Upheld: irresponsible supply of goods - satisfactory quality breach complaint against Specialist Motor Finance Limited

Decision detail

Summary

Mrs M purchased a used 3-year-old car with 46,328 miles via hire purchase with SMF in October 2024. Within weeks, she reported engine management light issues and loss of power. Despite dealership repairs in December 2024, the problem recurred in July 2025. An independent inspection identified a wet timing belt degradation fault with low oil pressure, concluding it was present or developing at supply. The dealership disputed this, claiming the faults were wear and tear related. The ombudsman upheld Mrs M's complaint, finding the independent evidence more credible and concluding the car was not of satisfactory quality at supply. Mrs M was allowed to reject the car and received refunds of deposit, instalments from August 2025 onwards, pro-rata tax and insurance costs, plus £300 compensation and 8% interest.

The Ombudsman's reasoning

The ombudsman found the independent inspector's findings more persuasive than the dealership's position because the inspector was independent with no vested interest, provided documentary evidence of the fault code, and explained the progressive nature of timing belt degradation. The fact that remedial work was needed within weeks of purchase supported the conclusion the fault was present or developing at supply. Although the car had not reached manufacturer guidelines for belt replacement, this was a guideline and individual cases must be assessed separately. The timing belt fault constituted a breach of the satisfactory quality term under the Consumer Rights Act 2015.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website