Partially upheld: unsatisfactory quality of goods; unfair charges on voluntary termination complaint against BMW FINANCIAL SERVICES (GB) LIMITED trading as Alphera Financial Services

Decision detail

Summary

Miss C complained that a used car supplied under a hire purchase agreement with Alphera in September 2022 was of unsatisfactory quality and that charges applied upon voluntary termination in August 2025 were unfair. The car, approximately 3.5 years old with 23,998 miles at supply, developed a misfiring fault after 3 years and 35,000 miles of use. Although a health check 5 months before supply noted high soot content, the ombudsman found insufficient evidence this indicated an inherent defect at supply. The ombudsman upheld the excess mileage charge (£1,480.79) as it accrued before termination and was clearly disclosed, and upheld most damage charges as exceeding fair wear and tear under BVRLA guidelines. However, the ombudsman partially upheld the complaint by ordering removal of the £255 quarter panel damage charge, which did not clearly exceed the 15mm dent threshold for a car of its age and mileage.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015 standard that goods must be of satisfactory quality, considering the car's age (3.5 years old, 23,998 miles at supply) and price. Although high soot content was noted 5 months before supply, the ombudsman found insufficient evidence that this indicated an inherent defect present at supply, particularly given Miss C drove over 35,000 miles over 3 years before the fault manifested. The ombudsman upheld the excess mileage charge as it accrued before termination under section 99 of the Consumer Credit Act 1974 and was clearly set out in the agreement terms. Regarding damage charges, the ombudsman applied BVRLA guidelines adjusted for the car's age and mileage, finding most charges justified except the quarter panel charge which did not clearly exceed the 15mm dent threshold.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website