Partially upheld: goods supplied of unsatisfactory quality; lack of durability complaint against Santander Consumer (UK) Plc trading as MG Motor Financial Services (MGMFS)

Decision detail

Summary

Mr P purchased a brand-new car via conditional sale agreement with MGMFS in December 2024 and reported multiple issues in January 2025 including abnormal engine revving, reduced range, and dashboard warnings. A February 2025 repair found no faults. In July 2025, an engine fault warning appeared and the EGR valve was replaced in August 2025, with the fault initially reoccurring. The ombudsman found that while the range and warning message issues were not faults, the EGR valve failure demonstrated the car lacked durability expected of a brand-new vehicle, breaching the Consumer Rights Act 2015. Although the repair was completed at no cost, the ombudsman upheld the complaint and ordered MGMFS to reimburse Mr P's £256 in transport costs plus interest and £150 for distress and inconvenience.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which requires goods supplied under consumer credit contracts to be of satisfactory quality. For a brand-new car, a reasonable person would expect excellent condition and trouble-free motoring for a significant period. While the ombudsman found no fault with the range issues, warning messages, or abnormal engine revving (the latter being a documented characteristic of the hybrid engine), the EGR valve fault that emerged in July 2025 and required replacement in August 2025 demonstrated the car lacked durability. This failure to be durable meant the car was not of satisfactory quality when supplied. Although the repair was completed at no cost to Mr P, he incurred transport costs for two uplifts, which should be reimbursed. The ombudsman also awarded £150 for distress and inconvenience caused by the complaint and lack of access to the vehicle during repairs.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website