Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - firebits

I'm looking for advise on how the Consumers Rights Act may help me and many others who currently have had the delivery of their new cars blocked by Skoda UK.

I ordered a new Skoda Superb 1.4TSI DSG SE-L from a broker, new-car-discount.com, on the 29th of February. I ticked many options, paid the deposit and the order was accepted and processed via NCD's Skoda dealer, whom they are acting as an agent for. I received notification that the car had arrived in the UK on 9th of May and delivery to me was organised to take place on the 6th of June. I received an invoice on the 25th of May which included Chassis and Registration numbers of the vehicle. I then however received an email as below on the 27th of May:

Really bad news I’m afraid. With immediate effect our discount terms have been stopped from Skoda, the dealer who was supplying us shouldn’t have been supplying us and Skoda have got wind of it and pulled the plug meaning we are no longer able to supply the car.

I’m really sorry about this and know it will be very frustrating, especially after the long wait – for us as well as we have taken numerous orders.

We are in negotiation with another dealer to get more discount terms which could take a couple of weeks but whether or not we can negotiate the same level of discount I’m not sure..

I have asked accounts to refund your deposit in full and again please accept my apologies.

I contacted Skoda UK Customer services who inform me that the cars had been placed on hold whilst they investigate what has been taking place. Apparently the dealer was supplying the cars via their fleet sales and not retail meaning far greater discounts. Today Skoda are still deciding whether they are going to honor the deals or not. Many have been affected, and like me, left without a car. However, I have also contacted the supplying dealers fleet sales department who are still quite happy to sell me the car, but at nearly £4000 more than the original price agreed.

Skoda have agreed that I am their customer. They accepted the order, built the car and shipped it to the dealer in the UK. So my question is are they legally obligated to complete the sale at the agreed price and does the Consumer Rights Act provide me with any protection on this?

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - RobJP

This would be under Contract Law - which is a mishmash of various acts and Common Law. The CRA would only entitle you to get your deposit back in full if the sale was delayed by over 30 days.

So that would be the dealer's ideal ploy - sorry, delay on the car by a month, repeat that every month until you ask for your money back and walk away. You cannot legally get more than that.

You are not Skoda UK's customer.

You are either the dealer's customer OR the broker's customer.

If the dealer was obtaining cars under false pretences from their supplier (fleet discount as opposed to individual sales), then their contract with SKODA GB will determine whether or not the sale will proceed.

Even if you've signed a contract, then it probably would not be enforcable in law - as the sales person at the dealership, by their actions, did not have authority to conduct that sale (fleet discount on individual sale), then it's entirely possible that the contract is not legally valid.

So you are left with :

1. Get deposit back

2. Pay the higher price

3. Sit tight for a few days, and see what can be arranged - the dealership now has a few cars that they'd obviously like to get sold, and SKODA may put additional pressure on them to take a bit of a hit, and complete the sales, to keep the customers happy.

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - RT

Good advice above.

It may not be as clear as portrayed by the broker - most, if not all, the online discount brokers use similar methods to access fleet sales rather than retail sales and take advantage of the much higher discounts available so it seems strange that Skoda UK are blocking one dealer, rather than all of them.

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - concrete

I always thought that the online brokers who sell and lease cars were availed of fleet discounts on account of their volume of business over a 12 month period. If NCD buy for instance, 50 Skodas a year then I would think that volume would qualify as a fleet buyer. Maybe it doesn't work like that at all but it is hard to think of a better way to get discounts than through volumes. I would certainly try and cajole Skoda UK into doing the right thing. After all, you are not personally involved in the contract details other than making a purchase. Lay it on thick about really wanting a Skoda because they are so good etc etc (btw they really are good too). Good luck.

Concrete

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - firebits

What appears to be going on is that Skoda and the supplying dealer have been in discussions for 3 weeks now. The dealer refers to Skoda being in discussions with the "rights holder", and Skoda say they are in discussions with the dealer. I think that Skoda UK are trying to get the dealer to honor the supply of the cars to us, but not at fleet discounts, hence the ongoing negotiations. We were supposed to have a resolution to this on Monday, Tuesday at the latest. Then it was Wednesday and now they will update us on Friday.

I let my lease car go at the end of its term which was a fortnight before the agreed delivery date of the Superb. I've now been without a car for 4 weeks, it's becoming increasingly difficult.

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - RobJP

In which case, all you can realistically do is inform the dealership (and copy SKODA GB in on it too) that you require a final answer within the next few days, or you will be forced to look elsewhere.

