Lease Car Cannot be Repaired

scaredofdebt

I have an MG5 which I have on a 4 year lease, it's currently 25 months old and the dealer has had the car for just over a month now and they haven't been able to repair it.

The problem is the car won't charge (EV) and initially I had to wait a week before MG decided it was under warranty and they would therefore repair it free of charge.

The charging module was replaced (usual cost to replace this is £2k) but that didn't resolve the fault.  The dealer has tried numerous software updates to no avail and MG is now out of ideas.

So, how do I reject the car and is this even an option?  Am I expected to continue paying for a faulty car that can't be repair and I cannot drive?  The lease company says I can return the vehicle, presumably on the back of a lorry but I would have to pay 40% of the remaining payments, around £2,500

Thanks for any advice.

Mildly_Miffed

Is the lease with MG finance or a third party?

It sounds as if the financier are basing that return on simple opting-out rather than there being a showstopper with the vehicle itself.

There have been other threads here about the technical support from various budget Chinese brands, including MG, as being sadly lacking once the dealer themselves run out of knowledge.

scaredofdebt

The lease is with a third party.  The dealer has been in regular contact with MG so in this case it looks like the manufacturer themselves have run out of ideas.

I'd have thought under contract law that the vehicle I am leasing has to be able to fulfill the role of a vehicle, ie actually be mobile or the supplier is in breach of contract but I am not a lawyer - the car is faulty through no fault of my own, ie I've not crashed it or been negligent, car has been serviced according to the manufacturers schedule etc.

Anyway, I will seek legal advice if it's not fixed fairly soon.

Nobbie1967

IANAL, but has the contract been frustrated? The car the lease company supplied cannot be repaired so the contract should be terminated with no further payments. The lease company then arranges a settlement with MG.

Contract frustration is when an unforeseen event makes it impossible or illegal to perform a contract. This can happen after a contract is formed, but before it's completed. 

Examples of contract frustration: Natural disasters, Government regulations, Economic instability, Supply chain disruptions, and Technological failures. 

How does frustration work? 

• Frustration terminates the contract, not just part of it.
• After frustration, neither party can demand further performance from the other.
• The frustrated party can rescind the contract without penalty.

Requirements for frustration 

• The event must be unforeseen and uncontrollable
• The event must significantly alter the contractual duties
• The event must not be the fault of either party
• The event must not have been foreseen or provided for in the contract

scaredofdebt

Thanks, yes this is what I think but as you say IANAL.

Funnily enough my daughter is a Lawyer but she doesn't specialise in contract law!

I'm going to give the dealer a few more days before seeking legal advise, I just spoke to them and they have found a fault code and they are pursuing that at the moment.

Mildly_Miffed

scaredofdebt said:

The lease is with a third party.  The dealer has been in regular contact with MG so in this case it looks like the manufacturer themselves have run out of ideas.

Well, the UK importer... MG Motor UK Ltd

That may or may not be a very different thing to the actual manufacturer - Shanghai Automotive Industry Corporation, SAIC - since it seems as if technical information and support between China and here is lacking.

I'd have thought under contract law that the vehicle I am leasing has to be able to fulfill the role of a vehicle, ie actually be mobile or the supplier is in breach of contract but I am not a lawyer - the car is faulty through no fault of my own, ie I've not crashed it or been negligent, car has been serviced according to the manufacturers schedule etc.

The fun starts because your contract is with the financier, but the technical issues are with the dealer - so your consumer rights rest with a different company to the one that's dealing with the car itself.

Are they talking to each other? You need to make sure they are.

born_again

Did you pay a deposit on a CC, so you can start a S75 claim?

Who is the lease with?

scaredofdebt

The lease company is aware of the situation and has been pressing them for a courtesy/hire car but as yet I don't even have that.

The dealer says they have been in contact with MG in China, so I presume they mean SAIC.  It took them 5 days to agree to repair the car under warranty in the first place, not sure why such a decision takes a week but there you go.

I think the dealer has fitted the charging module incorrectly but that's just a hunch, as I say I am giving them a couple more days.

We do have another car but it's a pain as we live in a rural location and even the school run is 15 miles round trip, the old Kia Rio is getting on a bit but at least it's working!

scaredofdebt

born_again said:

Did you pay a deposit on a CC, so you can start a S75 claim?

Who is the lease with?

Sadly no deposit, just started paying the monthly payments all on DD - it's Zen Auto.

Ectophile

Raise a FORMAL complaint with the lease company.  If you are paying for a car, you should expect to get one.  They need to provide you with something that works.

Okell

I'm not convinced that this is an example of contract frustration(?).

Surely the OP has entered into a contract with the lease company whereby he provides them with monthly payments and they provide him with a working car.

If the car becomes irreparable through no fault of the OP I'd have thought that the lease company would have to provide a suitable replacement, otherwise the lease company is in breach of the contract.  (I say that but obviously haven't read the lease T&Cs so I don't know what they say about this sort of situation - but I suggest the OP does as a matter of urgency.  The OP needs to make it clear that he isn't doing any kind of voluntary termination - the car can't be repaired so the lease company need to sort it out and provide a replacement)

@scaredofdebt -  do you have free legal advice cover on your home insurance?  If so, ask them.  Otherwise I'd suggest you try asking CAB

IANAL so the above is my opinion not legal advice