Upheld: unsatisfactory quality of goods supplied under hire purchase agreement complaint against BMW FINANCIAL SERVICES (GB) LIMITED trading as Alphera Financial Services

Decision detail

Summary

Mr K purchased a used car via hire purchase agreement with Alphera in August 2024. The car broke down in January 2025 requiring over £13,000 in repairs including engine and turbo replacement. Alphera refused to cover costs, claiming the warranty was invalidated by alleged red diesel use and arguing no fault was present in the first six months. The ombudsman upheld the complaint, finding the car was not of satisfactory quality when supplied under the Consumer Rights Act 2015, as the fault presented within six months and Alphera provided no evidence to rebut the presumption it was present at sale. The ombudsman rejected the red diesel defense as unproven and irrelevant, ordering Alphera to cover all repair costs, refund ancillary expenses, and pay £500 compensation.

The Ombudsman's reasoning

The Consumer Rights Act 2015 requires goods to be of satisfactory quality when supplied and implies conformity within the first six months, placing the burden on the supplier to prove otherwise if a fault appears within this period. Mr K's car suffered a catastrophic breakdown in January 2025 (within six months of August 2024 supply), requiring over £10,000 in repairs. Alphera provided no evidence that this fault was not present or developing at point of sale. The red diesel allegations, which emerged in June 2025 months after the breakdown, are irrelevant to the quality issue and unproven. The ombudsman found no credible evidence that Mr K introduced red diesel and noted the car had been handled by multiple unknown garages over months, making attribution impossible. Alphera's focus on warranty invalidation and red diesel disputes distracted from their clear responsibility under consumer protection law.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website