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - firebits

I can do that however there are many others affected by this that are prepared to wait for a resolution. I will buy someting else and a week later everyone will get the Superb's, this is typically how things go.

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - Cris_on_the_gas

It's contract law.

You agreed with new car discount the price and paid a consideration thus you had a contract.

They have now broken the contract.

You can hunt around for the best deal and if price you pay is higher then they have to give you "damages" for breach of contract for the difference in selling price.

If they don't play ball, you must give them a chance to do so then you need to litigate thrugh the small claims court

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - Brit_in_Germany

I would say the contract has been frustrated rather than broken.

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - Bromptonaut

I would say the contract has been frustrated rather than broken.

A very valid point.

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - focussed

I would say the contract has been frustrated rather than broken.

A very valid point.

But bear in mind:- A contract will not be frustrated where:- 1 It is more difficult or expensive to perform. 2 Impossibility of performance is the fault of either of the parties. 3 Where there is a force majeure clause. 4 Where the frustrating event could be foreseen.
Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - firebits

I have received a statement from Skoda on this as below:

We understand you may recently have received a communication suggesting that ŠKODA UK has cancelled certain customer orders because of discounting. We wish to clarify the position and reassure you that ŠKODA UK has not cancelled any customer orders
(either for this reason or at all).

We are, however, currently investigating the legal status of certain third parties which have been involved with ordering ŠKODA vehicles. The purpose of the investigation is to ensure ŠKODA UK complies with its legal obligations. Whilst this may have affected trade with such companies, we hope to find a way to be able to process all properly placed orders as soon as our investigations conclude.

You are free to use an intermediary to negotiate/conclude a purchase on your behalf and/or arrange finance (in either case purchasing through one of our network of approved ŠKODA retailers) and our investigation is not aimed at preventing any such lawful activity

We have not been informed of any customer details and therefore we have been unable to be pro-active in contacting any customers. If you have placed an order you think may have been affected by this issue, and wish to obtain further information, you may contact us on 033 300 37504.

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - Brit_in_Germany

That has the smell of legal bull. Perhaps there is an allegation of anti-competitive price fixing floating around and they are trying to cover themselves.

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - RT

Most car brands have two price structures with different discounts - one for retail sales and one for fleet sales. The car brand is free to determine exactly what constitutes a fleet sale especially for "fleets" of 1 - which may be extended to professionals and sole traders.

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - focussed

This paragraph looks like their get-out-of-jail card to me.

"You are free to use an intermediary to negotiate/conclude a purchase on your behalf and/or arrange finance (in either case purchasing through one of our network of approved ŠKODA retailers) and our investigation is not aimed at preventing any such lawful activity"

Somebody's solicitor is on the case and has warned them off, is my take on it.

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - RT

This paragraph looks like their get-out-of-jail card to me.

"You are free to use an intermediary to negotiate/conclude a purchase on your behalf and/or arrange finance (in either case purchasing through one of our network of approved ŠKODA retailers) and our investigation is not aimed at preventing any such lawful activity"

Somebody's solicitor is on the case and has warned them off, is my take on it.

Skoda dealers focussing on retail sales complaining to Skoda UK about other dealers giving fleet discounts to retail customers - is my take.

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - concrete

This paragraph looks like their get-out-of-jail card to me.

"You are free to use an intermediary to negotiate/conclude a purchase on your behalf and/or arrange finance (in either case purchasing through one of our network of approved ŠKODA retailers) and our investigation is not aimed at preventing any such lawful activity"

Somebody's solicitor is on the case and has warned them off, is my take on it.

Skoda dealers focussing on retail sales complaining to Skoda UK about other dealers giving fleet discounts to retail customers - is my take.

But the OP has used an agent to obtain a discount. I would have thought that an agent who buys a lot of cars per annum would qualify for a fleet discount anyway, albeit througha main dealer. I bet 'drivethedeal' and similar agents quailify. Otherwise how do they offer such large discounts? It seems as if there is a 'rabbit off' here either with the dealer or the agent or both and Skoda are smelling a rat. You may never get to the bottom of this one. If I were you I would try a different agent and negotiate the best price you can. Good luck. Cheers Concrete

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - Avant

I'm guessing here, but it seems possible that dealers have complained to some manufacturers that private buyers are getting fleet discounts by going through brokers - so fewer full-price sales for them.

BMW were certainly kicking up earlier this year: I never did get a quote for a 2-series Active Tourer from either of two brokers. I was lucky to get nearly £6,000 off list price of a Volvo V60, whch the local dealer matched. I'd have got something off if I'd just gone to the dealer, as the V60 has been in production for a few years; but probably not nearly as much as that.

