Upheld: irresponsible lending / goods not of satisfactory quality complaint against CA Auto Finance UK Ltd trading as CA Auto Finance UK

Decision detail

Summary

Mr C purchased a six-year-old used car via hire purchase with CAAF in June 2025 for £30,890. Within 30 days, the engine management light illuminated and the car cut out while driving, prompting Mr C to notify CAAF of faults and his intention to reject the car. CAAF initially refused rejection and improperly directed Mr C to return to the dealership for inspection despite Mr C having relocated several hundred miles away. An independent inspection arranged by CAAF in August 2025 concluded the faults would have been present or developing at point of supply, but CAAF still refused rejection. The ombudsman upheld the complaint, finding the car was not of satisfactory quality and Mr C was entitled to reject it, ordering CAAF to end the agreement, collect the car, refund the deposit and monthly repayments (with 10% deduction for June-August use), pay £300 compensation, and remove adverse credit information.

The Ombudsman's reasoning

The ombudsman found the independent inspection report to be the most persuasive evidence, concluding the car had faults present or developing at point of supply. The car was not of satisfactory quality given its age, mileage, and price, as a reasonable person would expect a car of this value to not develop such faults so soon after purchase. CAAF failed to fulfil its responsibility under the Consumer Rights Act 2015 by not promptly establishing when and why faults occurred. The third-party technical evidence acknowledging that remedial work would be needed to rectify the faults further confirmed the car was not of satisfactory quality at supply. Mr C's refusal to return to the dealership did not impede CAAF's ability to investigate, as CAAF had the responsibility to arrange inspection and Mr C had relocated.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website