Not upheld: goods not of satisfactory quality - used car hire purchase complaint against First Response Finance Limited

Decision detail

Summary

Ms P complained that a used car acquired via hire purchase from First Response Finance Limited in March 2025 was not of satisfactory quality. The car was over 11 years old with 127,000 miles and cost £7,995. In August 2025, after five months of ownership and 5,000 additional miles, Ms P reported drivetrain faults and grinding noises. FRF arranged an independent inspection which concluded the faults resulted from wear and tear occurring during Ms P's possession, not defects present at supply. The ombudsman upheld FRF's decision, finding the independent expert report persuasive evidence that the car met satisfactory quality standards at supply, and that repairs to used vehicles are an inherent risk of ownership.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which implies goods supplied under hire purchase must be of satisfactory quality at point of supply. While the CRA presumes faults reported within six months were present at supply (placing burden on supplier to prove otherwise), the independent inspection report provided persuasive evidence that the drivetrain and DPF faults occurred during Ms P's possession due to wear and tear. The car's age (11+ years), mileage (127,000 miles at supply), and price (£7,995) meant a reasonable person would expect lower standards than a newer car and would anticipate repairs on a used vehicle. The ombudsman was satisfied the repairs undertaken by L were reasonable and successful, and that Ms P had travelled only 5,000 miles in five months before reporting the faults.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website