lease car service penalty

[esorted]

Hello. My partner has just handed back a leased car. The inspector has told her that the finance company (Volkswagen Financial Services) will impose a penalty of £400 plus VAT as the one service it has had within the lease period was not carried out by an authorised dealer (Audi).

 

My understanding is that under Motor Industry Block Exemption Regs 2002 as long as the car is serviced using "matching quality" parts then the manufacturers warranty is not affected, and finance companies cannot force servicing to be carried out by authorised dealers at inflated prices. This view was confirmed by Consumer Direct (part of the Office of Fair Trading).

 

However, VWFS have told my partner that lease agreements are exempt from Block Exemption regs, and insist the £400 is due.

 

I don't have a copy of the lease agreement, but will the terms within this take precedence over legislation (i.e. Block Exemption regs)?

 

Thanks for your consideration,

[heliosuk]

However, VWFS have told my partner that lease agreements are exempt from Block Exemption regs, and insist the £400 is due.

 

Right and wrong. Vehicle servicing under the manufactuers warranty is not exempt however the lease agreement might well, as part of the terms and conditions, insist it is carried out at a franchised dealer. If it says that and I'm pretty sure it will insist that it is being an Audi and VWFS then it's game, set and match to them.

 

However I would dispute the value and ask them to supply publicly available values that the difference between a car with a full dealer service history after one/two years old and that with a full history is actually £400.

 

If the T&C's say must be serviced in accordance with the manufactuers specifications then it's game, set and match to you.

[esorted]

Thank you so much - that's excellent advice. Off to get a copy of the lease agreement now.

[heliosuk]

From experience, VW /Audi (VAG) are perhaps the worst offenders with regards interpreting these Block exemption regs and I think they might have been extended as well to include any servicing outside of the warranty period. So they can't argue the toss on goodwill either now. The guy who was advising them on this and knew it inside out, VAG made redundant very convieniently. And he knew his stuff.

 

Watch out for a subsequent claim for inspection of the body work where they try to claim for a scratch or paint chips.

 

Keep us posted and I'll give you some more background on how VAG treat this and the reason why. I would alledge they even do it to their own VW group staff.

[esorted]

Hi heliosuk. Not sure that I'll hear more from VAG in terms of an inspection as the car was collected by British Car Auctions (BCA) to be sold off. Bodywork was signed off by both BCA and VAG as OK.

 

My tactic is to play the waiting game and see what we are invoiced for before introducing the excellent arguments you proposed.

 

Thanks again, and I'll post an update as we progress...