Upheld: unsatisfactory quality of goods / defective vehicle complaint against BMW Financial Services (GB) Limited trading as Alphera Financial Services
Financial Ombudsman decision DRN-6273201 of 2026-04-23T00:00:00+00:00. unsatisfactory quality of goods / defective vehicle complaint against BMW Financial Services (GB) Limited trading as Alphera Financial Services. Outcome: Upheld.
Decision detail
| Reference | DRN-6273201 |
|---|---|
| Decision date | 2026-04-23T00:00:00+00:00 |
| Firm | BMW Financial Services (GB) Limited trading as Alphera Financial Services |
| Product | hire-purchase agreement (motor finance) |
| Claim type | unsatisfactory quality of goods / defective vehicle |
| Outcome | Upheld |
| Remedy | BMWFS must: (1) cover tie rod replacement costs £557.72; (2) cover transfer box oil change and drain plug washer £188.41; (3) cover rear trim rectification £258.86; (4) reimburse tyre replacement costs £1,120.56; (5) reimburse diagnostic check costs £120 if not already done; (6) reimburse cost of obtaining repair estimate upon receipt of evidence; (7) pay 8% simple interest annually on items 4, 5, and 6 from date of payment until settlement; (8) pay additional £100 compensation for distress and inconvenience (in addition to £200 already offered) |
Summary
Mr W purchased a used BMW through a hire-purchase agreement with BMWFS in October 2024 for £32,990. Within days he reported suspension creaking and subsequently identified additional defects including mismatched tyres not meeting manufacturer specifications, transmission juddering, and an undisclosed aftermarket tow bar with damaged rear trim. Three inspection reports documented various faults, and the vehicle had an outstanding EGR cooler recall at point of sale. BMWFS initially rejected the complaint citing lack of formal diagnosis and offered only £200 compensation. The FOS investigator found the vehicle not of satisfactory quality and recommended repairs/reimbursement. The ombudsman upheld the complaint, finding that defects reported within one month of purchase were presumed present at supply under the Consumer Rights Act 2015, and ordered BMWFS to cover repair costs totalling approximately £2,245.01 plus interest and pay £100 additional compensation, rejecting BMWFS's argument that different standards apply to non-BMW dealership purchases.
The Ombudsman's reasoning
The ombudsman applied the Consumer Rights Act 2015 which implies goods must be of satisfactory quality. Given the vehicle was reported as defective within days of purchase and within one month to BMWFS, the six-month presumption under CRA2015 applies - faults occurring within six months are presumed to have been present or developing at point of supply. The ombudsman found that a reasonable person would not expect the reported problems (suspension creaking, transmission judder, incorrect tyres affecting safety systems, damaged trim from undisclosed tow bar) on a used car regardless of age/mileage. Report 3's findings that the tyres could 'change the characteristics of the vehicle' and potentially affect safety systems constituted an inherent defect. The vehicle's outstanding recall notice further evidenced unsatisfactory quality at point of supply. BMWFS had not yet had opportunity to effect repairs, making repair/reimbursement the fairest remedy under CRA2015 section 23. The ombudsman rejected the misrepresentation claim as there was no evidence BMWFS knew the tow bar history was important to Mr W, and generally silence does not constitute misrepresentation unless the buyer was acting under a known misunderstanding.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| BMW Financial Services (GB) Limited trading as Alphera Financial Services, all decisions | 31 | 37% |
Source
Read the original decision on the Financial Ombudsman Service website