Warranty - Refusal to fix faulty exercise bike=cash offer, what are our options?

MrsCheese

My father purchased an exercise bike which has developed a problem 22 months into a 24 month warranty. He expected it to be fixed. 
They sent an engineer out, but there was a part missing, they have now said that they can't get the part and have offered a pro rater payment that is roughly 2/5th of the cost of the bike or a new one. They currently offer the same bike model under the same bike name on their site and it's on other's too. We challenged this and had the following response:

'As of July 2024, Schwinn was acquired by Johnson Health Tech (JHT). While JHT has continued to produce certain Schwinn models—including the 800IC—the bikes currently sold on our website are newer versions manufactured and warranted entirely by JHT. Unfortunately, this means we do not have access to parts from JHT for older models, nor can we offer them as like-for-like replacements. We understand how this can be confusing, especially when the same model name is still in use.

Regrettably, due to Schwinn no longer being in business, we are unable to source parts for your original bike. This has placed us in a difficult position when it comes to fulfilling warranty repairs. We want to be fair and transparent, which is why we offered a partial refund.' 

My question is... what are our options here under the warranty? I've been advised on our options under the consumer rights act. All my father wants is a working bike, it seems unfair that he should have to pay 3/5th of the cost to get a new one, and the ecological situation of scrapping a bike that just needs some bearings seems insane. 

Any advice as to what we can demand or are entitled to would be really appreciated. 

Thanks community!!

Ergates

As a warranty sits over and above your consumer rights it can have whatever (legal) terms and conditions manufacturer wants.

Do you have the T&Cs for the warranty?  If so, does it have a clause for what happens if/when they're not able to source parts ?

In terms of outcome - if the company can't get hold of the necessary parts then that's a dead end, the only argument there is that the amount offered is not enough (i.e. the ecological argument is irrelevant).

You might have better luck with the retailer and/or an independent bike shop who might have different sources of spares or alternative means of repairing it.

TadleyBaggie

Consumer rights are solely with retailer, was it purchased directly from the manufacturer or someone else?

Aylesbury_Duck

What your father is entitled to under the warranty will be covered by the warranty terms.  What do they say?  If they permit the manufacturer to make a partial refund in lieu of a replacement or a repair that they can't fulfil, then they're fulfilling their contractual obligation.

A 40% refund seems pretty mean, given that I'd expect a decent exercise bike to last many years.  Is it decent, or is it a cheap-and-cheerful model?  Is there room for negotiation here, so he gets a new bike at a cheaper rate, e.g. 50% of the RRP, or cheaper?

The other option is to see if an independent cycle shop can source and fit a compatible bearing (or check eBay for one) and take the partial refund.

MrsCheese

Wow, that was quick! THanks for the responses. We're looking to find the Ts&Cs of the warranty, so I don't have the answer to that right now, however to the other suggestions/ statements:

We're dealing with the company that it was purchased from. A well known online Fitness equipment provider - I'm looking to resolve it first and will share the name and outcome once resolved. 

It is a decent bike, it currently retails for £850, so it's not top end with power meter features, but apart from that it's high quality and regularly cited as the best mid level alternative to a peloton. 

After rejecting the first two offers (the second offer was an increase of £20!) they are now saying that there is a possibility of a deal whereby he gets a some money back and a discount on a new bike, so unless there is some great revelation to my question above we'll pursue that with the back up of triggering the consumer rights act to resolve it otherwise. 

I can't imagine that the bearings are unique, so we're also looking at finding somebody who can fix it, if all else fails with these avenues. We'd rather resolve it though and my father just wants to be treated fairly. 

sheramber

The bike manufacturer is no longer in business.It has been taken over by someone else’s . 

It is unlikely the warranty still exists. 

MrsCheese

Do they not purchase the responsibility for the warranty along with the name? They are making the exact same bike. I'm struggling to see how this is fair for the consumer, it seems ludicrous. 
TBH, I think the warranty is with the retailer rather than the company.

the_lunatic_is_in_my_head

MrsCheese said:

They sent an engineer out, but there was a part missing, they have now said that they can't get the part and have offered a pro rater payment that is roughly 2/5th of the cost of the bike or a new one.

Are they offering you a new bike? 

If not CRA says repair or replacement then price reduction or final right to reject.

Reject can include deduction for use, no idea on lifespan, 2/5 refund at 22 months puts lifespan at 4 and half years (if my maths is correct) which seems short for an £850 exercise bike to me. 

Does the bike record actual usage and if so does your father use it much? 

Warranty is a contractual agreement bound by it's terms but without you having a copy yet, it's hard to comment   

born_again

MrsCheese said:

Do they not purchase the responsibility for the warranty along with the name? They are making the exact same bike. I'm struggling to see how this is fair for the consumer, it seems ludicrous. 
TBH, I think the warranty is with the retailer rather than the company.

No.
When a company goes bust, that is the end of a warranty unless it is a insurance based one. Which are pretty rare in consumer marketplace.
Just the name is bought, none of the responsibility for anything pre buying.

Ask Mike Ashley he's built Frasers Group empire on this business model.

MrsCheese

This is all really helpful, thank you. 
They are not offering him a new bike, he'd have been happy to take any offer that meant he had a working bike (fix, replacement or money back so he can buy another one). 

I have a plan now, ask for a final offer to resolve as is or we go down the route of CRA - we're at the right to reject really as they have already covered off repair or replacement, so it'd be down to them trying to say the bike is worth £X and us saying it's worth more. There are two identical condition (my Dad is 80 so he's not hammering this bike like a TdF rider) and model bikes on ebay right now for ~£700 so I understand we'd use that as our evidence to challenge the valuation they have given. 

What have I got wrong in the above? This seems reasonable to me but I'd like to know what I've missed. 

Thanks again to everybody that has helped here!

powerful_Rogue

MrsCheese said:

This is all really helpful, thank you. 
They are not offering him a new bike, he'd have been happy to take any offer that meant he had a working bike (fix, replacement or money back so he can buy another one). 

I have a plan now, ask for a final offer to resolve as is or we go down the route of CRA - we're at the right to reject really as they have already covered off repair or replacement, so it'd be down to them trying to say the bike is worth £X and us saying it's worth more. There are two identical condition (my Dad is 80 so he's not hammering this bike like a TdF rider) and model bikes on ebay right now for ~£700 so I understand we'd use that as our evidence to challenge the valuation they have given. 

What have I got wrong in the above? This seems reasonable to me but I'd like to know what I've missed. 

Thanks again to everybody that has helped here!

Listed at £700 or sold for £700?