Sometimes, despite your best efforts, a dealer simply won't do the right thing. When that happens, Small Claims Court can be a powerful and accessible way to get your money back.
Is Small Claims Court Right for Your Case?
When to Consider It
- The dealer refuses to offer a refund or adequate compensation
- Negotiation and complaints have failed
- You have evidence supporting your claim
- You're prepared to invest some time and a small amount of money
When to Think Twice
- You have no evidence of the fault
- The dealer has a legitimate defence
- The amount is very small (under £300) – it may not be worth the effort
- You can't attend hearings if required
Understanding the Limits
Claim Value Limits
- England & Wales: Up to £10,000 for small claims
- Scotland: Up to £5,000 in the Simple Procedure
- Northern Ireland: Up to £3,000 in small claims
Claims above these amounts go to a higher track with more complexity and costs.
What You Can Claim For
- Refund of the purchase price (full or partial)
- Repair costs you've incurred
- Consequential losses – hire car, recovery charges, etc.
- Court fees (added to your claim)
Step-by-Step: Making Your Claim
Step 1: Send a Letter Before Action
Before filing, you must send a "Letter Before Action" to the dealer. If you need help, see our guide on writing an effective rejection letter. This:
- Sets out your complaint and evidence
- States what you want
- Gives them 14 days to respond
- Warns that you'll take court action if they don't comply
This isn't optional – courts expect you to try to resolve disputes first.
Step 2: Gather Your Evidence
You'll need to prove your case. Collect:
- Purchase documents – Invoice, receipt, finance agreement
- Evidence of the fault – Photos, videos, diagnostic reports
- Expert evidence – Independent inspection report (highly recommended)
- Communication – All emails, letters, texts with the dealer
- Financial losses – Receipts for repairs, hire cars, recovery
Step 3: Issue the Claim Online
In England & Wales, use Money Claims Online (www.moneyclaims.service.gov.uk). You'll need:
- Your details and the defendant's (the dealer)
- A clear statement of your claim
- The amount you're claiming
- Payment of the court fee
Step 4: The Defendant Responds
The dealer has 14-28 days to respond. They can:
- Admit the claim – You win by default
- Defend the claim – The dispute continues
- Make a counterclaim – Rare, but possible
- Ignore it – You can apply for judgment in default
Step 5: Directions Questionnaire
Both parties complete a questionnaire about how they want the case handled. You'll state whether you want:
- A hearing (in person or video)
- Paper-based decision (judge decides on documents alone)
Step 6: Mediation Offer
The court will offer free mediation. This is often worth trying – it's quicker and less stressful than a hearing, and surprisingly effective.
Step 7: Hearing (If Needed)
If mediation fails or either party declines, the case goes to a hearing. Small claims hearings are:
- Informal – No wigs or formal procedures
- Usually 1-2 hours
- In a private room, not a courtroom
- Conducted by a district judge
You can represent yourself – most people do in small claims.
What Happens at the Hearing?
The Format
- Judge introduces themselves and explains the process
- Claimant (you) presents your case
- Defendant (dealer) presents their case
- Judge may ask questions
- Both parties sum up
- Judge gives a decision (sometimes immediately, sometimes later)
Tips for Success
- Be organised – Bring everything in a clear, indexed bundle
- Be concise – Stick to the facts, don't ramble
- Be calm – Don't get emotional or aggressive
- Focus on evidence – What can you prove?
- Know the law – Reference the Consumer Rights Act 2015
How Much Does It Cost?
Court Fees (Current Rates)
- Claims up to £300: £35
- £300.01 to £500: £50
- £500.01 to £1,000: £70
- £1,000.01 to £1,500: £80
- £1,500.01 to £3,000: £115
- £3,000.01 to £5,000: £205
- £5,000.01 to £10,000: £455
Other Costs
- Expert report: £200-£400 (but crucial for proving your case)
- Travel: To court if there's a hearing
- Time: Preparing documents, attending hearings
What About Legal Costs?
In small claims, each party usually pays their own costs regardless of outcome. You can't recover solicitor fees. This makes it accessible – you won't face a huge bill if you lose.
If You Win
The judge can order the dealer to:
- Pay you the claimed amount
- Pay court fees on top
- Do so within a specified time (usually 14-28 days)
If They Don't Pay
You can enforce the judgment through:
- Warrant of execution – Bailiffs seize assets
- Attachment of earnings – Taken from their wages
- Charging order – Against their property
If You Lose
You'll be out the court fees and your own costs (expert report, etc.). You generally won't have to pay the dealer's costs in small claims – so the risk is limited.
You may be able to appeal, but only on limited grounds (legal error, not just disagreement with the decision).
Tips for Maximising Your Chances
Do:
- Get an independent inspection – This is often the deciding factor
- Keep contemporaneous records – Notes made at the time are powerful evidence
- Be reasonable – Courts respond well to reasonable claimants
- Follow procedures – Meet deadlines, complete forms properly
- Prepare thoroughly – Know your case inside out
Don't:
- Exaggerate – It destroys credibility
- Get emotional – Stick to facts
- Ignore correspondence – Courts hate it
- Miss deadlines – Cases can be struck out
- Wing it – Preparation wins cases
Real Example: A Successful Claim
James bought a Mercedes for £12,000. Within 3 weeks, the gearbox failed. The dealer refused to help, claiming it was "wear and tear".
James:
- Sent a Letter Before Action
- Got an independent report (£280) confirming the fault pre-existed
- Filed a claim for £12,000 plus costs
- Dealer defended, claiming the fault developed after sale
At the hearing, the judge preferred the independent expert's evidence. James won the full amount plus his court fee and inspection cost.
Total recovered: £12,735. Total spent: £735 (fee + report). Net gain: £12,000.
The Bottom Line
Small Claims Court is designed to be accessible. You don't need a lawyer, the fees are modest, and the process is relatively straightforward.
The key is preparation – gather strong evidence, know your legal rights, and present your case clearly.
Dealers often settle before the hearing once they see you're serious. Just issuing the claim can break the deadlock.
Not sure if your case is strong enough? Get a free assessment – we'll tell you honestly if court is the right path.
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