Upheld: Goods and services under S75 complaint against BMW Financial Services(GB) Limited trading as ALPHERA Financial Services
Financial Ombudsman decision DRN-6272705 of 2026-06-18T00:00:00+00:00. Goods and services under S75 complaint against BMW Financial Services(GB) Limited trading as ALPHERA Financial Services. Outcome: Upheld.
Decision detail
| Reference | DRN-6272705 |
|---|---|
| Decision date | 2026-06-18T00:00:00+00:00 |
| Firm | BMW Financial Services(GB) Limited trading as ALPHERA Financial Services |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | AFS must: (1) Reimburse repair costs of £822.99; (2) Reimburse hire car costs of £253.66; (3) Pay 8% simple yearly interest on the above amounts from the date Mrs M made the payments; (4) Pay £150 for distress and inconvenience; (5) Remove any incorrect adverse information from Mrs M's credit file relating to the agreement. |
Summary
Mrs M purchased a used car via hire purchase with ALPHERA Financial Services in February 2024. The vehicle, approximately 2.5 years old with 29,184 miles, developed a head gasket failure in October 2025 after approximately 1 year 8 months of use. Mrs M paid for repairs and subsequently paid to voluntarily terminate the agreement. The ombudsman upheld her complaint, finding the vehicle was not of satisfactory quality due to insufficient durability of the head gasket component. ALPHERA was ordered to reimburse repair costs (£822.99), hire car costs (£253.66), pay 8% interest, and £150 compensation, but not the voluntary termination payment.
The Ombudsman's reasoning
The ombudsman applied the Consumer Rights Act 2015, which requires goods supplied under a consumer credit contract to be of satisfactory quality and durable. While the vehicle was used with moderate mileage, a reasonable person would expect a head gasket to last significantly longer than 1 year 8 months and approximately 25,000 miles of use. The ombudsman found the vehicle was not sufficiently durable when supplied, making it of unsatisfactory quality. The ombudsman rejected the claim for voluntary termination costs as Mrs M chose to terminate after the vehicle was repaired and there was no evidence the repair failed.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| BMW Financial Services(GB) Limited trading as ALPHERA Financial Services, all decisions | 41 | 43% |
| Goods and services under S75, all decisions | 19,872 | 36% |
| Motor finance (PCP / HP), all decisions | 19,840 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website