Can I reject this used car?

I bought a car from a dealer for £20,000 which was 100% financed via Hire Purchase through a finance broker.

I picked the car up from London and drove it home, some 400 miles. When I got home I noticed the car was showing signs of engine failure (smoke from exhaust, loss of oil and tapping noises). I notified the dealer the very next day and arranged to have the car inspected by the local main dealer. It was booked in for one week later which was the quickest they could inspect it. Videos and photos of the failure signs were sent to the dealer I purchased the car from.

The car has since been diagnosed with engine failure by the main dealer who have said the fault has been there for some time. Photos of the damage inside the engine have been provided as proof. I have since paid for the car to be collected on a transporter and returned to the originating dealer in London.

My question is - can I reject the car under the Sales of Goods Act, as it was of unsatisfactory quality and defective when I bought it? I have already officially rejected the car via an email to the Finance company and the dealer however I am yet to receive a response. I believe the dealer only has a chance to fix the car should the fault develop after the sale, however this has clearly had the fault when it was sold to me and therefore I am led to believe the contract is void.

Asked on 15 October 2012 by Lewis

Answered by Honest John
Yes, you can reject the car under Clegg v Olle Anderson 2003. See:
Dear Honest John,

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