Recently-purchased used vehicle destroyed by fire - where do I stand?

I purchased a used car from a reputable local dealership. One month later I noticed a loss of power and a harsh grinding sound immediately prior to pulling over. I opened the bonnet and noticed that the bottom of the engine was on fire. Within seconds the whole vehicle was consumed and destroyed. I contacted the dealer the next day, who said that it wasn't his problem as the cause cannot be identified, that no warranty would cover the cost of a refund or replacement and that I should claim via my insurance. Where do I stand?

Asked on 24 November 2012 by NB, via email

Answered by Honest John
If a dealer sold a faulty car that was either faulty at the time of the sale or was developing a fault at the time of sale, then the Supreme Court ruling in Clegg v Olle Anderson (2003) applies and the dealer either has to take the car back and refund the money, or pay for the repair. If he refuses, take him to the small claims track of the County Court to reclaim the cost of the repair. The law is here: www.honestjohn.co.uk/faq/consumer-rights/
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