Not upheld: unsatisfactory quality of goods supplied under hire purchase agreement complaint against Tandem Motor Finance Limited

Decision detail

Summary

Mr F purchased a used car through a hire purchase agreement with Tandem Motor Finance Limited in February 2025 for £4,890. The car was approximately 12 years old with nearly 100,000 miles. Several months after supply, the car developed multiple faults including a coolant leak that caused engine breakdown in July 2025, along with issues with the air intake pipe, air conditioning, rear sensors, and worn brake components. Mr F complained that the car was of unsatisfactory quality and requested Tandem cover repair costs. Tandem declined but paid £200 as a goodwill gesture. The ombudsman found no evidence the car was of unsatisfactory quality at point of supply, determining the coolant leak developed after delivery and was consistent with wear and tear given the vehicle's age and mileage, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015 standard of satisfactory quality, considering the car's age, mileage, and price as relevant circumstances. The key finding was that the coolant leak was not present at point of supply because: (1) the independent engineer concluded it was consistent with wear and tear and would likely have been detected at the MOT if present; (2) Mr F drove approximately 6,000 miles over five months before breakdown, suggesting no active leak was present; (3) both expert reports indicated the failure occurred suddenly several months after supply, not that an underlying defect existed at supply. The ombudsman rejected Mr F's suspicion of masked faults as unsupported by mechanical evidence. Other issues such as worn brake pads and non-functional sensors were characterized as maintenance or minor defects not rendering the car unsatisfactory given its age and mileage.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website