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - RT

Some 60% of the UK market is "fleet" sales so car makers and dealers have long since come to terms with the fact that "user choosers" want to get information and test drives from dealers but then order cars through financing companies, so not bought from the retail price list.

I'd guess that Skoda have rebuilt their brand over the last few decades with retail sales but are now struggling to cope with the increased emphasis on fleet sales, whether genuine fleets or discount brokers taking advantage.

Affinity schemes are often abused by discount brokers using a few "members" credentials to order many vehicles - some dealers clearly go along with this knowing the abuse.

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - concrete

I suppose this is one of the vagaries of the free market. Everyone likes the free market until it occasionally bites them. My point is simple, are the brokers entitled to fleet discount or not? If, by virtue of volume of orders placed they qualify then no problem. If the rules are being strained or broken then it is up to the manufacturers to deal with it. If cars are cheaper, they sell more. If they are expensive they sell fewer but make more profit. They have to do the sums and decide for themselves how they wish to conduct business. The general public members who are prepared to research will always get a better price than a 'walk in'. I see no problem with paying as little as possible for as much as possible. That is the whole basis of trade. The manufacturers and dealers are treading a very fine line between excluding brokers and creating a cartel. If the news ever got out, which it would, then what a stink that would create. I am still waiting to see what Skoda actually do with this situation. My guess now is, they will sit on it until it goes away, and those involved will politely be asked not to repeat the situation.

Cheers Concrete

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - RT

IMO, brokers don't buy large volumes or indeed any volume since they don't buy the cars - difference to the huge finance companies who do buy the cars, lease them out to businesses and then sell them on at the end of their leases.

It's made more complicated by the fact the many cars arranged through brokers are then financed through the car brands own finance arm, often retaining ownership so theoretically entitled to volume discounts!

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - concrete

I agree RT. However brokers do act as agents who collate sales leads and are in a position to greatly influence the purchase and where it is made. I cannot see a dealer refusing to deal with an agent if the agent is placing business with them and dealers are presumably happy with their margin. It may be 'volume discount' or 'fleet discount' in another name, but if they are shifting cars they will be happy. At least we, as customers, are receiving the benefit of these discounts no matter how they are calculated or achieved. I for one would not turn down a good deal through a reputable broker and dealer just because the manufacturer was not too happy with the terms. Would you?

It will be interesting to see what transpires with Skoda regarding the OP and his contract.

Cheers Concrete

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - RT

I agree RT. However brokers do act as agents who collate sales leads and are in a position to greatly influence the purchase and where it is made. I cannot see a dealer refusing to deal with an agent if the agent is placing business with them and dealers are presumably happy with their margin. It may be 'volume discount' or 'fleet discount' in another name, but if they are shifting cars they will be happy. At least we, as customers, are receiving the benefit of these discounts no matter how they are calculated or achieved. I for one would not turn down a good deal through a reputable broker and dealer just because the manufacturer was not too happy with the terms. Would you?

It will be interesting to see what transpires with Skoda regarding the OP and his contract.

Cheers Concrete

No I didn't turn down an internet brokers deal to buy a new VW, saved me £6,000 over my local dealer's discount.

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - concrete

That is one hell of a discount RT. Great stuff for you. I will ask the name of the broker when I am considering a change, early next year I think. Presumably the car was supplied through a VW main dealer too. Excellent.

Cheers Concrete

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - RT

That is one hell of a discount RT. Great stuff for you. I will ask the name of the broker when I am considering a change, early next year I think. Presumably the car was supplied through a VW main dealer too. Excellent.

Cheers Concrete

I used CarWow who were great but the dealer did a poor job on the PDI and handover. The CarWow process works by inviting quotes from dealers which come direct to the buyer and then the buyer chooses which dealer to go with. I paid no money at all to CarWow, so they must get their commission from the dealer.

The other discount dealers were a mixed bunch - some of them only offer a choice of two UK dealers and having chosen don't always bother quoting!

Skoda Superb - Skoda block delivery of new Superbs to NCD buyers - Avant

I got a quote from Coast to Coast for my V60, having originally approached them for a quote for a BMW 2-series Active Tourer. Just at that time (January this year) BMW seemed to have pulled some plug and stopped their dealers from selling through brokers. I don't know if that's still happening, but as I said above, they presumably don't want private punters getting fleet discounts.

Anyway Coast to Coast found nearly £6,000 off from a Volvo dealer in Yorkshire, but Yeovil Volvo matched it and their service was excellent throughout. Ross Hughes is one of the best salesmen I've come across.