A couple purchased a year-old Audi TT convertible in July last year from an Audi dealership, securing a personal contract purchase (PCP) agreement through Volkswagen Financial Services with an initial deposit of £3,500 and monthly payments of £528.

Initially, the car performed well, but after a year, it began to accumulate rainwater. The couple took it to an Audi service center for inspection, where they learned that the drainage ports in the roof were blocked, preventing proper water drainage.

Audi classified the issue as a maintenance concern rather than a manufacturing defect. However, upon reviewing the owner’s manual, the couple found no guidance regarding the maintenance of these drainage ports, leaving them unaware of the necessary upkeep. The estimated repair cost was around £10,000, which included replacing and rewiring water-damaged electrics. Audi claimed the repairs were not covered under warranty, a decision the couple felt was unjust.

In the following months, the couple engaged in discussions with Audi to resolve the situation while continuing to make their monthly payments, even though they had no access to the vehicle.

In February, after expressing their desire to reject the car, Audi finally agreed to accept the return and cancel the finance agreement. However, this required the direct debit to be canceled before they could sign a new PCP agreement for a different vehicle.

Two months later, they received a notification indicating a default on the agreement due to missed payments in February and March, despite having written confirmation from Audi about canceling the contract. The couple argued that Audi had defaulted by failing to provide a usable vehicle.

Ultimately, they are seeking the cancellation of the PCP agreement and a full refund of their deposit and payments, amounting to £6,668. Mark from Flintshire shared their ordeal.

Expert Insight

The situation they faced after receiving a £10,000 repair estimate shortly after purchasing the vehicle is understandably distressing. Although the car came with a three-year warranty, it proved ineffective when Audi attributed the damages to a maintenance issue instead of a fault with the vehicle. It is reasonable to expect that new owners would not be aware of the need to maintain drainage components without any disclosure.

The issue described seems more indicative of a vehicle fault, and online discussions revealed that problems with drainage tubes are not uncommon in this make and model. The couple had owned the car for more than a month when the issues started, which, under the Consumer Rights Act 2015, gives the retailer an opportunity to repair it. It is disappointing that Audi did not honor this and instead expected them to cover the repair costs.

The subsequent defaults were a result of the couple’s decision to cancel the direct debit themselves, which is generally unwise. It is advisable to await formal notice of contract cancellation to avoid breaching any agreements.

It is evident that returning a financed vehicle is complex, particularly because of the multiple entities involved, including the Audi dealership and Volkswagen Financial Services, which owns the car until the loan is settled. For the loan to be cleared, the dealership must coordinate to pay off the debt and manage the repair costs necessary for resale.

According to Stuart Masson from The Car Expert, car finance operates similarly to a secured mortgage, complicating the cancellation process. Dealers typically strive for expeditious sales, but it appears Audi’s procedures failed to streamline the resolution for this couple.

Following a request for an investigation from Audi, it took three weeks to address the couple’s payment letters. By July, they still were receiving correspondence from the DVLA regarding tax obligations as they remained the car’s registered keepers.

Audi later notified that the car was still undergoing repairs and had not yet been returned. After several complications were reported, the couple finally saw some progress in August when ownership was transferred back to the dealer and their loan was settled. However, communication issues persisted, leaving them without updates on their refund.

Ultimately, in October, after persistent advocacy from The Troubleshooter, Volkswagen Financial Services issued a refund covering the deposit, six PCM payments, and an additional goodwill gesture that totaled around £7,000.

Audi UK issued an apology for the prolonged process, explaining that customer satisfaction is a top priority, and they reaffirmed their commitment to resolving the matter despite the complexities involved.

The couple expressed their relief and gratitude for the resolution of the situation.

£1,470,000: the amount saved for readers so far this year.