Not upheld: goods quality and durability - alleged premature failure of hybrid high voltage battery complaint against BMW Financial Services (GB) Limited trading as Alphera Financial Services

Decision detail

Summary

Mr O complained that a used car supplied by Alphera under a PCP agreement in October 2020 was not of satisfactory quality after the hybrid high voltage battery failed in December 2024. Mr O argued that because he refinanced the balloon payment in November 2024, that should be treated as the point of supply for consumer protection purposes, meaning the six-month presumption of fault under the Consumer Rights Act 2015 would apply. The ombudsman rejected this argument, finding the point of supply was October 2020 when the car was first supplied, not the later refinance agreement. Given the car's age (almost eight years old), mileage (over 25,500 miles), and the manufacturer's battery warranty parameters, the ombudsman concluded the battery fault was more likely caused by wear and tear rather than a pre-existing defect, and upheld Alphera's position that the complaint should not be upheld.

The Ombudsman's reasoning

The ombudsman determined that the relevant point of supply under the Consumer Rights Act 2015 was October 2020 when the car was first supplied, not November 2024 when the balloon payment was refinanced, as the refinance agreement was not for the supply of the car itself. Given the car's age (almost eight years old), mileage (over 25,500 miles), and the manufacturer's battery warranty parameters (62,000 miles or six years, whichever comes sooner), the ombudsman concluded the battery fault was more likely caused by wear and tear from Mr O's use rather than a pre-existing defect. The ombudsman found insufficient evidence that the car was not reasonably durable or that the fault was present at the point of supply.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website