The consumer’s issue:

The consumer purchased a brand-new electric hatchback from a local dealership, and was told when buying the car, they would be able to charge it for free at the business’s premises for free throughout the three-year contract for the vehicle.

Living nearby, the consumer proceeded to charge one to two times a week at the dealership, but after 18 months, this facility was removed without any explanation or warning. When the consumer raised this with the business, the branch manager who accepted what had been offered at the time of sale, explained that the decision had been taken due to rising energy costs, and said that no formal agreement had ever been made about this service.

Unhappy with this, the consumer raised a complaint with both the dealership and The Motor Ombudsman to get the issue resolved. They explained that the provision of free charging was an incentive to buy the car, and was seeking compensation to the amount of £1,500 in light of what had happened.

The case outcome:

The Motor Ombudsman reviewed the evidence provided by both parties, and noted that the provision of free charging for the duration on the contract formed part of the purchase agreement.

While the adjudicator acknowledged the rationale behind withdrawing such a facility, the dealership had made an agreement with the consumer as part of their purchase.

On this basis, the adjudicator upheld the complaint and stated that the business should either allow the consumer to continue charging for the remainder of the agreed period, or provide a price reduction for the purchase of their vehicle. The value of lost charging was calculated at an average of £1,300 for the 18 months that it had been withdrawn.

The consumer accepted the decision, but the business challenged it on the basis that no formal agreement existed between the two parties, and requested an ombudsman’s final decision.

Upon the review of the case, and with additional information provided by the consumer, the ombudsman noted that the contractual term for the vehicle was four years, not three as previously stated.

Conclusion:

The ombudsman agreed with the findings of the adjudicator, and recommended an award of the equivalent of £2,400 as a price reduction, based on the consumer not being able to use the charging facility for two and a half years of the pre-agreed period.

Key learning points:

As a consumer, it is important to make a note or document in writing any promises made at the point of sale, which form an important part of your decision to make a purchase so that these could be relied upon later if ever needed.

For a business, it is important to be clear about any promises made at the point of sale and when they would cease to apply to the consumer.