025
  • Privacy and Data Protection

When Ignoring a DSAR Becomes a Criminal Offence

On 3 September 2025, Mr Jason Blake appeared at Beverley Magistrates Court and was fined for failing to respond to a data subject access request (DSAR).