Point of sale issues

The consumer’s issue:

In January 2023, the consumer purchased a used 15-plate hatchback with 82,000 miles on the clock from a dealership under a hire purchase agreement. Within four months, the consumer reported faults with the boot not opening properly, and subsequently experienced other more serious mechanical problems, including engine vibration, a knocking noise, and a diagnosis of flywheel and clutch failure.

The consumer faced difficulty finding a garage willing to carry out repairs under the third-party warranty, which caused delays, but eventually an independent repairer agreed to inspect the vehicle. After partial repairs were authorised in July 2023, the vehicle broke down again within one mile of being collected.

The car was towed back to the garage, and after reporting the problem to the selling dealership, they directed the consumer back to the warranty provider and refused to accept further responsibility. The car remained off the road at the garage for an extended period, and the consumer continued to make finance payments while also being without a working vehicle, despite asking for these to be paused.

As a resolution to their dispute, and deeming the car to be faulty at the point of purchase, the consumer requested a replacement or a functional vehicle, and expressed frustration with the lack of support from the dealership, finance provider, and warranty company.

The case outcome:

The Motor Ombudsman adjudicator reviewed the evidence provided by both parties and, as the faults were reported within the first six months of purchase, the burden, under the Consumer Rights Act 2015, was on the dealership to prove that they were not present at the point of sale.

Given the early and serious nature of the mechanical failures, and the lack of supporting evidence from the business demonstrating that the issues were not pre-existing, particularly relating to the flywheel and clutch, and the breakdown immediately following attempted repairs, it was concluded that the vehicle was not of satisfactory quality at the time of sale.

The adjudicator also considered the level of customer service provided by the business. It was concluded that the dealer failed to support the consumer in arranging repairs, provided delayed responses, and declined to provide call recordings requested to support the consumer’s complaint. While a hire car was offered for over 90 days, the root problem of the faults with the vehicle remained unresolved.

Conclusion: 

Based on the course of events, the complaint was upheld in favour of the consumer, and they were awarded the right to reject the vehicle. A deduction for usage of the vehicle in terms of the mileage covered whilst owning the car, was also made.

Key learning point:

Used vehicles must be sold in a roadworthy condition, even those with higher mileage. Where early and significant faults arise, business must fulfil their legal obligations under the Consumer Rights Act and cannot rely solely on the cover by third-party warranties to resolve issues with a vehicle, such as those which are electrical or mechanical.