Upheld: unsatisfactory quality of goods (vehicle defect) complaint against Black Horse Limited trading as Jaguar Financial Services
Financial Ombudsman decision DRN-6389606 of 2026-06-05T00:00:00+00:00. unsatisfactory quality of goods (vehicle defect) complaint against Black Horse Limited trading as Jaguar Financial Services. Outcome: Upheld.
Decision detail
| Reference | DRN-6389606 |
|---|---|
| Decision date | 2026-06-05T00:00:00+00:00 |
| Firm | Black Horse Limited trading as Jaguar Financial Services |
| Product | Motor finance (PCP / HP) |
| Claim type | unsatisfactory quality of goods (vehicle defect) |
| Outcome | Upheld |
| Remedy | Black Horse Limited should pay £271 compensation (if not already paid). This comprises £100 for distress and inconvenience caused by the transmission repair and £171 for inconvenience regarding the courtesy car provision. |
Summary
Ms V purchased a one-year-old used car via PCP agreement with Black Horse in January 2025 for £49,995. In December 2025, the car's transmission failed at 12,235 miles, requiring replacement of the mechatronic unit. Black Horse repaired the car under warranty and offered £271 compensation. Ms V rejected this, arguing the car should be rejected due to multiple faults (transmission, LKA system, and EV range issues). The ombudsman upheld the complaint regarding unsatisfactory quality but found repair was the correct remedy and the £271 compensation was fair, as the other alleged faults were not established as making the car unsatisfactory.
The Ombudsman's reasoning
Under the Consumer Rights Act 2015, goods must be of satisfactory quality considering their description, price, age, mileage and other relevant circumstances. A one-year-old car with 5,385 miles should be durable and free from significant defects. The transmission failure was premature and established the car was of unsatisfactory quality. However, repair is the correct remedy under the CRA given the significant time elapsed since supply and normal mileage driven. The £271 compensation (20% of monthly payment for courtesy car period plus £100 inconvenience) is reasonable as Ms V remained mobile during a short repair period. The LKA and EV range issues were not established as making the car unsatisfactory quality, so the car did not require multiple repairs to conform to contract.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Black Horse Limited trading as Jaguar Financial Services, all decisions | 2 | 50% |
| Motor finance (PCP / HP), all decisions | 18,521 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website