Not upheld: unsatisfactory quality of goods supplied under hire purchase agreement complaint against Volkswagen Financial Services (UK) Limited trading as Audi Financial Services

Decision detail

Summary

Mr R purchased a five-year-old car with 20,000 miles under a hire purchase agreement with VWFS in October 2024 for £19,300. Shortly after purchase, he experienced multiple faults including gearbox warnings, air conditioning failure, and coil pack issues. VWFS repaired the identified faults and offered £573.00 compensation. Mr R complained that this was insufficient given the car was of unsatisfactory quality. The ombudsman found the car was likely of unsatisfactory quality at supply due to certain faults, but VWFS had appropriately exercised its single chance to repair under consumer law, and the compensation already paid was fair and reasonable, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which implies that goods supplied under hire purchase must be of satisfactory quality at point of supply. For a five-year-old car with 20,000 miles at a lower price point, a reasonable person would expect some wear and tear and earlier maintenance needs. While certain faults (coil pack and 'Shift to P' warning) were likely present or developing at supply, the ombudsman found VWFS exercised its single chance to repair appropriately and successfully. The suspension issue could not be replicated and the vehicle passed MOT with no advisories, making it unlikely shock absorbers were defective at supply. The compensation of £573.00 already paid was deemed fair and consistent with what would ordinarily be recommended.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website