Not upheld: unfair charges (damage and excess mileage) complaint against BMW Financial Services (GB) Limited

Decision detail

Summary

Mr A complained about charges imposed at the end of his car finance agreement with BMWFS, comprising £1,446.72 for vehicle damage and £928.52 for excess mileage. The car was collected in September 2025 with 56,914 miles, exceeding the 51,895 mile limit stated in the March 2023 hire purchase agreement. Mr A argued the damage was consistent with wear and tear for a six-year-old vehicle and that he believed the mileage allowance should have continued from his earlier agreement. The ombudsman found the damage charges were fairly applied using BVRLA standards and the excess mileage charge was correctly calculated per the agreement terms, rejecting Mr A's claims of misrepresentation as the mileage information was clearly shown in the agreement.

The Ombudsman's reasoning

The ombudsman found that BMWFS reasonably applied BVRLA industry-standard guidance to assess the damage charges. Regarding the mileage dispute, the ombudsman placed weight on the documentary evidence of the 2023 agreement which clearly stated the maximum total mileage of 51,895 miles on the first page. As a new agreement, it superseded the earlier one and the unused mileage allowance was not carried forward, which the ombudsman considered reasonable. The ombudsman was not satisfied there was sufficient evidence of misrepresentation or material non-disclosure, noting that Mr A would have had the opportunity to review the agreement before signing.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website