Not upheld: unsatisfactory quality of goods supplied under hire purchase agreement complaint against BLUE MOTOR FINANCE LIMITED

Decision detail

Summary

Miss N complained that a used car supplied to her on hire purchase by BMF in June 2025 was of unsatisfactory quality, citing drivetrain warnings, worn brake pads, punctured tyre and excessive engine mount movement. BMF commissioned an independent inspection which concluded the faults were not present at point of supply and resulted from wear and tear. The ombudsman upheld BMF's position, finding that the independent engineer's report provided the most persuasive evidence that the faults developed during the four months and 8,000 miles of use after purchase, rather than being present at supply. The ombudsman noted that for a three-year-old car with 56,000 miles, satisfactory quality is assessed against standards appropriate to its age and mileage, and that consumable components like clutches and flywheels naturally deteriorate through normal use.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015 which implies that goods must be of satisfactory quality at point of supply. For a used car with 56,000 miles and three years old, satisfactory quality is assessed by what a reasonable person would find acceptable given the age, mileage and price. The independent engineer's physical inspection and mechanical reasoning provided the most persuasive evidence that the faults (clutch, dual-mass flywheel, engine mount) were not present or developing at supply but rather resulted from normal wear and tear over the 8,000 miles and four months of subsequent use. These components are consumable and subject to gradual deterioration through normal use, and their replacement after such limited use is consistent with wear rather than pre-existing defects.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website