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

Decision detail

Summary

Mr R purchased a nine-year-old used car with 36,000 miles under a hire purchase agreement with Blue Motor Finance Limited in June 2025 for £9,995. In November 2025, he complained that the vehicle was of unsatisfactory quality, citing wheel noises, suspension issues, power loss, and rust. BMF commissioned an independent inspection which concluded the faults were wear-related issues not unexpected on a vehicle of such age. The ombudsman found the independent inspection to be the most persuasive evidence and concluded that the identified faults (worn timing chain and worn top mounting bearings) resulted from normal operational wear and incomplete maintenance history rather than defects present at supply. The complaint was not upheld as the vehicle was found to be of satisfactory quality at the point of supply.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015 which implies that goods supplied under hire purchase must be of satisfactory quality at the point of supply. For used cars, satisfactory quality is assessed considering age, mileage, and price paid. The ombudsman found the independent inspection to be the most persuasive evidence, concluding that the identified faults (worn timing chain and worn top mounting bearings) were characteristic of progressive wear over time rather than inherent defects. The incomplete service history and lack of evidence of full service history supported the conclusion that the vehicle's components had experienced normal operational wear. The ombudsman distinguished between a component being worn and producing noise consistent with deterioration versus a catastrophic failure present at supply. Different technicians may reasonably exercise different professional judgment on repair urgency, but both sources acknowledged wear-related maintenance issues rather than inherent defects.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website