Upheld: goods not of satisfactory quality / defective vehicle complaint against BMW FINANCIAL SERVICES (GB) LIMITED trading as Alphera Financial Services
Financial Ombudsman decision DRN-5955988 of 2026-04-20T00:00:00+00:00. goods not of satisfactory quality / defective vehicle complaint against BMW FINANCIAL SERVICES (GB) LIMITED trading as Alphera Financial Services. Outcome: Upheld.
Decision detail
| Reference | DRN-5955988 |
|---|---|
| Decision date | 2026-04-20T00:00:00+00:00 |
| Firm | BMW FINANCIAL SERVICES (GB) LIMITED trading as Alphera Financial Services |
| Product | Motor finance (PCP / HP) |
| Claim type | goods not of satisfactory quality / defective vehicle |
| Outcome | Upheld |
| Remedy | Alphera to: (1) fully refund repayments from 22 September 2025 onwards with 8% simple interest per annum from date of payment to settlement; (2) refund 15% of repayments for periods with courtesy car with 8% simple interest per annum from date of each payment to settlement; (3) pay £250 compensation if not already paid. |
Summary
Mrs G financed a car with Alphera in January 2025 but experienced persistent engine management faults starting in February 2025. Despite multiple repair attempts, the faults remained unresolved by July 2025, and the car was returned on 22 September 2025. Alphera offered a deposit refund and £250 compensation, but Mrs G sought a full refund less fair usage deduction. The ombudsman upheld the complaint, ordering a 15% refund of repayments for periods with courtesy cars (reflecting loss of the financed vehicle while remaining mobile), full refunds from the return date, and £250 compensation.
The Ombudsman's reasoning
The ombudsman agreed that the car was not of satisfactory quality due to persistent faults that could not be successfully repaired. A 15% refund of repayments for periods when Mrs G had courtesy cars (rather than full refund) was considered fair because she remained mobile but lacked the financed car she was paying for. This represents a reasonable deduction for fair usage. All repayments from the date of return (22 September 2025) should be fully refunded as Mrs G no longer had the car. The £250 compensation for distress and inconvenience was already offered and is in line with similar FOS awards.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| BMW FINANCIAL SERVICES (GB) LIMITED trading as Alphera Financial Services, all decisions | 31 | 37% |
| Motor finance (PCP / HP), all decisions | 18,521 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website