Not upheld: satisfactory quality of goods supplied under conditional sale agreement complaint against Santander Consumer (UK) Plc trading as Volvo Car Financial Services (VCFS)

Decision detail

Summary

Mr P purchased a new car under a conditional sale agreement with VCFS in May 2025 for £46,078. Shortly after collection and again in August 2025, he experienced loss of power while overtaking on narrow country lanes at various speeds. A manufacturer-approved garage's diagnostic test found no fault codes, and VCFS's independent inspection in October 2025 could not replicate the loss of power during a 6-mile road test at speeds up to 40mph. Mr P sold the car and settled the agreement, then complained that it was of unsatisfactory quality. The ombudsman found no definitive evidence of a fault and concluded the loss of power could have resulted from other factors, such as the car's safety features or Mr P's driving circumstances. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which implies that goods supplied under a conditional sale agreement must be of satisfactory quality at the point of supply. For a new car, a reasonable person would expect it to be fault-free for a significant period. However, the ombudsman found that no fault had ever been definitively identified or replicated despite multiple testing attempts. The independent inspection road test was conducted at speeds within the range Mr P reported (up to 40mph), and the ombudsman reasoned that if a genuine fault existed, it would likely have presented itself during this test. The ombudsman noted that the loss of power could have resulted from other factors, such as the car's safety features operating as designed or Mr P's driving circumstances (overtaking on narrow lanes). Without concrete evidence of a fault, the ombudsman concluded the car was of satisfactory quality at supply and VCFS acted fairly in refusing rejection.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website