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

Decision detail

Summary

Mr M purchased a used car via hire purchase agreement with VWFS in October 2024. Shortly after acquisition, he experienced a knocking noise traced to faulty front driveshafts, which were repaired under warranty in November 2024 at no cost. Although Mr M reported the knocking noise persisted, a December 2024 diagnostic could not replicate the issue. In February 2025, warning lights appeared suggesting a timing belt failure, and the car was left unused at a repair garage. The ombudsman found the driveshaft fault was present at point of supply and had been properly remedied through warranty repairs, but the timing belt failure occurred five to six months after supply and was attributable to normal wear and tear rather than a fault at point of supply. Accordingly, the complaint was not upheld.

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 used car under five years old with 54,000 miles costing £17,000, a reasonable person would not expect it to be in the same condition as a new car. The driveshaft fault was found to be present or developing at point of supply because it manifested shortly after acquisition and required repair within a month. However, the timing belt failure occurred five to six months after supply, after a further 2,500 miles, suggesting it was not present at point of supply but rather a component subject to normal wear and tear. The timing belt failure occurred within approximately 6,000 miles of its recommended replacement interval and is a serviceable, replaceable part. The battery degradation was attributed to wear and tear and the car being left unused for several months rather than a fault at point of supply. The driveshaft repairs were completed under warranty at no cost, and a subsequent diagnostic could not replicate the knocking noise, suggesting the repairs were effective.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website