Not upheld: vehicle damage charges on hire purchase return complaint against Volkswagen Financial Services (UK) Limited trading as Audi Financial Services

Decision detail

Summary

Miss B complained about charges imposed by VWFS when she returned a financed used car in October 2025. VWFS charged £132 for rear bumper damage and £288 for wheel damage, claiming it was beyond fair wear and tear. The ombudsman assessed the damage against BVRLA guidelines but adjusted the standard to account for the car's age (four years) and mileage (30,000 miles) at supply. Finding that the rear bumper had six paint chips and a 100mm scratch, and all wheels had scuffs well exceeding acceptable limits, the ombudsman concluded the charges were reasonable and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman applied the BVRLA guidance for fair wear and tear but adjusted the standard to account for the car's age and mileage at supply. The rear bumper damage (six chips exceeding the four-chip maximum and a 100mm scratch) and wheel damage (scuffs well exceeding the 50mm acceptable limit on all four wheels) were found to exceed fair wear and tear even when assessed proportionately for a four-year-old vehicle with 30,000 miles. The charges were therefore reasonable compensation for damage beyond fair wear and tear as permitted by the finance agreement.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website