Not upheld: satisfactory quality of goods and fair sale price complaint against Carmoola Limited

Decision detail

Summary

Mrs G purchased a used car through a hire purchase agreement with Carmoola in November 2025 for £18,700. In March 2026, shortly before a planned private sale, she reported a faulty driver's window and an oil leak, providing photographic and video evidence. After returning the car to the dealership, subsequent inspections by both the supplying dealership and auction house found no evidence of these faults. The car was sold at auction for £13,200, leaving Mrs G with a shortfall on her finance agreement. The ombudsman found the inspection reports from experienced professionals more credible than Mrs G's evidence and determined the auction price was fair based on CAP averages, therefore not upholding her complaint.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015 standard of satisfactory quality, which requires goods to meet the standard a reasonable person would consider satisfactory. For a used car of this age and mileage, some wear and tear would be expected. The ombudsman found the two detailed inspection reports from experienced organisations more persuasive than Mrs G's photographic and video evidence, as they were based on physical inspections by experts. Regarding the auction price, the ombudsman noted that auction prices depend on market demand and bidding activity, and found the achieved price was fair as it aligned with CAP averages for comparable vehicles.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website