What success can look like

The Ombudsman’s decision in Mrs H’s case against Volkswagen Financial Services (UK) Limited trading as Audi Financial Services (DRN-5051634) shows how remedies can be targeted when a major repair succeeds.

Mrs H acquired a brand-new car on 25 February 2021 for £40,765. Within two weeks she reported recurring oil warnings; over time the dealer investigated and in June 2023, at around 22,590 miles, the engine was replaced under warranty. Courtesy cars were provided on each workshop visit, bar two days. Volkswagen later offered £750 for distress and inconvenience. The Ombudsman upheld the complaint but, because the single repair was successful and the car then operated properly, rejection wasn’t directed. Instead, an additional £300 was awarded to fairly recognise the inconvenience and extra oil costs.

Key outcomes

• Complaint upheld; repair successful so no rejection directed.

• Compensation: £300 in addition to the £750 goodwill already offered.

• Interest: No 8% statutory interest awarded.

• Courtesy car: provided on each visit except two days.

• Credit file: no changes directed.

Targeted remedies like this are common where a single repair succeeds: outcomes focus on proportionate compensation rather than unwinding finance.

Introduction: When Is Rejection the Right Option?

Many VW owners enjoy years of reliable motoring, but some face repeated faults soon after purchase. If you're dealing with persistent problems, you may be considering whether you can reject the car. This guide explains your rights and the steps to take.

Step 1: Know Your Rights – Consumer Rights Act 2015 and Warranty

Under the Consumer Rights Act 2015, goods must be of satisfactory quality, fit for purpose, and as described.

• Within 30 days: the short-term right to reject and receive a full refund.

• After 30 days: the right to a repair or replacement; if unsuccessful or faults recur, the right to a final remedy (price reduction or rejection).

Manufacturer warranty typically runs alongside your statutory rights (terms vary by model and year). Warranty exclusions commonly include wear and tear, neglect, unauthorised modifications, and consequential loss.

Step 2: Identify and Document Faults

Common categories:

• Electrical/software (warnings, infotainment glitches, battery/charging issues)

• Mechanical (engine/gearbox/drivetrain, cooling, suspension, emissions/AdBlue where applicable)

• Body/interior (water ingress, rattles, fit/finish)

Brand-specific examples from FOS decisions:

• Recurring oil pressure warnings leading to engine replacement under warranty (DRN-5051634).

• Increased oil consumption and repeated workshop visits causing inconvenience (DRN-5051634).

Action: keep a dated log, photos/videos, diagnostic/repair reports, and all correspondence with the retailer and finance company.

Step 3: Communicate Clearly – Template Letter

Subject: Request for Vehicle Rejection/Replacement – [Your Vehicle Model, Registration Number]

Dear [Dealer Principal's Name],

I am writing regarding my [VW Model], purchased from [Retailer Name] on [Date]. Since delivery, I have experienced repeated faults including [list main issues, e.g. electrical failures, drivetrain faults, water ingress]. These have not been resolved despite multiple repair attempts.

Under the Consumer Rights Act 2015, I am entitled to a vehicle that is of satisfactory quality, fit for purpose, and as described. As the faults are persistent and have not been rectified, I am requesting [a replacement vehicle/a full refund]. Please confirm the process for returning my vehicle and arranging [a replacement/refund].

I have attached a log of faults, photos, and copies of correspondence. I look forward to your response within 14 days.

Yours sincerely,
[Your Name]
[Contact Details]

Step 4: Dealer, Manufacturer, and Finance Company – Who to Contact

• If bought on PCP/HP, the finance company is often the legal owner; involve them early.

• Your contract is with the retailer; keep them in the loop and escalate if needed.

• If ignored, escalate to the manufacturer’s customer relations.

Step 5: What to Expect – Refunds, Replacements, and Mileage Deductions

• Within 30 days: generally a full refund when rejection is valid.

• After 30 days: repair/replacement or partial refund (businesses may deduct for fair use/mileage; negotiable where faults are severe or the car was unusable).

• Where decisions unwind finance agreements, typical remedies include refunding sums paid and applying 8% simple interest on refunds (per FOS discretion).

Step 6: Overcoming Obstacles

If progress stalls, escalate in writing, reference evidence and your statutory rights, and set clear timelines. Persistence matters.

Step 7: Negotiation Tips

• Use your fault log and evidence to demonstrate inconvenience and repeat failures.

• Ask for mileage deductions to be waived if the car was unusable.

• If a replacement is offered, scrutinise the finance terms.

Major VW Retailers (UK)

• Marshall Volkswagen

• Inchcape Volkswagen

• Lookers Volkswagen

• Vertu Volkswagen (Bristol Street Motors)

• Citygate Volkswagen

• Johnsons Volkswagen

• Vindis Volkswagen

Common VW Models (UK)

• Golf

• Polo

• Passat

• Tiguan

• T-Roc

• T-Cross

• ID.3

• ID.4

Conclusion: Stay Persistent and Informed

You don't have to accept a car that isn't right. With clear evidence and knowledge of your rights, you can achieve a fair outcome. Keep thorough records and escalate in writing.

Disclaimer: This article provides general information for educational purposes only. It is not legal advice. Outcomes can vary based on your personal circumstances.