Not upheld: unsatisfactory quality of goods supplied under consumer credit agreement complaint against CA AUTO FINANCE UK LTD

Decision detail

Summary

Miss O purchased a used car in December 2023 under a PCP and fixed sum loan agreement with CA Auto. She claimed the car was supplied with a pre-existing engine defect, citing a 2021 main dealer diagnosis of low compression requiring engine replacement. The car experienced multiple faults including DPF and gearbox issues. The ombudsman found the main dealer's report insufficient evidence of a pre-existing defect, as it provided no explanation and the reduced mileage between 2021 and supply could have multiple causes. An independent engineer found no link between the gearbox fault and previous issues. The complaint was not upheld due to insufficient evidence that the car was supplied with a defect present or developing at the time of supply.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which implies that goods supplied must be of satisfactory quality. The key issue was whether the car had a defect present or developing at the time of supply. The ombudsman found the main dealer's report insufficient as it provided no explanation of why the engine needed replacing and merely confirmed the 2021 position. The reduced mileage between 2021 and supply could have multiple explanations beyond the engine fault. The independent engineer found no link between the gearbox fault and previous issues and made no comment about engine replacement. Without sufficient evidence connecting the current faults to a pre-existing defect at supply, the ombudsman was not persuaded the car was supplied in breach of the Consumer Rights Act 2015.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website