Not upheld: satisfactory quality of goods under hire purchase agreement complaint against FIRST RESPONSE FINANCE LIMITED

Decision detail

Summary

Mr and Mrs C purchased a nine-year-old used car (85,335 miles) via hire purchase in January 2025 for £10,794. In August 2025, after driving approximately 5,000 miles, the car developed a serious engine fault requiring replacement at a cost of £3,611.94. They complained that the car was not of satisfactory quality. First Response declined to cover the full repair costs but offered £437 and an interest-free loan. The ombudsman found the car was of satisfactory quality at the time of supply because the fault developed seven months later after substantial use, indicating it was not a pre-existing defect but rather wear and tear consistent with a vehicle of its age and mileage. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which requires goods to be of satisfactory quality. For a used car, satisfactory quality must be assessed considering its age, mileage, price, and prior usage. The key finding was that the engine fault occurred seven months after purchase following 5,000 miles of use, making it unlikely the fault existed at the time of supply. A reasonable person would expect a nine-year-old vehicle with 85,335 miles to require some repairs and maintenance during ownership. The garage's assessment that the fault was fair wear and tear, combined with the complainants' ability to drive the car for 5,000 miles before failure, indicated the car was reasonably durable for its age and prior usage. The ombudsman concluded the car was of satisfactory quality at the point of sale and the subsequent engine failure was not indicative of a defect present at supply.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website