Santander and BMW in High Court spat over motor finance dispute

Santander and Volvo are embroiled in a legal battle with BMW in the High Court following a dispute over motor finance deals. The Spanish banking institution, along with Volvo Financial Services, asserts that BMW caused damages by unlawfully reselling the same luxury vehicles to the carmaker. The dispute arose after the collapse of two London car dealerships in 2024.

According to court filings, Santander and Volvo purchased the vehicles from the dealerships between 2021 and 2023, providing finance to retail customers. However, the dealerships then unlawfully resold the same cars to BMW, leaving the two firms claiming ownership over the same automobiles.

In their court filings, Santander and Volvo claim that BMW wrongfully took the vehicles for its own use and improperly registered its own financial interests against them on credit databases. Moreover, the manufacturers' financial services arm allegedly re-financed at least one of the disputed cars to its own customer, despite allegedly knowing that Santander and Volvo were the legal owners.

Court documents state that "at all material times, [BMW Financial Services] knew of [Santander and Volvo]’s title to and financial interest in the Vehicles."

BMW has declined to comment on the matter, but the firm has enlisted the help of UK law firm Lester Aldridge for the High Court dispute. The financial stakes of the case could reach £160,000, covering unpaid finance debts, or up to £264,000, matching the original purchase price of the vehicles. Santander and Volvo have not responded to requests for comment on the case or the court filings.