Upheld: quality of goods - lack of satisfactory quality and durability complaint against BMW Financial Services (GB) Limited trading as Alphera Financial Services

Decision detail

Summary

Mr M purchased a seven-year-old used car via hire purchase from Alphera in January 2025 for approximately £37,000. In June 2025, after five months of ownership and 7,000 miles of use, the air conditioning compressor failed. While warranty covered most repairs, Mr M was left to pay £1,230.84 for receiver dryer replacement, which Alphera refused to cover. The ombudsman upheld the complaint, finding the car was not of satisfactory quality due to premature compressor failure, and that the receiver dryer replacement was mandatory per manufacturer's instructions. Alphera was ordered to refund repair costs, two months of hire purchase payments during the repair period, and pay £400 compensation.

The Ombudsman's reasoning

Under the Consumer Rights Act 2015, goods supplied must be of satisfactory quality, including being reasonably durable. A reasonable person would expect an air conditioning compressor to last 10+ years and 100,000+ miles. The compressor failed at 45,000 miles with no evidence of poor maintenance, indicating premature failure and lack of satisfactory quality at point of supply. The warranty company's partial coverage does not absolve Alphera of responsibility, as warranty coverage varies and does not alter statutory obligations. The receiver dryer replacement was mandatory per manufacturer's instructions to prevent damage to the new compressor, making it a necessary part of the repair remedy.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website