Not upheld: PCP / HP mis-selling complaint against Tesla Financial Services Limited

Decision detail

Summary

Mrs M complained about £820 in charges levied by TFS when she returned a financed vehicle in August 2025, claiming the damage represented normal wear and tear and should be waived due to her loyalty and below-allowance mileage. TFS identified scratches on the bumper and quarter panel and damage to all four alloy wheels. The ombudsman applied BVRLA industry guidelines and found that the scratches exceeded the 25mm acceptable threshold with topcoat penetration, and the alloy wheel damage affected the spokes, both exceeding fair wear and tear standards. The ombudsman rejected arguments that loyalty or mileage allowance should offset damage charges, as these are separate contractual matters. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied BVRLA industry guidelines to assess whether the damage exceeded fair wear and tear. The scratches exceeded the 25mm threshold and had penetrated the topcoat, and the alloy wheel damage affected the spokes, which is explicitly not acceptable under BVRLA guidance. The ombudsman rejected arguments that loyalty, a new agreement, or below-allowance mileage should offset the charges, as these are separate contractual matters and do not remove TFS's contractual entitlement to recover reasonable repair costs.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website