Partially upheld: goods not of satisfactory quality / fitness for purpose complaint against BLUE MOTOR FINANCE LIMITED

Decision detail

Summary

Mr V purchased a 10-year-old car with 84,092 miles via hire purchase with Blue Motor Finance in May 2025. Warning lights and mechanical issues emerged shortly after collection, leading to diagnostic tests costing £222 and a quote of £1,500 for repairs. The dealer and Blue Motor Finance declined to cover costs. An independent inspection in September 2025 found the car ran smoothly but had some component wear issues. The ombudsman rejected the car rejection claim as insufficient evidence showed the defects were present at supply, but upheld reimbursement of diagnostic costs as these arose within six months, requiring the firm to prove faults were not developing at supply.

The Ombudsman's reasoning

Under the Consumer Rights Act 2015, goods supplied under hire purchase must be of satisfactory quality at point of supply. For a used car aged 10 years with 84,092 miles, some wear and tear is expected. While warning lights and issues were identified, the independent inspection concluded these were due to gradual reduction in component performance rather than defects present or developing at supply. The inspector found the engine started readily and ran smoothly with no abnormal noise. The inconsistency between inspection reports and the mileage increase to 89,000 by September suggested the car was usable. However, diagnostic costs should not fall to the consumer when issues arise within six months.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website