Not upheld: Goods and services under S75 complaint against CA Auto Finance UK Ltd

Decision detail

Summary

Miss S acquired a used car via hire purchase with CAAF in September 2024 for £6,848. She initially complained about minor issues in November 2024, which CAAF upheld and offered compensation. When the car's engine failed in July 2025 requiring £5,000 in repairs, Miss S sought to reject the car. An independent inspection concluded the engine damage resulted from a sudden heater matrix pipe fracture occurring after supply, not a pre-existing fault. The ombudsman found that for an eight-year-old car with 60,500 miles, the standard of satisfactory quality was lower than for a new vehicle, and the evidence did not support that the engine defect was present at supply. The complaint was not upheld.

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 six-month presumption would normally apply, the independent inspection provided persuasive evidence that the engine damage occurred after supply due to a sudden fracture, not a pre-existing or developing fault. For a used car of this age and mileage, a reasonable person would expect some components to require repair or replacement sooner than on a new vehicle. The ombudsman found the engine failure was attributable to wear and tear rather than unsatisfactory quality at supply.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website