Not upheld: goods not of satisfactory quality - used car hire purchase complaint against STARTLINE MOTOR FINANCE LIMITED

Decision detail

Summary

Ms H acquired a used 8-year-old car through a hire purchase agreement with SMFL in December 2024. She reported persistent faults including alternator problems, non-starting, exhaust smoke, and battery/DPF concerns shortly after supply, and the supplying dealership carried out repairs at no cost. Ms H complained to SMFL in March 2025 requesting to return the car and cancel the agreement. SMFL commissioned an independent inspection which found no evidence of active mechanical or electrical faults, no fault codes, and concluded previous repairs were effective. The ombudsman found the independent inspection report to be the most compelling evidence and, in the absence of evidence of current faults or failed repairs, did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015 implied term that goods must be of satisfactory quality. The ombudsman noted that faults identified within six months are presumed to have been present at supply unless the firm proves otherwise, but faults identified after six months require the consumer to prove they were present at supply. The ombudsman found the independent engineer's report to be the most compelling evidence. The engineer conducted a physical examination and road test, finding no evidence of active mechanical or electrical faults, no fault codes, normal starting, normal exhaust emissions, and that previous repairs appeared effective. The ombudsman concluded that without evidence of current faults or failed previous repairs, the complaint could not be upheld.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website