Insider Information Regarding Goodwill Repairs
Thursday, 15. October 2020
Every so often I receive directions to dealerships by solicitors to protect them from consumer claims. Anything to avoid carrying out a repair or paying back money. In this missive, they explain what a dealer should do when it comes to carrying out repairs as a gesture of goodwill.
Dealerships often have a policy on when they will allow goodwill repairs. They may be offered because the warranty has recently run out, the problem is recurring due to possible driver error, or because the customer just likes to complain and it gets them off your back.
Most customers will accept goodwill gestures for what they are, a goodwill gesture and not a legal obligation. But there is always one customer who tries it on, pushing to get all they can out of you, taking advantage of your generosity.
There is a danger that you carry out a goodwill repair to something that didn’t exist at the point of sale or has been described as falling within the constraints of the Consumer Rights Act, giving the customer the impression the problem is the dealer’s responsibility and the problem existed when they bought the car.
By carrying out a repair, you are potentially taking ownership of the problem. The repair must resolve the problem brought to you in the first place or else you could be pursued to court on the basis that your repair caused the fault that is now being complained about.
A goodwill repair can blow up in your face as it could infer an extension to the warranty or that there is a warranty on the parts that you fit. This is made worse if you suspect that the problem has been caused by the customer driving or modifications carried out.
Your repairs could mask the true cause of the original problem and make it difficult to prove further down the line.
If legal proceedings are issued by the customer, goodwill repairs can also make it more difficult in your defence to argue that there was nothing wrong with the vehicle when sold. Judges don’t generally need too much persuading to conclude that a vehicle was faulty at the point of sale.
This doesn’t mean that goodwill repairs should not be carried out. They are an important tool in generating loyal customers, especially as for many consumers it’s how a complaint is dealt with that can say far more about you than how the sale was dealt with.
However, it is important you document your decision by making it clear it is a goodwill repair – it is not under the warranty, there is no warranty for any new parts fitted as part of(s) provision, and it is in no way an admission the vehicle has any defects or issues. By Graham Hill
