The consumer’s issue:
“I visited a dealership to buy a brand-new supermini. When I was discussing the vehicle that I was interested in buying, I was told that it had 110 horsepower (hp). However, the sales documentation explained that this car only had 83 hp. When I informed them that I wanted to buy the more powerful version, the retailer said that I would have to wait, as this model was not currently available. They then told me that the part-exchange value for my existing car, which had already been agreed, would be reduced if I delayed the purchase, and that I could not use a £250 promotional discount voucher from the manufacturer, which clearly stated that it could be used in conjunction with any other discount.
Due to being provided with misleading information, and receiving a poor level of customer service from the business, I am looking for the £250 discount, as offered by the manufacturer, to be honoured as a goodwill gesture.”
The accredited business’ response:
- The customer explained that they wished to purchase the exact car seen in our showroom, and therefore arranged a test drive of the 83 hp model. However, following this, the 110 hp specification was loaded on to the order form in error.
- It was not until the consumer was arranging their vehicle insurance that this variation was spotted.
- The customer felt as if they had been misled, even though it was an honest mistake on our part, and despite being happy post-test drive with the 83 hp model, they still wished to proceed with ordering the 110 hp variant.
- As a result, we advised the consumer that the part-exchange value of their current car would have to be recalculated, due to the more powerful model being made available by the factory three months’ later.
- The customer also provided a £250 discount voucher from the manufacturer, but we explained this could not be used on top of the £3,800 reduction off the recommended retail price that we were giving them as a business.
- As a result, the customer cancelled the order that day, but got back in touch with our salesperson to reinstate their purchase of the 110 hp version with the later delivery date.
- In recognition of what had happened, we honoured the original part-exchange price as a goodwill gesture, to which the customer agreed.
- Beyond this, we do not believe that the consumer is entitled to any other award in the circumstances, including the application of the £250 discount from the manufacturer.
The adjudication outcome:
- The Motor Ombudsman adjudicator explained that the consumer had the burden of proving that they had purposely been misled.
- The adjudicator remarked that, once the error in terms of the model variant had been identified, the business acknowledged what had happened and took the necessary action to rectify it.
- Therefore, the adjudicator concluded that the retailer could not be held accountable for what was a genuine mistake, plus the correct model was eventually re-ordered for the customer.
- With regards to not honouring the manufacturer’s promotional discount of £250, the adjudicator explained that they had not been provided with a copy of the advertisement, voucher or the terms and conditions. Therefore, she could not agree that the evidence submitted supported the fact that the business had been in breach of the terms, meaning the award could not be applied.
- Based on the facts of the case, the adjudicator could not uphold the consumer’s complaint on either of these points.
The response to the adjudication outcome:
- The business agreed with the adjudication outcome, but the consumer rejected it on the basis that not all the evidence presented about the promotional discount voucher was taken into account. They therefore asked for a final decision from an ombudsman.
The ombudsman’s final decision:
- The ombudsman noted the terms of the offer stated the £250 discount was available in conjunction with any other offer, and was applicable against the retail price, not the list price. The only caveats to the offer were that it was used for a personal vehicle, on a single purchase, and not in conjunction without any other voucher.
- The ombudsman therefore found the consumer’s purchase met the terms of the offer, and there was no good reason the voucher should not be applied. Indeed, the ombudsman found the offer was rejected incorrectly by the business.
- In light of the evidence presented, the ombudsman awarded a £250 price reduction of the vehicle to place the consumer back in the position they would have been, had it been correctly applied.
- The ombudsman went on to consider whether the consumer was misled in relation to the error made about the horsepower on the order form.
- The ombudsman accepted there was a mistake made, but this was corrected before any decision about the sale was made by the consumer, therefore determining that they had not been misinformed.
- As a fair resolution to the consumer’s complaint, the ombudsman partially upheld the consumer’s complaint, and awarded the £250 discount by the business.
Conclusion:
- Both parties accepted the final decision. The consumer was provided with the reduction, and the case was closed.