The customer entered into an agreement with Santander in 2021, for the supply of a used car. Prior to the agreement, the car had been involved in a road accident in which the driver’s side air bag had been deployed and so the car did not have a functioning driver’s side airbag when it was delivered to the customer. They had concerns about
the safety of the car shortly after taking delivery, though it could be driven and was roadworthy.

The customer rejected the car over a year after taking delivery. Santander accepted the customer’s rejection. It had been driven for approximately 9,572 miles between before it was rejected.

Following rejection, Santander refunded all payments the customer made, though deducted sums to represent the customer’s use of the car. The customer wasn’t happy about the deduction and raised court action against Santander.

An evidential hearing took place. The customer’s position was that there should be no deduction of the sum paid in relation to use of the car. Santander’s position was that the deduction was adequate and fair in the circumstances and should not be reduced.

With reference to the statutory provisions and case law, the Court confirmed:

1. whether or not to allow a discount for use of a vehicle is a matter for the discretion of the court;
2. the court should exercise its discretion in light of the whole circumstances of the case
3. in calculating any deduction for use, reference should be had to the daily rate payable for the car per the terms of the contract
4. any deduction should reflect the benefit the consumer has had from the use of the vehicle

The court considered the customer’s use of the car and the mileage incurred, however was not persuaded that the general condition of the car had affected the customer’s use of it.

The court decided that a reasonable amount to allow for the customer’s use of the car was £3,896.40 and ordered payment of that sum by Santander.

Finally, the court considered that the £500 Santander had paid to the customer in relation to inconvenience, was adequate.

This decision provides authority in Scotland that a deduction for use of a car which is rejected may be applied to sums refunded, though the amount of deduction will be calculated based on an analysis of the full circumstances of the case.