The consumer’s issue:
“In April 2021, I put down a deposit for a brand-new hatchback. I had also opted for a standard satellite navigation package, which was advertised as coming with a digital dashboard, and the retailer confirmed this to be the case. However, a week after paying my deposit, the manufacturer informed the dealership that only vehicles with the enhanced satellite navigation package would be eligible to receive the digital dashboard.
The added cost to me was therefore quoted at £2,400 for these two elements, but I was also required to have an additional pack at £900 to be able to have the enhanced satellite navigation system. I spoke to the manufacturer’s UK CEO to complain that the parameters had changed since I ordered the car, and that I would be left out of pocket because of this. As a goodwill gesture, they offered a servicing credit note, but this was not acceptable as I would still incur a financial loss for equipment I didn’t need or want.
As a resolution, I am looking for the car to be sold to me at its original advertised price before the specification changed.”
The accredited business’ response:
- The consumer’s complaint is aimed at the manufacturer rather than us. The issue is caused by the manufacturer not being able to produce the car to the consumer’s specifications due to parts shortages currently affecting carmakers.
- We did request the manufacturer provide credit to be used as a discount against the car purchase, but they refused. Efforts were also made to provide the customer with alternative vehicles.
- However, as this did not meet their requirements, the consumer chose to cancel their order and request a full refund of their deposit, which we have duly honoured.
The adjudication outcome:
- The Motor Ombudsman adjudicator noted that the dealership suggested that the consumer’s complaint should be raised with the manufacturer, but as they had no contractual relationship with the manufacturer, the adjudicator stated that any complaints needed to be directed to the seller of the vehicle.
- The inclusion of the digital dashboard in the specification was reconfirmed by the dealership the day after the vehicle order contract was formed, in which the consumer was told: “yes don’t worry you’ve definitely got the digital dashboard”.
- It was therefore clear that all representations of vehicle, either by the business, by the advertisement, or by the contractual agreement, showed that the vehicle was equipped with a digital dashboard.
- The explanation provided by the manufacturer for this feature being omitted was the result of the worldwide semiconductor chip shortage, meaning the solution was to only provide the digital dashboard in higher specification packages.
- The adjudicator had no qualms about this explanation, but the change to the packages should have only applied to new vehicles after it had been made.
- Therefore, any purchases prior to this point should have still been honoured and, as the consumer had paid the deposit for the vehicle and confirmed their order, they should have been able to reasonably expect the promised features at no additional cost.
- The adjudicator had acknowledged the business’s attempt to provide credit or alternative cars, but ultimately, they were unable to provide a vehicle with the same specification and features as the consumer had paid for. Therefore, the complaint was upheld on this point.
- The business had refunded all the money the consumer had contributed towards the purchase of this vehicle, effectively dissolving the sales contract. As such, the adjudicator did not issue any further award, as the business had already performed the action the adjudicator would have recommended.
Conclusion
- Both parties accepted the adjudication outcome, and no further action was required.
