Motor Trade: Repair Bills, Rejected Cars and Insurer Shortfalls

The disputes that actually come up

• Unpaid repair bills. The customer disputes the price, says extra work was never authorised, or collects the car and never pays.
• "It was fine before you touched it". A new fault blamed on recent work.
• Used car rejections. A buyer says the car was faulty or not as described and wants a refund or a repair.
• Insurer shortfalls. A body shop’s bill is only partly paid by the customer’s insurer.
• Abandoned vehicles. A customer leaves a car and stops responding, running up storage.

The law that usually applies

• Consumer Rights Act 2015, goods. A car sold by a trader to a consumer must be of satisfactory quality, fit for purpose and as described. Satisfactory quality takes account of age, mileage and price, so normal wear on an older car is not a fault.
• The buyer’s remedies. A short-term right to reject within 30 days of delivery. After that, the dealer gets one chance to repair or replace. If that fails, the buyer can reject or claim a price reduction, and for a vehicle the dealer can usually deduct an amount for the use the buyer has had. A fault that appears within six months is presumed to have been there at delivery unless the dealer shows otherwise.
• Hire purchase. If the car was bought on hire purchase, the finance company is legally the supplier, so a rejection claim is usually against it rather than the dealer.
• Consumer Rights Act 2015, services. Repairs must be done with reasonable care and skill. If no price was agreed, the customer pays a reasonable price. Anything you told the customer about the work that they relied on can become a term.
• Business buyers and trade sales. The Sale of Goods Act 1979 and Supply of Goods and Services Act 1982 apply instead, and liability can be limited by contract if the term is reasonable.
• Liens and uncollected vehicles. A garage that has repaired a vehicle at the owner’s request generally has a lien: it can keep the vehicle until the bill for that work is paid. The lien is lost once the car is released. For vehicles that are never collected, the Torts (Interference with Goods) Act 1977 sets out the notice you must give before selling.

If you are owed money, and if you are being sued

Claiming a bill. Your job card, the customer’s authorisation (ideally a text or signed estimate) and any call notes for extra work are the core evidence. Claim against whoever instructed you. If an insurer has paid only part of a repair the customer authorised, the customer usually remains liable for the balance unless your agreement was with the insurer.

Defending a rejection. Check the dates first: inside 30 days the buyer can simply reject a faulty car; inside six months you have to show the fault was not present at sale. Keep the pre-sale inspection, MOT history, service records, the advert and anything said about the car’s condition. An independent inspection, offered early, often decides these cases. The defence toolkit is built for the defendant side.

Before you issue: which letter, and how long to wait

A garage or dealer chasing a private customer is a business claiming a debt from an individual, so the Pre-Action Protocol for Debt Claims applies: a Letter of Claim with the information sheet and reply form, and 30 days to respond. Chasing a business customer or fleet, the Practice Direction on Pre-Action Conduct applies, usually with 14 days. A customer claiming against you is also expected to follow the Practice Direction before suing.

The route through the small claims track

1. Pull the job file. Job card, estimate, authorisations, parts invoices, photos, and the vehicle’s MOT and service history.
2. Talk to the customer, then write. If there is a complaint, offer an inspection. If it is non-payment, send an invoice reminder before the formal letter.
3. Send the letter before claim. 30 days for a private customer, usually 14 days for a business.
4. Issue the claim online. If the deadline in your letter passes without payment, you can issue the claim yourself through Money Claim Online or the GOV.UK "Make a money claim" service. You state a fixed sum, a short description of the claim and any interest, and pay the issue fee. The defendant needs an address for service in England or Wales.
5. Wait for the response. Once the claim is served, the defendant normally has 14 days to pay, admit, or file a defence, or 28 days in total if they file an acknowledgment of service first. If they do nothing, you can ask the court for judgment in default.
6. Free mediation if it is defended. Most defended small money claims are now referred to a free one-hour telephone session with the HMCTS Small Claims Mediation Service before a hearing is listed. See our guide to mandatory mediation.
7. Directions and the small claims track. If it does not settle, both sides complete a directions questionnaire and the court allocates the case. Claims up to £10,000 normally go to the small claims track, where the procedure is simpler and each side usually pays its own legal costs. The court then sets dates for exchanging documents and witness statements, and you pay the hearing fee.
8. The hearing. Small claims hearings are informal and often short. A district judge reads the papers, asks both sides questions and gives a decision, usually the same day. Our guide to what to expect at the hearing covers the day itself.
9. Judgment and enforcement. If you win and they still do not pay, the court has enforcement options such as a warrant of control or an attachment of earnings order. Each has its own fee.

Time limits

Under the Limitation Act 1980 you normally have 6 years to issue a claim for breach of contract, counted from the date of the breach (for an unpaid invoice, usually the date payment fell due), and 6 years for most negligence and nuisance claims from the date the damage happened. A buyer’s claim that a car was faulty can therefore arrive years after the sale, so keep sale files for at least six years. Do not leave it late: gathering evidence and the pre-action period take time.

Where CourtPilot fits

CourtPilot is software for people bringing or defending their own small claim. It is not a law firm, it does not give legal advice and nobody here reviews your case as a lawyer. You decide what to send and you sign it in your own name.

The free case check asks a few questions about your motor trade dispute and tells you whether it looks like a small claim, which pre-action rules apply and when the time limit runs out. For a straightforward claim up to about £1,500 it usually suggests the £29 Claim Pack (letter before claim, particulars of claim and the N1, with the interest and fee worked out). Above that it usually suggests the £49 small claims toolkit, which carries the case through mediation, the hearing bundle and enforcement. £1,500 is the point where we suggest one or the other, not a limit: you can choose either. If you are the one being sued, the £49 defence toolkit covers one defended claim. All are one-off payments with a 14-day refund policy.

Court fees for a money claim

The issue fee depends on the total you claim, including interest. A hearing fee is payable only if the claim is defended and listed for a hearing.

The issue fee runs from £35 for a claim up to £300 to £455 for a claim of £10,000. If the case goes to a hearing there is a second fee, from £27 to £346 on the small claims track. See the full fee table by claim amount or use the court fee calculator for your exact figure.

Fees from the HMCTS fee list (EX50), last checked against gov.uk on 2026-10-19. Fees change, so check gov.uk before you pay. If you are on a low income you may qualify for Help with Fees (form EX160). Court fees you pay are normally added to the claim and can be ordered against the other side if you win.

Worked example: a released car and an unpaid bill

Related guides and tools

• Used car disputes: the buyer’s side of a rejection, useful for preparing a response.
• Vehicle repair disputes: how repair quality and price arguments are judged.
• Insurance claims: where an insurer’s payment falls short.
• Claims against car dealers: what a buyer’s claim looks like.
• How to write a letter before claim: what the Practice Direction on Pre-Action Conduct expects you to include.
• Statutory interest calculator: works out 8% simple interest and the daily rate for the claim form.
• Court fee calculator: the issue and hearing fee for your exact claim amount.